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Palo Alto Networks (PANW) has an average rating of overweight and mean price target of $397.79, according to analysts polled by FactSet.
Zscaler's (ZS) fiscal 2027 outlook is conservative and reflects factors including an expected loss of Red Canary's customers and the competitive artificial intelligence security environment, Oppenheimer said in a note emailed Friday.Late Thursday, the cloud security company reported fiscal fourth-quarter results above Wall Street's consensus and outlined a strong full-year outlook.Zscaler expects annual recurring revenue of $4.396 billion to $4.426 billion, reflecting year-over-year growth of 16.6% to 17.4%. The FactSet-polled consensus points to $4.40 billion in fiscal 2027.The Red Canary business, acquired by Zscaler in 2025, saw elevated churn in 2026, Chief Financial Officer Kevin Rubin said on an earnings conference call Thursday, according to a FactSet transcript."As it relates to accounts that are up for renewal, ... we'll continue to see the higher, more traditional churn rates of (a managed detection and response) business," Rubin told analysts.Management took "a prudent approach" to the fiscal 2027 outlook, Oppenheimer analysts, including Ittai Kidron said. "We remain bullish, expecting better execution against achievable (2027) targets and reiterate our positive stance considering the setup and valuation," Kidron wrote.Red Canary's integration and competitive headwinds, among other areas, could limit investor confidence in the near term, the brokerage said.AI security is in demand, and there are "lots and lots of" companies competing in the space, with "probably tons of startups as well," Chief Executive Jay Chaudhry said on the call."We expect investors to take a 'wait-and-see' approach while viewing the outlook as achievable and supportive of consistent execution and positive revisions through (fiscal 2027)," Kidron said.Shares of the company declined 4.6% in Friday trade, and have fallen nearly 25% this year.Zscaler projects full-year adjusted earnings of $4.86 to $4.90 on revenue between $3.91 billion and $3.94 billion. Market expectations are for $4.82 and $3.92 billion, respectively.Oppenheimer raised Zscaler's adjusted EPS estimate to $4.88 from $4.42 for 2027 and left the revenue outlook steady at $3.9 billion. The brokerage has an outperform rating on Zscaler's stock with a $250 price target.Cybersecurity firm Palo Alto Networks (PANW) reported a fiscal fourth-quarter beat Tuesday, though its guidance for adjusted EPS and revenue topped analysts' estimates. Last week, CrowdStrike (CRWD) raised its full-year net new ARR outlook amid increasing demand for cybersecurity solutions to address AI risks.Price: $169.88, Change: $-7.92, Percent Change: -4.45%
(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes rose on Wednesday as government bond yields fell and crude oil climbed amid concern that hostilities between Washington and Tehran are taking a turn for the worse.The Nasdaq Composite rose 0.5% to 26,217.83, the S&P 500 climbed 0.5% to 7,666.60, and the Dow Jones Industrial Average advanced 0.6% to 53,061.95.All sectors, except real estate, rose. Materials and communication services topped the gainers.The additional strikes Tuesday on Iran led to Tehran attacking Jordan, Bahrain and Kuwait even though US President Donald Trump had warned that Iran would be "hit much harder" if it retaliated to the first strikes in over a month. "They will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!" Trump posted on Truth Social on Tuesday.US Secretary of State Marco Rubio said Iran will "continue to feel the squeeze" from the United States until it drops any nuclear weapons ambitions and ends support for armed groups in the Middle East, the Associated Press reported.The Iran Revolutionary Guards Corps said two oil tankers exploded after hitting a mine and are now on fire, Al Jazeera, a Middle Eastern broadcaster, reported Wednesday.The Iranian attacks "constitute a flagrant violation of sovereignty," the United Arab Emirates' Foreign Ministry said in a statement, Al Jazeera reported. The ministry reiterated its "support for all measures aimed at safeguarding" the "security and stability" of countries pulled into the war, the news report said.The front-month US West Texas Intermediate crude oil contract rose 0.6% to $90.75 per barrel, and global benchmark North Sea Brent climbed 0.8% to $95.37 per barrel. Both crude types were down by more than 0.5% earlier in the session.Most US Treasury yields fell. The 10-year yield declined 1.6 basis points to 4.78%. The two-year yield declined 2.7 basis points to 4.37%.Gold futures advanced 0.9% to $4,436.3, and silver futures marched 0.9% higher to $65.94.Meanwhile, ADP's monthly measure of private payrolls showed a 38,000 increase in August, below a 47,000 gain expected in a Bloomberg-compiled survey, following a 46,000 increase in July. Service-providing jobs climbed 48,000, with education and health services jobs up 45,000, while manufacturing sector jobs contracted 17,000."Pay can tell us a lot about today's choppy hiring," said Nela Richardson, chief economist at ADP. "To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it's slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI's effects on jobs."New orders for US factory goods rose 0.9% in July, above expectations for a 0.7% increase in a survey compiled by Bloomberg and following a 0.2% decrease in June. Excluding a 2.3% increase in transportation orders, new orders would have been up 0.6% after a 0.1% decline in June.Dell Technologies (DELL) jumped 16%, the top gainer on the S&P 500, after the company reported higher fiscal Q2 non-GAAP adjusted earnings and revenue, and raised its fiscal 2027 guidance.Palo Alto Networks (PANW) sank 9.3%, the worst performer on the S&P 500 and the Nasdaq, as the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.
