Palo Alto Networks stock faces a tighter EPS test before November 18

Palo Alto Networks is heading toward its fiscal first-quarter report with revenue growth still strong but a tighter per-share earnings test. The company will publish results for the quarter ended October 31 after the U.S. market close on Wednesday, November 18, followed by a webcast.

The company announced the reporting date in a Palo Alto Networks press release dated November 3. Management will discuss the figures at 4:30 p.m. Eastern time.

Revenue growth meets a narrower EPS cushion

For the fiscal first quarter, Palo Alto Networks guided revenue to 3.30 billion to 3.31 billion dollars, representing growth of 33% to 34% from the prior-year period. Adjusted earnings per share are expected at 0.96 to 0.98 dollars, compared with 0.93 dollars a year earlier.

The gap between sales growth and per-share progress reflects the enlarged share base following the CyberArk identity-security acquisition. Investors will therefore focus not only on reported revenue but also on the integration's contribution to next-generation security annual recurring revenue.

November 18 sets the next test

Management expects first-quarter NGS ARR of 9.54 billion to 9.56 billion dollars. The company's fiscal 2027 outlook calls for revenue of 14.1 billion to 14.2 billion dollars and adjusted full-year earnings per share of 4.16 to 4.19 dollars.

Cloud-hosting costs and the effect of the enlarged share count add pressure to margins and per-share results. A result near the upper end of the operating outlook would give investors a stronger basis for assessing whether the CyberArk transaction is broadening the platform or mainly increasing reported scale.

Palo Alto Networks stock traded at 305.15 euros on Lang & Schwarz at 17:35:54 CET on Wednesday, November 11.

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