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Big Movers: Why Palo Alto Networks Dropped Despite Beating Earnings

MarketDash Editorial Team
18 days ago
Palo Alto Networks led a group of stocks sliding in pre-market trading Thursday, falling nearly 5% despite beating quarterly estimates and raising guidance. The cybersecurity giant also announced plans to acquire observability platform Chronosphere.

Stock futures climbed Thursday morning with the Nasdaq gaining around 300 points, but several big names found themselves swimming against the tide in pre-market trading.

Leading the decline was Palo Alto Networks Inc. (PANW), which dropped 4.6% to $190.90 despite delivering what looked like a solid earnings report. The cybersecurity company beat expectations on both the top and bottom lines for its first quarter of fiscal 2026, posting revenue of $2.47 billion (analysts wanted $2.46 billion) and adjusted earnings of 93 cents per share (beating the 89-cent estimate). The company even raised its full-year guidance for fiscal 2026.

So what's the problem? Sometimes good news just isn't good enough in the market's eyes. Palo Alto also announced it's acquiring Chronosphere, a next-generation observability platform designed to scale with AI applications, which could be giving investors pause about integration costs or strategic direction.

Other Pre-Market Decliners

WeShop Holdings Limited (WSHP) tumbled 38.8% to $122.33, giving back some of Wednesday's spectacular 506% surge. What goes up that fast usually comes down pretty quickly.

Vizsla Silver Corp (VZLA) fell 12.6% to $4.08 after announcing a $250 million convertible senior notes offering. Investors tend to dislike dilution, even when it's in convertible form.

FinVolution Group (FINV) dropped 5.6% to $5.23 following its third-quarter earnings release.

Kyverna Therapeutics Inc (KYTX) declined 5.1% to $7.81 after gaining 5% the previous session.

Forward Air Corp (FWRD) slipped 3.4% to $19.44, extending Wednesday's 4% decline.

NetEase Inc (NTES) fell 3.2% to $129.15 after reporting its fiscal third-quarter results Thursday.

Albemarle Corp (ALB) declined 2.8% to $122.12, giving back some of Wednesday's 3.5% gain. The lithium producer had gotten a boost when BMO Capital maintained its Outperform rating and lifted its price target from $125 to $136.

Back to News

Big Movers: Why Palo Alto Networks Dropped Despite Beating Earnings

MarketDash Editorial Team
18 days ago
Palo Alto Networks led a group of stocks sliding in pre-market trading Thursday, falling nearly 5% despite beating quarterly estimates and raising guidance. The cybersecurity giant also announced plans to acquire observability platform Chronosphere.

Stock futures climbed Thursday morning with the Nasdaq gaining around 300 points, but several big names found themselves swimming against the tide in pre-market trading.

Leading the decline was Palo Alto Networks Inc. (PANW), which dropped 4.6% to $190.90 despite delivering what looked like a solid earnings report. The cybersecurity company beat expectations on both the top and bottom lines for its first quarter of fiscal 2026, posting revenue of $2.47 billion (analysts wanted $2.46 billion) and adjusted earnings of 93 cents per share (beating the 89-cent estimate). The company even raised its full-year guidance for fiscal 2026.

So what's the problem? Sometimes good news just isn't good enough in the market's eyes. Palo Alto also announced it's acquiring Chronosphere, a next-generation observability platform designed to scale with AI applications, which could be giving investors pause about integration costs or strategic direction.

Other Pre-Market Decliners

WeShop Holdings Limited (WSHP) tumbled 38.8% to $122.33, giving back some of Wednesday's spectacular 506% surge. What goes up that fast usually comes down pretty quickly.

Vizsla Silver Corp (VZLA) fell 12.6% to $4.08 after announcing a $250 million convertible senior notes offering. Investors tend to dislike dilution, even when it's in convertible form.

FinVolution Group (FINV) dropped 5.6% to $5.23 following its third-quarter earnings release.

Kyverna Therapeutics Inc (KYTX) declined 5.1% to $7.81 after gaining 5% the previous session.

Forward Air Corp (FWRD) slipped 3.4% to $19.44, extending Wednesday's 4% decline.

NetEase Inc (NTES) fell 3.2% to $129.15 after reporting its fiscal third-quarter results Thursday.

Albemarle Corp (ALB) declined 2.8% to $122.12, giving back some of Wednesday's 3.5% gain. The lithium producer had gotten a boost when BMO Capital maintained its Outperform rating and lifted its price target from $125 to $136.