(Updates with market moves at the end of the day, and other changes, if any.)US equities rebounded Wednesday following a three-day fall, as Treasury yields edged lower after climbing to multiyear highs.The Dow Jones Industrial Average gained 0.6% to close at 53,061.95. The S&P 500 and the Nasdaq Composite rose 0.5% each to 7,666.60 and 26,217.83, respectively. Except real estate, all sectors were in the green, led by materials.Treasury yields were lower, with the two-year yield down 2.3 basis points at 4.37% and the 10-year yield falling 1.6 basis points to 4.78%. Earlier on Wednesday, the 10-year rate hit 4.818%, its highest level since November 2023, CNBC reported."While easing slightly after hitting multi-year peaks, yields remain elevated," Stifel said in a note on Wednesday.Iran has expanded the number of vessels it says must not sail through the Strait of Hormuz, Reuters reported Wednesday.The US Central Command said Tuesday that its forces completed a wave of strikes against Iranian military targets. Iran reportedly launched retaliatory attacks on Kuwait, Jordan and Bahrain.West Texas Intermediate crude oil was up 0.6% at $90.75 a barrel in Wednesday late-afternoon trade, while Brent advanced 0.8% to $95.37. Both benchmarks were off the day's peaks.In company news, shares of Dell Technologies (DELL) surged nearly 16%, the best performer on the S&P 500, after the company's fiscal second-quarter results beat Wall Street's estimates.Dell's latest results and guidance indicated "broad-based strength," though there are concerns that artificial intelligence-driven compute and storage growth may decelerate sharply in fiscal 2028 or 2029 amid rising prices, UBS Securities said in a note.Palo Alto Networks (PANW) slumped 9.3%, the steepest decline on the S&P 500, as the cybersecurity firm's fiscal fourth-quarter adjusted gross margin declined year over year.Brown-Forman (BF.A, BF.B) reiterated its guidance for fiscal 2027 organic sales on Wednesday as it flagged continuing consumer headwinds that drove weaker-than-expected first-quarter top-line. The company's class A and B shares were up 3.4% and 3.9%, respectively.In economic news, US private sector employment grew at its slowest pace in seven months in August, ADP (ADP) data showed, ahead of the official jobs report due on Friday.Data from the Bureau of Labor Statistics are likely to show Friday that the US economy added 55,000 nonfarm jobs last month, compared with a drop of 23,000 for July, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.1%.Spot gold rose 1.4% to $4,388.30 per troy ounce, while silver advanced 0.8% to $65.92 per ounce.
US equity indexes ended higher Wednesday after government bond yields fell despite Iran's retaliatory attacks across the Middle East.* The additional strikes on Iran on Tuesday led to Tehran attacking Jordan, Bahrain and Kuwait even though US President Donald Trump had warned that Iran would be "hit much harder" if it retaliated to the first strikes.* ADP's monthly measure of private payrolls showed a 38,000 increase in August, below a 47,000 gain expected in a Bloomberg-compiled survey.* New orders for US factory goods rose 0.9% in July from a 0.2% decrease in June, above expectations for a 0.7% increase in a survey compiled by Bloomberg.* October West Texas Intermediate crude oil rose $0.60 to settle at $90.82 per barrel, while November Brent crude, the global benchmark, was last seen up $0.75 at $95.40.* Dell Technologies (DELL) shares rose roughly 16%, the top gainer on the S&P 500, after the company reported higher fiscal Q2 results and raised its fiscal 2027 guidance.* Palo Alto Networks (PANW) shares were down about 9.3%, the worst performer on the S&P 500 and the Nasdaq, after the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.
