The Tel Aviv Stock Exchange rose today. The Tel Aviv 35 Index rose 0.27% to 4,243.47 points - a new record, the Tel Aviv 125 Index rose 0.05% to 4,204.63 points; but the BlueTech Global Index fell 1.08% to 670.86 points. The All Bond corporate bond index fell 0.06% to 424.33 points. Turnover totaled NIS 4.24 billion in equities and NIS 3.34 billion in bonds. On the foreign exchange market, the representative shekel-dollar rate was set unchanged from Friday, at NIS 3.123/$, and the representative shekel-eu ...

While artificial intelligence (AI) is one of the biggest disruptive technologies of this generation, it also poses a challenge to some established companies, including cybersecurity firms and software companies. In short, AI-powered programs are developing quickly enough that they can perhaps duplicate the actions of some software, including tools that automate workflows or provide analytics. For cybersecurity firms, it’s more of a double-edged sword. AI can help cybersecurity companies expand their reach ...

Core Viewpoint - Palo Alto Networks has experienced a significant decline in stock price, down over 25% in the past year, and further dropped following its recent fiscal Q2 earnings announcement, raising questions about potential investment opportunities [1]. Financial Performance - For fiscal Q2 2026, Palo Alto reported a revenue increase of 15% year over year, reaching $2.59 billion, which was at the high end of its forecast [5]. - Service revenue grew by 13% to $2.08 billion, with subscription revenue up 14% and support revenue increasing by 12% [5]. - Product revenue rose by 22% to $514 million, driven by growth in software firewalls [5]. - Adjusted earnings per share (EPS) surged by 27% year over year to $1.03, exceeding guidance of $0.93 to $0.95 [6]. Strategic Acquisitions - Palo Alto is actively pursuing a platformization strategy, acquiring companies to enhance its cybersecurity solutions [3]. - Recent acquisitions include Chronosphere for real-time data monitoring and CyberArk for privileged access, with a new acquisition of Koi for AI enterprise endpoint security solutions announced alongside the earnings report [3][4]. - While these acquisitions strengthen the company's market position, they are expected to negatively impact EPS in the short term due to the stock component of the CyberArk deal [4]. Future Guidance - The company updated its full-year guidance, projecting revenue growth of 22% to 23% for fiscal 2026, with a revised revenue forecast of $11.28 billion to $11.31 billion [8]. - The next-generation security annual recurring revenue (ARR) is expected to reach $8.52 billion, reflecting a growth rate of 53% to 54% [9]. - Adjusted EPS guidance was lowered to $3.65 to $3.70, indicating a growth rate of 9% to 11% [9]. Valuation and Investment Outlook - The recent drop in stock price has led to a more attractive valuation, with a forward price-to-sales ratio of 9 times fiscal 2027 estimates and a forward price-to-earnings ratio of 33 times 2027 estimates [10]. - Despite initial EPS pressure from acquisitions, these strategic moves are viewed as beneficial for long-term growth, suggesting that current stock levels may present a buying opportunity [10][11].

Core Insights - Palo Alto Networks is experiencing significant growth as it addresses the increasing threats in the cybersecurity landscape, with severe cyberattacks occurring four times faster than a year ago [2][4] - The company is integrating artificial intelligence into its cybersecurity products to enhance efficiency and effectiveness in combating cyber threats [6][10] Financial Performance - In the fiscal 2026 second quarter, Palo Alto generated $2.6 billion in total revenue, marking a 15% increase year-over-year, with its next-generation security (NGS) portfolio growing over twice as fast [12][13] - The annual recurring revenue (ARR) for NGS reached $6.3 billion, reflecting a 33% growth [12] - The company has raised its full-year revenue forecast to $11.3 billion, a 23% increase from the previous year, with NGS ARR expected to grow by 54% to $8.6 billion [13] Product and Market Strategy - Palo Alto's Cortex XSIAM platform automates security operations, allowing 60% of its customers to remediate threats in under 10 minutes, a significant improvement from previous response times [7] - The company emphasizes "platformization," encouraging businesses to consolidate their cybersecurity needs with a single vendor to fill security gaps effectively [9][10] - As of the end of the fiscal 2026 second quarter, 1,550 customers were considered "platformed," a 35% increase from the previous year, with a net revenue retention rate of 119% [14][15] Competitive Positioning - Palo Alto's stock is currently trading at a price-to-sales (P/S) ratio of 11.1, which is 50% lower than its main competitor, CrowdStrike [16] - The NGS segment of Palo Alto generates more ARR than CrowdStrike's entire business, which is around $4.9 billion, and Palo Alto's NGS ARR grew by 33% compared to CrowdStrike's 23% [18] - Management believes there is potential for significant growth, aiming to triple NGS ARR to $20 billion by fiscal 2030, indicating a strong long-term investment opportunity [19]

