Should You Buy Palo Alto Networks Stock Before Earnings?

The cybersecurity leader has a lot to prove.Palo Alto Networks (PANW +2.52%), one of the world's largest cybersecurity companies with more than 80,000 enterprise customers, will post its next earnings release on Feb. 17. Let's review its business model and see whether its stock is worth buying right now. Image source: Getty Images. What does Palo Alto do? Palo Alto splits its ecosystem into three main platforms: Strata, for on-site network security services; Prisma, for cloud-based security services; and Cortex, for AI-powered threat detection tools. Most of its recent growth has been driven by Prisma and Cortex, which it refers to as its "next-gen security" (NGS) services. It also recently acquired CyberArk, which protects companies against internal threats through its privileged access management (PAM) tools. From fiscal 2025 (which ended last July) to fiscal 2028, analysts expect its revenue and EPS to grow at CAGRs of 13% and 22%, respectively. That growth should be driven by the expansion of its NGS services and its "platformization" strategy -- in which it's weaving its three main ecosystems together to reduce its fragmentation and improve its operating efficiency. That outlook seems promising, but Palo Alto's stock isn't a bargain at 83 times this year's earnings. It could also face intense competition from diversified tech giants such as Microsoft (MSFT 0.16%) and cloud-first rivals such as CrowdStrike (CRWD +4.42%) over the next few years. Therefore, I'd personally wait to see how Palo Alto fares in its next earnings report -- and what it tells us about its recent acquisitions -- before pulling the trigger.Read NextFeb 11, 2026 •By Will HealyWhere Will Palo Alto Networks Be in 1 Year?Feb 4, 2026 •By Adam Levy3 No-Brainer Growth Stocks to Buy With $250 Right NowFeb 1, 2026 •By James HiresThis Security Leader Is Turning Surging Cyber Threats Into Recurring RevenueJan 27, 2026 •By Dave KovaleskiForget Applied Digital: This Cybersecurity Platform Giant Is the Smarter Bet on Securing All Those AI Data CentersJan 22, 2026 •By Chris Neiger2 Top Cybersecurity Stocks to Buy in JanuaryJan 12, 2026 •By Sean Williams2 Nasdaq-100 Stocks That Are No-Brainer Buys in 2026, and 1 to AvoidAbout the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedPalo Alto NetworksNASDAQ: PANW$166.91 (+2.52%) $+4.10MicrosoftNASDAQ: MSFT$401.20 (0.16%) $0.64CrowdStrikeNASDAQ: CRWD$429.75 (+4.42%) $+18.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.