Palo Alto Networks Stock Outlook: Could Q3 2025 Earnings Trigger a Bullish Move?

With Palo Alto Networks set to release its Q3 earnings on Wednesday, 19 November 2025, the company may be positioned for a potential bullish rally that could support longer-term price growth and possibly push the stock towards new all-time highs.

Earnings Expectations and Valuation

Analysts are projecting an EPS of $0.50 for Q3 (based on 15 analyst predictions), up from last year’s Q3 EPS of $0.41, representing a 21.95% year-on-year increase. However, despite this improvement, Palo Alto’s share price has risen only 18.46%, moving from $170.81 in 2024 to $202.34 in 2025. This slower price appreciation may suggest the stock is undervalued, presenting a potential buying opportunity.

Still, EPS alone does not provide a complete picture. Investors should also evaluate Palo Alto’s balance sheet, income statement, cashflow statement, and forward guidance to gain a clearer understanding of the company’s long-term financial health.

Technical Analysis: Consolidation Ahead of Earnings

From a technical standpoint, Palo Alto appears to be in a phase of market consolidation, supported by:

• Small MACD histograms, indicating reduced momentum
• Price action sitting mid-range within the Bollinger Bands
• RSI at 52, reflecting neutral market sentiment

This type of consolidation is common prior to earnings releases, as traders wait for fresh information before committing to a direction.

Analyst Price Targets and Valuation Challenges

Current analyst forecasts point to a future price target of $227.50, representing a 12.12% upside. However, these projections should be treated with caution. Palo Alto does not currently have a P/E or forward P/E ratio, due to negative earnings, which introduces valuation uncertainty and potential downside risk heading into the earnings announcement.

This lack of a P/E ratio highlights the importance of reviewing the upcoming earnings report carefully, as negative earnings may create volatility and hinder near-term bullish momentum.

Outlook for Traders and Investors

With a strong projected EPS and an optimistic analyst price target, Palo Alto may still be positioned for bullish gains in the near term. However, the presence of negative earnings introduces uncertainty and increases the potential for downside movement following the earnings release.

For this reason, traders and investors may wish to proceed with caution by:

• Using stop-loss orders
• Waiting for confirmation of a breakout or trend direction
• Monitoring the earnings report for changes in profitability and guidance