New York, February 24, 2026, 11:46 (EST) — Regular session
- Palo Alto Networks shares slipped roughly 0.5% on Tuesday, hitting a 52-week low earlier in the session.
- Cybersecurity stocks have swung wildly after Anthropic launched its code-security AI tool, shaking up software shares.
- Traders eye further analyst resets, with the company’s next earnings update slated for late May.
Palo Alto Networks (PANW.O) slipped roughly 0.5% to $143.39 as of 11:35 a.m. EST, not far from its earlier 52-week low at $142.43. The Nasdaq was up 0.8%, so the cybersecurity stock was underperforming tech peers. (Google)
Palo Alto’s situation is drawing attention, turning into a focal point for the entire “AI disrupts software” narrative—even in areas investors used to consider safer bets. Security budgets usually hold steady, but when that changes, it can catch traders off guard. Right now, they’re sorting out which parts of the workflow automation might cut, and which categories just see spending move around.
Cybersecurity names tumbled on Monday, with shares of Palo Alto dropping roughly 3% and losses at CrowdStrike and Datadog stretching to about 11%, after AI player Anthropic unveiled its latest security tool. Shrenik Kothari at Robert W. Baird described the rout as “a continuation of a panic-driven, narrative-led selloff.” Kothari pushed back on the market’s reaction, saying Anthropic’s launch isn’t a substitute for the real-time threat detection and incident response sold by established platform players. (Reuters)
Some corners of the broader market are beginning to question the narrative that AI will instantly transform enterprise workflows. “You definitely need human intervention, otherwise problems develop,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Ken Polcari of Slatestone Wealth pointed to a “shoot first, ask questions later” approach, with software stocks seesawing on each new AI headline. (Reuters)
Analysts aren’t letting up on a stock that’s already weighed down. Daiwa Securities trimmed its price target on Palo Alto to $175 from $212, holding on to its “outperform” rating, according to MT Newswires. The new target still suggests room for gains from here, but after the latest drop, the message is more cautious. (MarketScreener)
Palo Alto turned in fiscal second-quarter revenue of $2.6 billion last week, up 15%, with non-GAAP earnings hitting $1.03 a share. For fiscal 2026, the company projected revenue between $11.28 billion and $11.31 billion, and non-GAAP EPS in a range of $3.65 to $3.70. Those non-GAAP numbers exclude items like acquisition-related costs. Next-Generation Security ARR clocked in at $6.3 billion—a key subscription metric—while remaining performance obligations reached $16.0 billion, representing contracted revenue still on the books. (Palo Alto Networks)
Disruption risk isn’t the only headline here. On Monday, Nvidia announced it’s working with Palo Alto and several other partners to push accelerated computing and AI into the gritty world of operational technology cybersecurity—the backbone systems behind energy, manufacturing, and utilities. This is the part of the market where outages or breaches hit hard, fast, and in the real world. (NVIDIA Blog)
Right now, PANW faces the real possibility that the AI hype will keep triggering rapid revaluations, whether or not the company delivers. Should customers start seeing AI-powered code scanning as “good enough” for certain security layers—especially at a lower cost—platform providers might get squeezed on price and see some lines slow down, despite a backdrop of rising attacks.
Palo Alto’s next quarterly numbers drop May 26, and that’s the big one on the calendar. Investors want to see proof that platform deals, subscriptions, and those recent acquisitions are actually making a difference—billings and cash flow will be under the microscope. (The Wall Street Journal)
For now, traders are eyeing cybersecurity stocks to see if they stabilize after the AI-driven jolt, or if fresh target cuts and shifting “narrative” keep pressing the group lower.
