10 Losing Stocks in an Otherwise Optimistic Market

5. Palo Alto Networks Inc. (NASDAQ:PANW)

Palo Alto tumbled by 6.82 percent on Wednesday to close at $152.35 apiece, as investors appeared to have already priced in a strong earnings performance in the second quarter of fiscal year 2026 prior to the official results.

In an updated report, Palo Alto Networks Inc. (NASDAQ:PANW) said that net income in the second quarter ending December 31 increased by 62 percent to $432 million from $267 million in the same period a year earlier. Total revenues jumped by 15 percent to $2.59 billion from $2.26 billion year-on-year.

In the six-month period, net income increased by 24 percent to $766 million from $618 million, while revenues jumped by 15 percent to $5.07 billion from $4.4 billion.

“We saw continued strength in platformizations, a trend that is accelerating due to AI—customers are keen to both modernize and normalize their cybersecurity stack, aligning them to our approach. We also saw steady and strong adoption of AI security, which we expect will be a long-term trend,” said Palo Alto Networks Inc. (NASDAQ:PANW) Chairman and CEO Nikesh Arora.

Looking ahead, Palo Alto Networks Inc. (NASDAQ:PANW) is targeting revenues in the range of $$11.28 billion to $11.31 billion, representing year-on-year growth of 22 to 23 percent. Diluted non-GAAP net income per share is also pegged at $3.65 to $3.70.

For the third quarter ending March, total revenues are projected at $2.941 billion to $2.945 billion, or an implied growth of 28 to 29 percent. Diluted non-GAAP EPS is expected at $0.78 to $0.80.