NEW YORK, Feb 4, 2026, 3:38 PM EST — Regular session
- Palo Alto Networks shares edged higher in afternoon trading, rebounding from a steep decline the previous day
- The company scheduled its fiscal second-quarter results for Feb. 17, to be released after the market closes
- Cybersecurity stocks remain under pressure amid a wider software selloff driven by concerns over AI disruption
Palo Alto Networks, Inc. shares ticked up Wednesday, recovering a bit after a sharp fall the day before amid ongoing jitters in the software sector. The stock gained roughly 0.2% to $166.54, bouncing back from an earlier dip to $159.55.
The modest gain on Wednesday followed a 5.24% drop in Palo Alto shares on Tuesday, which closed at $166.23. That decline put the stock in line with the broader tech selloff, as investors brace for the company’s upcoming earnings report. (Yahoo Finance)
Tuesday’s selloff swept through software makers, rattling investors concerned that emerging AI tools might pressure business models and margins once thought resilient. “We’re seeing a lot of software companies across the spectrum get hit,” said Art Hogan, chief market strategist at B. Riley Wealth. (Reuters)
Palo Alto announced it will report fiscal second-quarter results for the period ending Jan. 31 after U.S. markets close on Tuesday, Feb. 17. The company plans to hold a video webcast later that same day. (Barchart)
Timing is crucial as the market gauges which software firms can hold prices and maintain steady renewals amid shifting AI-driven buyer demands. With Palo Alto, the focus is on how fast customers are trimming their toolkits and if big contracts drag out when budgets tighten.
The wider tech sector remains fragile. The recent drop in software shares came after AI company Anthropic rolled out a new “agent” tool designed to automate work tasks. Traders were also focused on U.S. ISM services data and ADP private payrolls on Wednesday. (Reuters)
Cybersecurity stocks diverged today. CrowdStrike dropped around 1.8%, Zscaler slid close to 0.8%, but Fortinet climbed roughly 2.3%.
The downside scenario is straightforward. CyberArk, the company Palo Alto has agreed to acquire, expects the deal to close in the third quarter of Palo Alto’s fiscal 2026, pending regulatory approvals — though that timing could change. CEO Matt Cohen noted that customers are focusing on identity security as they roll out “agentic AI,” systems capable of acting independently. (CyberArk)
Traders are keeping an eye on whether Palo Alto can maintain Wednesday’s modest rebound through the close and if the software selloff eases. The next major event on the calendar is Palo Alto’s earnings report on Feb. 17, along with the tone of its guidance.
