Compared to Estimates, Palo Alto (PANW) Q2 Earnings: A Look at Key Metrics

For the quarter ended January 2026, Palo Alto Networks (PANW) reported revenue of $2.59 billion, up 14.9% over the same period last year. EPS came in at $1.03, compared to $0.81 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.58 billion, representing a surprise of +0.5%. The company delivered an EPS surprise of +10.67%, with the consensus EPS estimate being $0.93.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• RPO (Remaining Performance Obligation): $16.00 billion versus the seven-analyst average estimate of $15.81 billion.
• Revenue- Product: $514 million compared to the $493.76 million average estimate based on 13 analysts. The reported number represents a change of +22% year over year.
• Revenue- Subscription and support: $2.08 billion versus the 13-analyst average estimate of $2.09 billion. The reported number represents a year-over-year change of +13.3%.
• Revenue- Subscription and support- Support: $676 million compared to the $677.57 million average estimate based on three analysts. The reported number represents a change of +12.2% year over year.
• Revenue- Subscription and support- Subscription: $1.4 billion versus the three-analyst average estimate of $1.41 billion. The reported number represents a year-over-year change of +13.9%.
• Product gross profit Non-GAAP: $402 million compared to the $387.92 million average estimate based on 10 analysts.
• Subscription and support gross profit Non-?GAAP: $1.57 billion versus $1.59 billion estimated by 10 analysts on average.
• Product gross profit GAAP: $399 million versus the two-analyst average estimate of $386.91 million.
• Subscription and support gross profit GAAP: $1.51 billion compared to the $1.54 billion average estimate based on two analysts.

View all Key Company Metrics for Palo Alto here>>>

Shares of Palo Alto have returned -11% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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