Palo Alto Could Deliver Quarterly Revenue Beat Amid Core Business Strength, Oppenheimer Says

03:22 PM EST, 11/10/2026 (MT Newswires) -- Palo Alto Networks' (PANW) fiscal first-quarter revenue could top Wall Street's estimates, aided by strength in its core businesses, Oppenheimer said Tuesday. The cybersecurity company has the potential to deliver upside to the Street's roughly $3.31 billion top-line views when it reports its latest quarterly results Nov. 18, the brokerage said. "Our checks suggest upside potential from CyberArk (and) Chronosphere and strength in Palo Alto's core businesses," Oppenheimer analysts, including Ittai Kidron, said in a note to clients. "We believe management will remain conservative with its (full-year) guidance and limit revisions to the beat." The company's shares were down 1.9% in Tuesday afternoon trade. The stock has gained 76% in value so far this year. Checks show "meaningful" progress integrating Palo Alto and CyberArk's sales teams, Oppenheimer said. The company completed its roughly $25 billion deal to acquire identity security firm CyberArk earlier this year. "This is pulling Idira into core Palo Alto platform deals faster than expected," the analysts said. "Also, Venafi's (certificate lifecycle management) is now sold as a firewall-attached subscription, benefiting network (and artificial intelligence) security (annual recurring revenue) growth." Oppenheimer expects Chronosphere to again deliver results ahead of targets as OpenAI's migration wraps up. "We expect another ($100 million-plus) observability (net new ARR) quarter as OpenAI completes its migration, moderating in (the second half)," the analysts said. While fading migration benefits could pressure compares next year, Datadog's (DDOG) recent results offer a positive read-through of OpenAI's overall observability demand, Oppenheimer said. This indicates potential for "sustained" strong results for the company in the near term, the analysts said. Checks on Palo Alto's Prisma AIRS offering showed it advancing from initial pilots into revenue-generating deployments, the brokerage said. "This aligns with the company's disclosure last quarter that AIRS surpassed $100 (million) ARR," the analysts said. "That said, most partners still view (2027) as the first significant revenue year, since AI security budgets are just now being set." Earlier this month, cloud and cybersecurity company Cloudflare (NET) reported that its third-quarter revenue growth accelerated year over year. Zscaler (ZS) and CrowdStrike (CRWD) are scheduled to report results next month. Price: 324.14, Change: -6.76, Percent Change: -2.04