Tech stocks were mixed late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) decreasing 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 0.8%.The Philadelphia Semiconductor index rose 0.4%.In corporate news, Palo Alto Networks (PANW) shares fell 10% after the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.A judge in federal district court in Virginia on Wednesday rejected the United States' proposed structural remedies that would require Alphabet's (GOOGL) Google to sell AdX, its advertising exchange, according to court documents. Alphabet shares were up 0.8%.Dell (DELL) shares jumped 15% after it reported higher fiscal Q2 non-GAAP adjusted earnings and revenue, and raised its fiscal 2027 guidance.Microsoft-backed (MSFT) OpenAI was hit with multiple lawsuits Wednesday alleging that the AI company could have done more to help prevent a school shooting earlier this year in Canada by informing law enforcement of the suspected killer's activity on ChatGPT, according to media reports. Microsoft shares were down 0.8%.
Tech stocks were mixed late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) decreasing 0.1% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 0.8%.The Philadelphia Semiconductor index rose 0.4%.In corporate news, Palo Alto Networks (PANW) shares fell 10% after the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.
(Updates with latest market prices and developments.)US benchmark equity indexes were higher intraday as a rally in Treasury yields lost steam, while commodity traders continued to track developments in the US-Iran conflict.The S&P 500 was up 0.4% at 7,661.4 after midday Wednesday. The Dow Jones Industrial Average and the Nasdaq Composite gained 0.3% each to 52,947.5 and 26,182.3, respectively. The indexes finished Tuesday trading in the red for the third consecutive session.Most sectors were in the green intraday, led by materials, while real estate saw the steepest decline.Treasury yields were little changed intraday, with the two-year yield at 4.39% and the 10-year yield at 4.79%. Earlier Wednesday, the 10-year rate hit 4.818%, its highest level since November 2023, CNBC reported."While easing slightly after hitting multi-year peaks, yields remain elevated," Stifel said in a note on Wednesday.Iran has expanded the number of vessels it says must not sail through the Strait of Hormuz, Reuters reported Wednesday.The US Central Command said Tuesday that its forces completed a wave of strikes against Iranian military targets. Iran reportedly launched retaliatory attacks on Kuwait, Jordan and Bahrain.West Texas Intermediate crude oil was up 1.1% at $91.17 a barrel intraday Wednesday, while Brent advanced 1.2% to $95.81.In company news, shares of Dell Technologies (DELL) were up 9.2% intraday, the best performer on the S&P 500, after the company's fiscal second-quarter results beat Wall Street's estimates.Palo Alto Networks (PANW) slumped nearly 11%, the steepest decline on the S&P 500, as the cybersecurity firm's fiscal fourth-quarter adjusted gross margin declined year over year.Brown-Forman (BF.A, BF.B) reiterated its guidance for fiscal 2027 organic sales on Wednesday as it flagged continuing consumer headwinds that drove weaker-than-expected first-quarter top-line. The company's class A and B shares were up 3.2% and 3.4%, respectively.Broadcom (AVGO), Snowflake (SNOW), Hewlett Packard Enterprise (HPE) and Five Below (FIVE) are scheduled to release their quarterly results after markets close Wednesday.In economic news, US private sector employment grew at its slowest pace in seven months in August, ADP (ADP) data showed, ahead of the official jobs report due on Friday.Data from the Bureau of Labor Statistics are likely to show Friday that the US economy added 55,000 nonfarm jobs last month, compared with a drop of 23,000 for July, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.1%.Spot gold rose 0.9% to $4,368.15 per troy ounce, while silver edged up 0.1% to $65.44 per ounce.
