Palo Alto Networks, Inc. (NASDAQ:PANW) is set to release its second-quarter earnings after Thursday's closing bell. Here's what to watch in the report.
What To Watch: The Street will be eager for updates on the Palo Alto Networks' shift from single-focus product delivery to its "platformization" approach.
Palo Alto CEO Nikesh Arora said the company's first-quarter results reinforced "conviction in our differentiated platformization strategy."
"We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes. I expect this will be a multiyear trend for which we are best positioned to deliver to our customers," Arora added.
Read More: Record-High Egg Prices Drive Inflation Higher In January
RBC Capital analyst Matthew Hedberg sees the platformization strategy as an "accelerator to consolidating cyber spend" and potentially bringing more market share to Palo Alto in a refresh cycle.
However, WestPark Capital analyst Casey Ryan expects revenue to come in below consensus estimates due to the strategy's impacts on gross margin and operating margin. WestPark's estimates look for revenue of $2.28 billion and EPS of 79 cents.
What Else: Investors will also be looking for updates on Palo Alto's Next-Generation Security annual recurring revenue and AI ARR.
According to estimates from Benzinga Pro, analysts expect the company to report quarterly earnings of 78 cents on revenue of $2.24 billion.
Several analysts updated coverage on Palo Alto Networks shares this week:
PANW Price Action: According to Benzinga Pro, Palo Alto Networks shares are flat at $196.74 at the time of publication Thursday.
Read Next:
Image: Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.