Will Palo Alto Networks continue its strong momentum in FQ3 after solid second quarter?
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Palo Alto Networks (NASDAQ:PANW) is scheduled to announce FQ3 earnings results on Tuesday, May 23rd, after market close.
Over the last 2 years, PANW has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 36 upward revisions and 0 downward. Revenue estimates have seen 0 upward revisions and 33 downward.
PANW in late February reported solid FQ2 results that blew past estimates. Furthermore, the cybersecurity company guided FQ3 billings of $2.20B to $2.25B, revenue of $1.695B to $1.725B, and adj. EPS of $0.90 to $0.94.
The results were cheered by investors who sent PANW's shares up more than 12%. Wedbush Securities had called the report and provided guidance "Aaron Judge-like," in a nod to the feared New York Yankees slugger.
"In (Q3), Palo Alto (PANW) is likely to have benefited from the strong momentum stemming from deal wins, which is expected to have boosted its top line. The strong demand for form factor hardware products, particularly machine learning-powered models that ensure zero-trust network security for organizations, is expected to have contributed to the quarterly performance," Zacks research said in an earnings preview last week.
Some of PANW's rivals have already reported their latest quarter results. Fortinet (FTNT) and Zscaler (ZS) announced strong numbers and guidance. Conversely, Check Point Software's (CHKP) performance was seen as disappointing, and so was Tenable's (TENB).
Cybersecurity companies in general have also seen greater demand for solutions to counter cyberattacks, the frequency of which has increased recently.
"The increased use of the cloud and remote networks amid a hybrid working environment has resulted in escalating cyberattacks currently. This is leading to a rise in the demand for cybersecurity solutions. PANWâs fiscal third-quarter performance is likely to have benefited from this demand surge," Zacks research said. 
Seeking Alpha contributor Zen Analyst in an analysis of PANW in late April said the company was "strategically positioned to capitalize on" growing demand in 2023 driven by an increasingly connected digital ecosystem and heightened cyber threats.
Palo Alto Networks (PANW) stock has gained 35.2% YTD.