Can-Fite BioPharma (CANF) agreed to immediately exercise warrants for up to about 1.6 million American depositary shares at $2.50 each, expected to generate about $4 million in gross proceeds, the company said Wednesday.Shares slumped 25% as intraday trading volume catapulted to over 19.5 million from a daily average of about 1.41 million.G-III Apparel's (GIII) shares slumped 10% after the company reported lower fiscal Q2 net sales.More than 968,000 shares traded intraday compared with a daily average of about 566,000.Palo Alto Networks (PANW) sank 11% amid heavy trading as the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.Intraday trading volume soared to over 8.61 million from the stock's daily average of roughly 6.81 million.Price: $2.44, Change: $-0.85, Percent Change: -25.81%
(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes rose after midday Wednesday, while government bond yields slipped and crude oil prices advanced amid a worsening of hostilities against Iran.The Nasdaq Composite rose 0.3% to 26,177.4, the S&P 500 climbed 0.4% to 7,660.9, and the Dow Jones Industrial Average advanced 0.4% to 52,955.4. All sectors, except consumer discretionary and real estate, rose. Communication services and materials topped the gainers.The additional strikes Tuesday on Iran led to Tehran attacking Jordan, Bahrain and Kuwait even though US President Donald Trump had warned that Iran would be "hit much harder" if it retaliated to the first strikes in over a month. "They will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!" Trump posted on Truth Social on Tuesday.The Iran Revolutionary Guards Corps said two oil tankers exploded after hitting a mine and are now on fire, Al Jazeera, a Middle Eastern broadcaster, reported Wednesday.The front-month US West Texas Intermediate crude oil contract rose 0.7% to $90.89 per barrel, and global benchmark North Sea Brent climbed 1% to $95.61 per barrel. Both crude types were down by more than 0.5% earlier in the session.Most US Treasury yields slipped, albeit moderately. The 10-year yield edged down by less than one basis point to 4.8%. The two-year yield slipped less than one basis point to 4.39%.Gold futures advanced 0.4% to $4,415.3, and silver futures marched 0.2% higher to $65.52.Meanwhile, ADP's monthly measure of private payrolls showed a 38,000 increase in August, below a 47,000 gain expected in a Bloomberg-compiled survey, following a 46,000 increase in July. Service-providing jobs climbed 48,000, with education and health services jobs up 45,000, while manufacturing sector jobs contracted 17,000."Pay can tell us a lot about today's choppy hiring," said Nela Richardson, chief economist at ADP. "To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it's slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI's effects on jobs."New orders for US factory goods rose 0.9% in July, above expectations for a 0.7% increase in a survey compiled by Bloomberg and following a 0.2% decrease in June. Excluding a 2.3% increase in transportation orders, new orders would have been up 0.6% after a 0.1% decline in June.Dell Technologies (DELL) jumped 9.4%, the top gainer on the S&P 500, after the company reported higher fiscal Q2 non-GAAP earnings and revenue, and raised its fiscal 2027 guidance.Palo Alto Networks (PANW) sank 11%, the worst performer on the S&P 500 and the Nasdaq, as the cybersecurity firm's fiscal Q4 adjusted gross margin declined year over year.
All three major US stock indexes were up in late-morning trading Wednesday, as the recent run-up in Treasury yields eased.In company news, Dell Technologies (DELL) reported fiscal Q2 adjusted earnings late Tuesday of $7.04 per diluted share, up from $2.32 a year earlier and above the FactSet consensus analyst estimate of $4.91. Fiscal Q2 revenue was $46.97 billion, up from $29.8 billion a year ago and above the FactSet consensus of $44.89 billion. For fiscal Q3, the company expects adjusted EPS of $6.50 on revenue of $49 billion. Analysts polled by FactSet expect $4.46 and $41.36 billion, respectively. For the full year, Dell expects adjusted EPS of $25.50 on revenue of $192 billion, up from its previous guidance of adjusted EPS of $17.90 on revenue of $167 billion and above the FactSet consensus of $18.99 and $174 billion, respectively. Dell shares were up 4.9% around midday.Uber Technologies (UBER) is laying off about 10% of its workforce as part of a restructuring plan, Chief Executive Dara Khosrowshahi said Wednesday in an email to employees that was shared on the company website. Uber had about 34,000 employees at the end of 2025, according to a regulatory filing. Uber shares were up 1.4%.Nvidia (NVDA) is in late-stage talks to buy Hugging Face, an artificial intelligence startup, in a deal that may total about $14 billion, Bloomberg reported Wednesday, citing people familiar with the matter. The companies may strike a deal as early as this week that could include a $1 billion retention package for Hugging Face workers, the report said, citing one of the people. Nvidia shares were up 4.1%.Palo Alto Networks (PANW) reported fiscal Q4 adjusted EPS late Tuesday of $1.02, up from $0.95 a year earlier and above the FactSet consensus of $0.98. Fiscal Q4 revenue was $3.41 billion, up from $2.54 billion a year ago and above the FactSet consensus of $3.35 billion. For fiscal Q1, the company expects adjusted EPS of $0.96 to $0.98 on revenue of $3.30 billion to $3.31 billion, above the FactSet