Group 1 - The article discusses the focus of Cash Flow Club on businesses with strong cash generation, emphasizing the importance of buying these companies at the right time for potential rewards [1] - Palo Alto Networks (PANW) is identified as a growth company that has recently faced significant pressure on its shares, although they are now cheaper than before [1] - The article highlights the expertise of Jonathan Weber, who has been active in the stock market and shares research on value and income stocks, occasionally covering growth stocks [1] Group 2 - Cash Flow Club offers features such as access to a leader's personal income portfolio targeting a yield of over 6%, community chat, and a "Best Opportunities" List [1] - The club covers various sectors including energy midstream, commercial mREITs, BDCs, and shipping, with a focus on company cash flows and access to capital [1]

An upstart seems to be challenging the fundamental business model of cybersecurity businesses.Artificial intelligence (AI) is indisputably a disruptive technology. On fears that one currently strong industry it'll disrupt is cybersecurity, investors traded out of titles in the sector on Friday. One of the victims of this trend was Palo Alto Networks (PANW 1.52%), which saw its shares slide by 1.5% that trading session.Is Claude coming for them?These worries aren't new, but they were given some oxygen on Fri ...

​Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Best Dip Stocks to Buy According to Hedge Funds. On February 17, Palo Alto Networks, Inc. (NASDAQ:PANW) announced its intent to acquire Koi, which is a startup specializing in Agentic Endpoint Security. ​As AI integration speeds up, the security risk from AI agents and tools grows with it. Management noted that this strategic acquisition will provide additional visibility and control over AI endpoints, which often evade traditional antivirus protection ...

Core Insights - Palo Alto Networks (PANW) and Cisco Systems (CSCO) are significant players in the cybersecurity sector, with PANW focusing on next-generation firewalls, cloud security, and AI-driven threat detection, while CSCO emphasizes Threat Intelligence, Detection, and Response offerings, including Secure Access Service Edge (SASE) and Network Security [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2031, driven by increasing complex attacks such as credential theft and social engineering [2] Company Analysis: Palo Alto Networks (PANW) - PANW is recognized as a leader in cybersecurity, providing comprehensive solutions for network security, cloud security, and endpoint protection [4] - The company’s SASE segment is its fastest-growing area, with Annual Recurring Revenues (ARR) increasing by 40% year-over-year in Q2 of fiscal 2026 [5] - A significant deal worth over $50 million was secured with a global automotive leader for a major security transformation, highlighting PANW's strong market position [6] - PANW faces challenges from integration and acquisition-related costs, including a $25 billion acquisition of CyberArk and a $3.35 billion acquisition of Chronosphere, leading to increased costs and potential profitability impacts [7] - The issuance of 112 million shares as part of the CyberArk deal is expected to cause significant equity dilution, with EPS guidance for fiscal 2026 revised down to $3.65-$3.70 from $3.80-$3.90 [8] Company Analysis: Cisco Systems (CSCO) - CSCO is making steady advancements in its security business, with new products like Secure Access and AI Defense gaining traction, now representing about one-third of its security portfolio [9] - The company added 2.5 million Secure Access users in Q2 of fiscal 2026, with new customer acquisitions contributing significantly to new bookings [11] - CSCO has reported three consecutive quarters of double-digit growth in firewall units, supported by new high-end firewall platforms [12] - The company is embedding AI deeper into its security offerings, enhancing its capabilities to address advanced threats [12] - CSCO's earnings estimates for fiscal 2026 and 2027 have been revised upward, with current estimates at $4.13 and $4.46, respectively [17] Market Performance - Over the past six months, CSCO shares have increased by 17.2%, while PANW shares have decreased by 17.7% [19] - CSCO is trading at a forward sales multiple of 4.95X, which is lower than PANW's 9.31X, making CSCO more attractive for value-seeking investors [21] Conclusion - The analysis suggests that CSCO presents a more compelling investment opportunity due to its steady execution, strong product adoption, and favorable earnings revisions, while PANW faces near-term risks from integration costs and share dilution [23][24]

Palo Alto Networks Announces Offer to Purchase Relating to CyberArk Software Ltd.'s 0.00% Convertible Senior Notes due 2030 [Accessibility Statement] Skip NavigationSANTA CLARA, Calif., Feb. 19, 2026 /PRNewswire/ -- Today, Palo Alto Networks, Inc. (NASDAQ: PANW) ("Palo Alto Networks") announced that, in connection with the closing of the transaction (the "Acquisition") contemplated by the Agreement and Plan of Merger, dated as of July 30, 2025, by and among Palo Alto Networks, CyberArk Software Ltd., a comp ...

Shares of Palo Alto Networks (NASDAQ: PANW) had a rough week, falling as much as 11.3%, according to data supplied by S&P Global Market Intelligence. As of 1:11 p.m. ET on Thursday, the stock was still down 9.9%. The catalyst that sent the cybersecurity specialist lower was the fallout from its earnings report and management's associated guidance. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the ...