PANW F3Q26 Preview: Looking Through M&A

Research evidence excerpt

PANW F3Q26 Preview: Looking Through M&A

1,295E markets, and similar to CRWD, has a management team with a proven track record for

2027 3,197E 3,282E 3,299E 3,600E 13,378E execution. There is more integration risk than before, mainly due to the size of recent

Prior — — — — 1,378E acquisitions, yet the stock is up 39% YTD (vs. the IGV down 11%), with shares trading

at 18x EV/NTM Recurring Revenue and about 37x EV/NTM FCF. Palo Alto Networks EPS ($)

(FY JUL) 1Q 2Q 3Q 4Q FY reports F3Q26 earnings on Tuesday, June 2, 2026, after market close.

2025 0.78 0.81 0.80 0.95 3.34

2026 0.93 1.03 0.80E 0.94E 3.69E "This was a very strong quarter with really good growth. Last year, we were

2027 0.92E 0.99E 1.00E 1.15E 4.05E underperforming with Palo so the growth was off an easier compare. The

number one strength right now is SASE. We saw healthy growth rates for

SASE and customers are adopting XSIAM and Cloud security..." - US Partner

Market Data & Valuation Measures Field Checks Lean Positive. Of the 6 partners we spoke with this quarter, 4 exceeded

52-Week Range $139.57 - $261.41 and 2 met quarterly expectations while pipelines leaned positive. Our conversations indicate

Shares Out (M) 816.0 a healthy demand environment across North America and Europe. One partner in North

Market Cap (M) $209,508 America (who met expectations) talked about some customers signing shorter-duration

Enterprise Value (M) $213,830 contracts as customers are dealing with budget constraints and price sensitivity from

ADV (3 mo; 000) 8,508 hardware prices. That same partner talked about their PANW business leaning heavily

into Software-based solutions, though the broader hardware noise (i.e., memory pricing

pressure) has impacted some spending patterns, resulting in pull-forward of Hardware