consensus of $0.93 and $3.22 billion, respectively. For fiscal 2027, the company expects adjusted EPS of $4.16 to $4.19 on revenue of $14.10 billion to $14.20 billion, above the FactSet consensus of $4.10 and $13.84 billion, respectively. Additionally, Palo Alto Networks said late Tuesday it acquired Console, an AI-native platform that enables agentic capabilities. Financial terms were not disclosed. Palo Alto shares were down 8.1%.Gitlab (GTLB) reported Q2 adjusted EPS late Tuesday of $0.24, unchanged from a year earlier and above the FactSet consensus of $0.18. Second-quarter revenue was $286.3 million, up from $236.0 million a year ago and above the FactSet consensus of $273.1 million. For Q3, Gitlab expects adjusted EPS of $0.19 to $0.20 on revenue of $281 million to $283 million, above the FactSet consensus of $0.18 and $280.9 million, respectively. For fiscal 2027, the company expects adjusted EPS of $0.85 to $0.87 on revenue of $1.129 billion to $1.133 billion, above the FactSet consensus of $0.81 and $1.12 billion, respectively. Gitlab shares were up 17.4%.Price: $445.24, Change: $+20.24, Percent Change: +4.76%
(Update include analyst commentary.)RBC raised Palo Alto Networks' (PANW) price target to $475 from $434 on reporting strong quarterly results relative to elevated investor expectations.Palo Alto "showed quarter showed broad-based strength across all platforms, with recent acquisitions tracking ahead of plan as AI reshapes the threat landscape and could be a significant LT tailwind," analysts led by Matthew Hedberg wrote in a Wednesday note.Analysts at RBC also highlighted their confidence in consolidation momentum and the multiple AI opportunities the company has.Palo Alto Networks has an average rating of overweight and mean price target of $383.86, according to analysts polled by FactSet.Price: $331.49, Change: $-30.60, Percent Change: -8.45%
Palo Alto Networks' (PANW) position as a "cybersecurity consolidator" combined with accelerating platformization and emerging artificial intelligence tailwinds support the company's growth outlook, RBC Capital Markets said in a Wednesday note.RBC said Palo Alto Networks added about $970 million of net new annual recurring revenue from its next-generation security business in Q4, nearly doubling year over year, while annual recurring revenue from the business reached $9.1 billion, up 63% year over year.The firm said platformization is compounding as deeper customer commitments drive bigger deals, better retention and accelerating annual recurring revenue growth.RBC also said AI is emerging as a multi-vector tailwind, with Prisma AIRS reaching about $120 million in annual recurring revenue and over 800 customers within four quarters of general availability.RBC analysts also noted that CyberArk integration is running three to six months ahead of schedule on synergies, while Chronosphere's annual recurring revenue has more than doubled since closing.RBC maintained its outperform rating on Palo Alto Networks and raised its price target to $475 from $434.Shares of Palo Alto Networks were 8% lower in Wednesday trading.Price: $333.90, Change: $-28.19, Percent Change: -7.79%
Palo Alto Networks' (PANW) fiscal Q4 results showed the company is seeing the AI cyber risk threat environment as a "meaningful" catalyst, Morgan Stanley said in a note Wednesday."FQ4 cleared most top-line bogeys, with particular strength in network, identity, observability," the report said.The report said enterprises need to address technical debt and secure AI implementations amid rising cyber risk threat, with the firm putting over $1 trillion of technical debt to be addressed."With PANW having single digit share of the cyber TAM, and growing parts of the TAM they are addressing, we don't seeopportunity as capped for the name," the note said.Morgan Stanley kept its overweight rating and lifted its price target to $394 from $387.Price: $336.24, Change: $-25.86, Percent Change: -7.14%
Palo Alto Networks (PANW) has an average rating of overweight and mean price target of $388.93, according to analysts polled by FactSet.Price: $330.51, Change: $-31.58, Percent Change: -8.72%
The main US stock measures were trending lower in Wednesday's premarket activity amid escalating tensions in the Middle East and rising bond yields.The S&P 500 declined 0.2%, the Dow Jones Industrial Average edged down 0.1%, and the Nasdaq was off 0.5% before the opening bell. The indexes finished Tuesday trading in the red for the third consecutive session.The US Central Command said Tuesday that its forces completed a wave of strikes against Iranian military targets, following recent attempted attacks by the Islamic Revolutionary Guard Corps against commercial shipping in the Strait of Hormuz.Iran reportedly launched retaliatory drones and missiles on US bases in Kuwait, Jordan and Bahrain, according to multiple media outlets.West Texas Intermediate crude oil rose 0.3% to $90.50 a barrel in premarket action, while Brent increased 0.5% to $95.11.In a social media post on Tuesday, President Donald Trump said he's "not trying to force Iran" to resume negotiations with the US. "I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing," Trump wrote.Treasury yields were moving higher before the open, with the 10-year rate up 1.8 basis points to 4.81%, reportedly reaching its highest level since November 2023. The two-year rate inclined 0.8 basis points to 4.4%, while the 30-year yield gained 1.9 basis points