Palo Alto Network | PANW Q4 2025 Earnings Analysis | CyberArk Was A Good Acquisition

Описание: Palo Alto Networks (PANW) sold off after announcing a ~$25B acquisition of CyberArk Software (CYBR). We break down why the deal, FY2026 revenue guidance (~14% YoY, organic/ex-acquisition), free cash flow and margins matter in an AI supercycle—and what the integration could mean for investors.

• FY26 organic revenue guidance ~14% YoY at the midpoint—the lowest in ~15 years—despite AI tailwinds.
• Deal size ≈$25B; target has ~3,800 employees—significant integration complexity.
• Target posted ~40% LTM growth but is GAAP-unprofitable (≈$164–165M net loss); stock-based compensation is material.
• Cash & short-term investments ≈$1.5B provide liquidity; cash flow/FCF lens alters the picture versus net income.
• Key watch items: margins, Rule-of-40 balance (growth + FCF margins), execution on integration.
• Risks: integration and culture fit, potential margin dilution, and the market’s focus on growth vs. profitability.

Chapters
00:00 Selloff after acquisition announced
00:40 Revenue trend & FY26 guidance
01:06 AI supercycle vs growth expectations
01:19 Cash & liquidity; FCF lens
02:55 Deal details & timeline
03:12 Integration scale (employees)
04:24 Margins & profitability (GAAP vs cash)
04:54 Stock-based comp & operating income
11:01 Integration challenges & execution risk
12:57 Product context & portfolio

Not financial advice.
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