Palo Alto Networks

PANW

Market cap $122B

Palo Alto Networks' stock has dipped in 2026 so far, but this could be an opportunity for savvy investors. The cybersecurity market is on track to increase substantially in the long run, driven by such catalysts as AI.

One of the world's foremost cybersecurity names, Palo Alto Networks ( NASDAQ:PANW ) is down 21% year-to-date and 24% over the past year, sitting at $144 against a 52-week high of $223.61.

Palo Alto's forward guidance for 2H FY2026 includes M&A contributions, but its organic revenue remains resilient. The Rule of 40 is expected to remain on track for 2H FY2026 based on organic revenue growth and non-GAAP operating margin outlook. M&A is expected to contribute $1.6 billion in RPO in 2H, driving strong overall growth. However, organic RPO growth is expected to decelerate from 1H.

Both CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW) operate at the center of enterprise cybersecurity, share the same AI-driven demand tailwind, and have each pulled back sharply in 2026.

Shares of cybersecurity companies including CrowdStrike and Datadog slumped on Monday, as investors weighed the potential impact of artificial intelligence startup Anthropic's new security tool on the industry.

Palo Alto Networks (PANW) shares have decreased by 18.1% over the last 21 trading days. This recent decline is attributed to worries about reduced profit guidance resulting from acquisition integration expenses and slowing NGS (Next-Generation Security) growth.

Cybersecurity stocks dropped for a second day as the threat of AI to the industry loomed large with Anthropic's latest AI tool that can scan code for vulnerabilities. Investors are worried these new tools will displace software business models and many tasks handled by cybersecurity vendors.

Cybersecurity stocks are getting hit by what Wedbush Securities' Dan Ives calls an "AI Ghost Trade" — but the firm believes investors are misreading the threat.

In this episode of The Morning Filter, co-hosts Dave Sekera and Susan Dziubinski unpack what the Supreme Court's ruling on the Trump Administration's emergency tariffs may mean for markets. They also discuss whether the AI-fueled stock market selloff has gone too far and where the opportunities may lie for investors today. They discuss if Nvidia's earnings report this week can lead to a recovery in AI-related stocks and if earnings releases from Salesforce CRM or Workday WDAY could lift their struggling stocks. Tune in to find out what to make of Walmart's WMT results, plus what Kraft Heinz's KHC breakup flip-flop and Elliot's investment in Norwegian Cruise Lines NCLH may mean for their stocks.

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