to 5.29%."Higher yields are proving to be the stock market's undoing," Thierry Wizman, global foreign exchange and rates strategist at Macquarie Group, said in a note e-mailed toon Tuesday. "They force analysts to discount higher earnings more aggressively, thus forcing (price-to-earnings) multiples downward."The Federal Reserve should tighten monetary policy unless inflation cools down, Governor Michael Barr said Tuesday, adding to a growing chorus of hawkish views from policymakers. Fed Chair Kevin Warsh said last week that the central bank's primary focus should be on prices, given that the US is doing well on the employment front.Wednesday's economic calendar has the weekly mortgage applications bulletin at 7 am ET, followed by the ADP Employment report for August at 8:15 am. The Fed's Beige Book, a compilation of economic and business reports from the 12 regional Fed branches, is out at 2 pm.Shares of Dell Technologies (DELL) spiked 9.3% pre-bell after the computer maker's fiscal second-quarter results beat Wall Street's estimates. Palo Alto Networks (PANW) retreated nearly 2% as the cybersecurity firm's fiscal fourth-quarter adjusted gross margin declined year over year.Credo Technology (CRDO) and MongoDB (MDB) fell 8.9% and 13%, respectively, following their latest financial results.Brown Forman (BF.A, BF.B), Ollie's Bargain Outlet (OLLI) and FuelCell Energy (FCEL) are expected to release their quarterly earnings before the bell, among others. Broadcom (AVGO), Snowflake (SNOW), Hewlett Packard Enterprise (HPE) and Five Below (FIVE) post their results after the markets close.Gold declined 0.9% to $4,365 per troy ounce, while bitcoin slipped 1% to $76,467.
Palo Alto Networks (PANW) fiscal fourth-quarter results came in ahead of Wall Street's estimates, but the cybersecurity firm's shares fell early Wednesday amid margin and cost pressures.Adjusted gross margin came in at 74.8% for the quarter ended July, down from 75.8% the year before, the company said late Tuesday. The stock decreased 1.8% in the most recent premarket activity.The decline reflected a mix shift toward Palo Alto's faster-growing software-as-a-service offerings, which continued to scale and "have yet to reach their gross margin maturity," Chief Financial Officer Dipak Golechha said during an earnings call, according to a FactSet transcript. "Looking ahead, the growing majority of revenue is cloud and SaaS, and we anticipate that mix shift will drive our cloud hosting costs faster than total revenue in fiscal year 2027," according to Golechha.The company expects rising commodity costs to persist in its hardware business, especially related to memory and storage, Golechha said on the call. "We continue to manage our component cost exposure through our strategic supplier relationships and selective pricing actions across our portfolio of hardware products," the CFO added.Palo Alto reported adjusted earnings of $1.02 a share for the fourth quarter, up from $0.95 in the prior-year quarter, ahead of the FactSet-polled consensus of $0.98. Revenue climbed 34% to $3.41 billion, topping the Street's view for $3.35 billion.Subscription and support revenue increased to $2.67 billion from $1.96 billion, while product sales gained to $738 million from $574 million. Next-generation security annual recurring revenue, or ARR, surged 63% on a yearly basis to $9.1 billion, surpassing the average analyst estimate of $8.93 billion."This performance is a direct result of record-breaking platformization adoption and the growing urgency among customers to fortify their defenses as (artificial intelligence) fundamentally redefines the security landscape," Chief Executive Nikesh Arora said on the call.The company expects AI tailwinds driving cybersecurity demand to intensify in the future, according to Arora. The development of global AI infrastructure is requiring trillions in investment, and the firm expects "more capital expenditure in the next five years than the preceding two decades," Arora told analysts."There is approximately $1 trillion of global cybersecurity debt that must be modernized to defend against automated threats," the CEO added.Last month, Morgan Stanley said in a client note that Palo Alto was among the cybersecurity companies positioned to benefit from a shift toward new identity-security architectures and platforms as the growing use of autonomous AI agents creates new security risks.For fiscal 2027, Palo Alto projects adjusted EPS to come in between $4.16 and $4.19 on a revenue range of $14.1 billion to $14.2 billion. The Street is looking for non-GAAP EPS of $4.14 and sales of $13.97 billion. In the previous fiscal year, adjusted EPS came in at $3.84 and revenue amounted to $11.48 billion.Next-generation security ARR is pegged at $11.08 billion to $11.18 billion for the ongoing fiscal year, representing annual growth of 22% to 23%. The market's current forecast is for $11.02 billion.Last week, rival CrowdStrike (CRWD) raised its full-year net new ARR outlook amid increasing demand for cybersecurity solutions to address AI risks, while the firm reported better-than-expected fiscal second-quarter results.For the first quarter, Palo Alto anticipates adjusted EPS of $0.96 to $0.98 on revenue of $3.3 billion to $3.31 billion. The current consensus on FactSet is for non-GAAP EPS of $0.95 and sales of $3.26 billion. Next-generation security ARR is seen at $9.54 billion to $9.56 billion, reflecting a year-over-year gain of 63%.
