Summary

• Palo Alto Networks is rated hold due to fair valuation and lagging performance versus the S&P 500.
• PANW delivered solid Q2 results with 15% revenue growth and 33% NGS ARR growth, but guidance was lukewarm and sentiment remains cautious.
• Valuation remains premium, with shares trading above historical price-to-sales and a mid-40s P/E multiple justified only by moderate EPS growth expectations.
• Technical signals are mixed; support at $140 is critical, and bulls must overcome a declining 200-day moving average for sustained upside.

Cybersecurity stocks have gotten caught up in the software selloff. Shares of Palo Alto Networks (PANW) plunged nearly 40% from their October 2025 high to the “Citrini Research” February 2026 low under $140. Ahead of earnings due out in May, I reiterate a hold rating.

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