New York, Feb 6, 2026, 20:52 EST — Market’s done for the day.
- Palo Alto Networks bounced back Friday, closing up 2.9% and recouping some ground after Thursday’s sharp fall.
- Pushing ahead with its “platformization” strategy, the company unveiled an updated NextWave partner program, this time zeroing in on bundled security offerings.
- Eyes are on the Feb. 17 earnings report, where investors will be watching for any signs on demand and margins.
Palo Alto Networks, Inc. bounced back Friday, shares finishing 2.9% higher at $159.32. That move clawed back some ground after the previous day’s drop, with investors eyeing changes to its partner program against a backdrop of choppy trading. During the session, shares moved between $151.78 and $161.54.
That bounce wrapped up a tough run for growth and software stocks, after major U.S. tech players hinted at more spending on artificial intelligence. Thursday saw the S&P 500 drop 1.23%, with the Nasdaq down 1.59%. Investors are still looking for clear signs that all this AI investment will actually filter through to profits. 1
Software names took a hit for another reason: jitters that rapidly advancing AI tech might eat into their pricing power and margins. The S&P 500 software and services index slid 4.6% on Thursday, putting it on pace to lose roughly $1 trillion in market value since Jan. 28. “I would classify this as a sell-everything mindset at this point,” said Dave Harrison Smith, Bailard’s chief investment officer and tech investing lead. 2
Some nerves stuck around Friday, but markets caught a break. The Dow pushed past 50,000 for the first time ever, while the S&P 500 climbed 1.97%—chip stocks were flying, and software names found their footing again. “There’s real demand for AI products,” Baird investment strategy analyst Ross Mayfield said. 3
Palo Alto is revamping its NextWave Partner Program, moving incentives away from just transaction volume and leaning instead into what the company dubs “platformization”—encouraging partners to get customers onto its integrated security platform that spans network, cloud, and SOC. It’s also flagging updates to rebates and tools like CPQ (that’s configure-price-quote). “Our partner ecosystem is more critical than ever,” said Chief Partnerships Officer Simone Gammeri. Orange Cyberdefense CEO Hugues Foulon called the shifts “a catalyst for deeper strategic collaboration and trust.” 4
Channel Chief Michael Khoury told CRN that Palo Alto has “transformed the entire incentive and rebates model.” He pointed to expanded training—among the additions, an “AI Roleplay” tool designed to mimic customer interactions. There’s also a new, tougher standard for leading partners aiming to push sales outside the core firewall segment. 5
Palo Alto slipped again Friday, after tumbling 7.17% the previous session. Thursday’s drop left it trailing multiple cybersecurity names as tech risk appetite dried up. 6
The sector bounced back Friday, moving up with the wider market. CrowdStrike picked up 4.86%, Fortinet tacked on 4.85%, Cisco finished higher by 2.99%, and Palo Alto Networks rose 2.94%, market data show. 7
Wall Street remains closed until Monday. Up next for the stock: fiscal second-quarter results from the company, set to land after U.S. markets wrap up on Tuesday, Feb. 17. That’s when the webcast kicks off—4:30 p.m. Eastern, per 8 .
Looking to the week ahead, traders are set to gauge if software’s bounce has legs, especially with the AI-spending debate still rocking the indexes. As for Palo Alto, it comes down to whether customer demand remains solid while companies reassess their security budgets—or if deals start slipping again.
Still, the partner-program overhaul is only on paper for now. Should bookings disappoint next week, or forecasts come in light—or if margin squeeze shows up—Friday’s rally could unravel quickly. Right now, the market’s shown little patience for anything that isn’t flawless.
Feb. 17 is the next big test: numbers roll out, the outlook’s in focus, and management will have to show how “platformization” is actually turning into concrete orders.