(Updates with market moves at the end of the day, and other changes, if any.)US equity benchmarks fell for a third straight session on Tuesday as traders fretted over surging oil prices and bond yields.The Nasdaq Composite closed 1% lower at 26,099.77, while the Dow Jones Industrial Average declined 0.8% to 52,766.88. The S&P 500 lost 0.7% to 7,631.47. Most sectors were in the red, led by consumer discretionary, while energy paced the gainers.West Texas Intermediate crude oil jumped 5.7% to $90.63 a barrel in Tuesday late-afternoon trade, while Brent advanced 5.1% to $95.11.The US military launched fresh attacks on Iran, striking Islamic Revolutionary Guard Corps targets, the US Central Command said Tuesday in a post on social media platform X.Iran vowed to retaliate and would "deliver crushing and devastating blows" against the "American enemy," state broadcaster IRIB reported, according to CNN.The latest US military actions came after Iran attacked US bases in Jordan, in retaliation for Washington striking Iranian rocket launchers on Tehran's Larak Island on Sunday.US Treasury yields jumped, with the 10-year rate up 3.4 basis points at 4.79%, reaching its highest level since January 2025. The two-year yield rose 4.4 basis points to 4.39%."Higher yields are proving to be the stock market's undoing," Thierry Wizman, global foreign exchange and rates strategist at Macquarie Group, said in a note e-mailed to. "They force analysts to discount higher earnings more aggressively, thus forcing (price-to-earnings) multiples downward."Markets are now pricing in a 68% probability that the Federal Reserve will increase its benchmark lending rate by 25 basis points later this month, compared with about 40% a week ago, according to the CME FedWatch tool. The probability that the Fed will keep interest rates steady fell to 32% from 60%.The Fed should tighten monetary policy unless inflation cools down, Governor Michael Barr said Tuesday, adding to a growing chorus of hawkish views from policymakers. Fed Chair Kevin Warsh said Friday that the central bank's primary focus should be on prices, given that the US is doing well on the employment front.In economic news, the US manufacturing sector continued to expand in August, with an Institute for Supply Management survey pointing to a slight deceleration sequentially and S&P Global (SPGI) data indicating a steady growth rate.Official data are expected to show Friday that US economy added 55,000 nonfarm jobs in August, according to a Bloomberg-polled consensus. Employment unexpectedly fell in July amid a marked decline in government payrolls.In company news, Nio (NIO) posted a 69% year-over-year increase in its second-quarter revenue amid growth in vehicle deliveries, which are expected to continue rising in the ongoing quarter. The Chinese electric vehicle maker's American depositary receipts fell 4%.Palo Alto Networks (PANW) shares declined 5.2%. The company released its quarterly results after the closing bell Tuesday.Spot gold lost 2.5% to $4,328.41 per troy ounce, while silver dropped 3.4% to $64.72 per ounce.
