New York, Feb 5, 2026, 20:47 EST — Market closed.
- Palo Alto Networks (PANW) slipped 7.2% to $154.77, holding mostly steady in after-hours trading.
- The drop followed a widespread selloff in software stocks, as investors grew uneasy about AI disruption and rising expenses.
- Palo Alto unveiled an updated NextWave partner program. Its fiscal Q2 earnings are set for release Feb. 17, after the bell.
Palo Alto Networks (PANW) shares dropped 7.2% to end Thursday at $154.77, then slipped another 0.1% in after-hours trading. https://public.com/stocks/panw/after-hours
Palo Alto’s decline dragged it into the midst of a sharp selloff hitting U.S. software and data-services stocks, as investors wrestled with the impact of rapidly advancing AI tools on existing business models. “I would classify this as a sell-everything mindset at this point,” said Dave Harrison Smith, chief investment officer at Bailard. https://www.reuters.com/business/us-software-stocks-stabilize-after-bruising-selloff-ai-disruption-fears-2026-02-05/
Broader indexes slid sharply, led lower by tech giants after Alphabet warned of another year of heavy AI capital outlays. Investors are increasingly skeptical about when these costs will translate into actual revenue. “The AI trade… is perhaps the extinguisher this year,” said Melissa Brown, managing director of investment decision research at SimCorp. https://www.reuters.com/business/sp-nasdaq-futures-subdued-markets-digest-alphabets-ai-spending-plans-2026-02-05/
Cybersecurity shares tracked the broader market slide. CrowdStrike tumbled over 9%, Zscaler dropped more than 8%, and Fortinet slipped just above 2% in the session, per market summaries. https://www.nasdaq.com/articles/stocks-settle-lower-tech-and-crypto-are-routed
On Thursday, Palo Alto unveiled an updated NextWave partner program, shifting incentives to favor “platformization”—its strategy to push integrated security sales across network, cloud, and the SOC (security operations center). The company emphasized that the new program “rewards ‘platformization’ over transactions.” https://www.paloaltonetworks.com/company/press/2026/palo-alto-networks-nextwave-program-accelerates-partner-profitability-and-ai-driven-security-outcomes
Channel chief Michael Khoury told CRN the update brings bigger incentives and new AI-driven training for partners. “We transformed the entire incentive and rebates model for our partners,” Khoury said. https://www.crn.com/news/security/2026/palo-alto-networks-revamps-nextwave-program-5-biggest-updates
Palo Alto has set the date for its next major update. The company plans to report fiscal second-quarter results after U.S. markets close on Feb. 17. A webcast will follow at 4:30 p.m. ET. https://www.paloaltonetworks.com/company/press/2026/palo-alto-networks-to-announce-fiscal-second-quarter-2026-financial-results-on-tuesday–february-17–2026
Thursday’s action was harsh, and the near-term risk for PANW is clear: as the market pares back on expensive software, even good company updates might fall flat. If there’s any sign customers are delaying security initiatives, it could hit the stock hard in this environment.
Beyond its partner initiatives, Palo Alto’s threat-research unit caught eyes Thursday with new details on a sprawling cyberespionage operation. “They’re very much targeting and collecting… while staying right under that threshold of drawing too much attention,” Peter Renals, a principal security researcher with Palo Alto Networks’ Unit 42, told Axios. https://www.axios.com/2026/02/05/cyberespionage-government-hacking-campaign-palo-alto-networks
Looking ahead, macro events are on the move. The Labor Department’s Bureau of Labor Statistics now plans to release the January U.S. employment report on Feb. 11, disrupting the usual “first Friday” timing that markets expect. https://www.bls.gov/schedule/news_release/empsit.htm
PANW’s next key event remains company-specific: the February 17 earnings report and, crucially, the outlook that comes with it. Investors will scrutinize the guidance for signs it can stabilize the stock through late February—or signal that the decline will continue.
