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Palo Alto Networks (PANW) stock has been extending gains ahead of the cybersecurity firm’s Q4 earnings, which are scheduled to be released on Sept. 1 after market close. Consensus is for the multinational to record $0.51 in earnings per share (EPS) for its fourth quarter, which would represent a 21.43% increase on a year-over-year basis.
The earnings event arrives at a time when Palo Alto Networks shares have already been in a sharp uptrend, currently trading at more than 2x their price at the start of 2026.
Where Options Data Suggests PANW Stock Is Headed
While PANW is broadly expected to post a strong quarter, the options market believes the immediate reaction to its earnings report would be negative given the stock’s robust YTD performance.
The put-to-call ratio on contracts expiring Sept. 4 currently sits at 1.3x. A reading above 1x is typically interpreted as a bearish skew.
According to Barchart, the lower price on those options contracts is set at nearly $352, indicating potential for a 7.95% decline through the end of this week.
That said, Barchart does not agree with the derivatives market sentiment. It holds a “100% BUY” opinion on Palo Alto Networks stock, signaling technical momentum remains in its favor.
Evercore ISI Reiterates Bullish View on Palo Alto Networks
Joining Barchart’s optimistic outlook, Evercore ISI analyst Peter Levine reaffirmed its “Outperform” rating on PANW stock and a $415 price target ahead of the quarterly release.
According to him, the cybersecurity giant’s strategic push toward platform consolidation — broadly referred to as “platformization” — continues to gain traction across enterprise IT environments.
Levine noted that accelerated adoption of Next-Generation Security (NGS) solutions, integrated AI capabilities, and broader vendor consolidation should allow Palo Alto Networks to comfortably deliver on Q4 expectations.
Consequently, the investment firm expects solid momentum in annual recurring revenue (ARR) to counter the dovish options market sentiment.
How Wall Street Recommends Playing PANW
Investors should note, however, that not all Wall Street firms are as constructive on PANW shares as Evercore ISI.
While the consensus rating on Palo Alto Networks remains at “Strong Buy,” the mean price target of nearly $370 signals potential downside from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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