PANW Earnings Preview: Options Price In 11% Move as AI Trade Faces Its Next Test
PANW Earnings Preview: Options Price In 11% Move as AI Trade Faces Its Next Test
- Palo Alto Networks is scheduled to report earnings on Tuesday, June 2, after the market close.
- The results will either reinforce or degrade the bull narrative around the artificial intelligence trade.
- Options on PANW show an expected move of 34.15 points.
Palo Alto Networks to provide next test to the AI trade narrative
Palo Alto Networks is set to report earnings on Tuesday, June 2, after the market close. The results come after a series of earnings reports that strengthened the narrative around the AI trade, helping to lift the U.S. market to all-time highs.
Palo Alto Networks is deeply embedded in the AI trade, as the company uses precision AI to automate its cyber security infrastructure. The company uses an AI versus AI model, according to Palo Alto with its website stating “Defend against adversarial AI in real time, before it can attack enterprise networks and data.”
While technically a software as a service (SaaS) company, Palo Alto avoided much of the damage suffered by this segment of companies earlier this year when investors feared that software companies would see their products replaced by AI agent.
In fact, PANW has skyrocketed going into earnings, rising about 65% since the start of May. Investors started buying after Fortinet said fears about disruption from AI startups were overblown. Then came analyst upgrades, which built on momentum from a substantial share purchase from the company’s chief executive officer (CEO).
The surge in the stock price could set the stock up for a disappointment, given the extent of gains recently. If enthusiasm is met with solid results, however, it could keep the rally going. A lot will depend on the numbers PANW reports and its guidance.
What do investors expect?
So, what do investors expect? According to TradingView, analysts expect PANW to report earnings per share (EPS) of $0.79 on $2.94 billion in revenue. That would compare to last year when PANW reported EPS of $0.80 on $2.29 billion in revenue.
A key performance indicator that is Next-Generation Security Annual Recurring Revenue (NGS ARR) will also be under scrutiny. PANW is guiding that metric at $7.94 to $7.96 billion. A beat here could be big for the stock on the upside.
Trading PANW earnings
PANW traded with an implied volatility rank (IVR) of 113.9, meaning that volatility is highly elevated. Since early May, prices have maintained above the 9-day exponential moving average, with the EMA supporting prices several times during its ascent.
The expected move for earnings is +/- 34.15 points, or 11.36% of Monday’s closing price of 300.57. Based on Monday’s closing price the expected move would see the stock range from 334.72 on the upside to 266.42 on the downside.
Given the stock’s surge over the past month, a disappointing report could push the stock price down violently, since there hasn’t been a zone of consolidation. On the upside, there is little resistance due to the stock being at all-time highs. Nonetheless, there is plenty of volatility in the stock for those looking to take a bet on earnings.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastyfx, LLC (“tastyfx”) is a Commodity Futures Trading Commission (“CFTC”) registered Retail Foreign Exchange Dealer (RFED) and Introducing Broker (IB) and Forex Dealer Member (FDM) of the National Futures Association (“NFA”) (NFA ID 0509630). Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances as you may lose more than you invest.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2026 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.
Your privacy choices