(Updates with latest market prices and developments.)US benchmark equity indexes were lower intraday, as surging oil prices and bond yields kept inflation-wary traders on the edge.The Nasdaq Composite was down 1% at 26,113.9 after midday Tuesday. The Dow Jones Industrial Average shed 0.8% to 52,752.6, while the S&P 500 lost 0.7% to 7,633.2. The indexes finished the previous trading session lower.Among sectors, consumer discretionary led the laggards intraday Tuesday, while energy paced the gainers.West Texas Intermediate crude oil jumped 4.4% to $89.57 a barrel, while Brent advanced 3.9% to $94.04.The US military launched fresh attacks on Iran, striking Islamic Revolutionary Guard Corps targets, the US Central Command said Tuesday in a post on social media platform X.Washington is striking "Iranian targets" near the Strait of Hormuz, US President Donald Trump said Tuesday."If the failed nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level," Trump said in a social media post.The latest US military actions came a day after Iran reportedly attacked US bases in Jordan and the United Arab Emirates, in retaliation for Washington striking Iranian rocket launchers on Tehran's Larak Island.US Treasury yields jumped intraday Tuesday, with the 10-year rate up 3.2 basis points at 4.79%, reaching its highest level since January 2025. The two-year yield rose 3.9 basis points to 4.39%.Government borrowing costs are surging "as rising oil prices continue to fuel inflation concerns and as investors increase expectations for firmer (Federal Reserve) policy," Stifel said in a note to clients.Markets are now pricing in a 68% probability that the US central bank will increase its benchmark lending rate by 25 basis points later this month, compared with about 40% a week ago, according to the CME FedWatch tool. The probability that the Fed will keep interest rates steady fell to 32% from 60%.The Fed should tighten monetary policy unless inflation cools down as hoped, Governor Michael Barr said Tuesday, adding to a growing chorus of hawkish views from policymakers. In his debut Jackson Hole speech as Fed chief on Friday, Kevin Warsh said that the central bank's primary focus should be on prices, given that the US is doing well on the employment front.In economic news, the US manufacturing sector continued to expand in August, with an Institute for Supply Management survey pointing to a slight deceleration sequentially and S&P Global (SPGI) data indicating a steady growth rate.In company news, Nio (NIO) posted a 69% year-over-year increase in its second-quarter revenue amid growth in vehicle deliveries, which are expected to continue rising in the ongoing quarter. The Chinese electric vehicle maker's American depositary receipts were down 4.5% intraday.Palo Alto Networks (PANW) shares fell 6.1%, among the worst performers on the S&P 500.Palo Alto is scheduled to report its latest quarterly financial results after the closing bell Tuesday, along with Dell Technologies (DELL), MongoDB (MDB) and others.Spot gold was down 2.1% at $4,344.51 per troy ounce, while silver dropped 2.4% to $65.40 per ounce.
(Updates with economic data, recent oil price movement, world markets' overview and corporate stock movements.)US equity futures were edging lower pre-bell Tuesday as concerns about inflation and higher oil prices lifted global bond yields while technology-related stocks slipped.Dow Jones Industrial Average futures were 0.6% lower, S&P 500 futures were down 0.6%, and Nasdaq futures were 1.2% lower.The US 10-year Treasury note yield reached a 20-month high, rising 3 basis points to trade at 4.7880%, while borrowing costs in Japan and the UK attained multi-decade highs.Traders digested the latest round of earnings, with Medtronic (MDT) posting higher fiscal Q1 adjusted earnings and revenue.Palo Alto Networks (PANW) is expected to report its fiscal Q4 results after the market closes. Analysts polled by FactSet expect earnings of $0.98 per share on revenue of $3.35 billion.Oil prices were higher, with front-month global benchmark North Sea Brent crude up 4.8% at $92.65 per barrel and US West Texas Intermediate crude 2.8% higher at $88.16 per barrel.The final S&P Global manufacturing purchasing managers index for August, due at 9:45 am ET, is seen at 53.4, up from its prior value of 53.2, according to estimates compiled by Bloomberg.The August Institute for Supply Management's manufacturing index, due at 10 am ET, is projected at 55.2, down from 55.6 in the previous month. July job openings from the US Department of Labor's Job Openings and Labor Turnover Survey are expected at 7.313 million, compared with 7.359 million in the prior month. The July construction spending report is also due at 10 am ET.In other world markets, Japan's Nikkei closed 0.2% lower, Hong Kong's Hang Seng ended 0.9% lower, and China's Shanghai Composite finished 0.2% lower. Meanwhile, the UK's FTSE 100 was down 0.6%, and Germany's DAX index was 1% lower in Europe's early afternoon session.In equities, stocks of Nvidia (NVDA), Amazon (AMZN), and Micron Technology (MU) were all down as part of a wider downswing in the technology sector. Nvidia shares dropped 1.5%, Amazon stock was 1.6% lower, and Micron Technology shares were down 2.3%.On the winning side, Medtronic stock was up 2.5% after the company's fiscal Q1 adjusted earnings and revenue surpassed analysts' consensus. Novartis (NVS) shares rose 5.9% after the company said that phase 3 trials of remibrutinib showed significantly reduced annualized relapse rates compared with teriflunomide in adults with relapsing multiple sclerosis. Sony Group (SONY) stock was 2% higher after a Nikkei Asia report that the company's semiconductor division will build an artificial intelligence model for facility maintenance with Saudi Aramco.
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