Palo Alto Networks: Stable Income Expansion
Palo Alto Networks (PANW +1.08%) basically supplies cybersecurity answers, together with firewall home equipment, tool, and subscription products and services, to enterprises and govt entities international.
It finished a $25 billion acquisition of CyberArk Device, whilst reporting an roughly 17% internet source of revenue margin for the quarter ended Jan. 31, 2026.
Zscaler: Constant Income Growth
Zscaler (ZS 0.75%) operates as a cloud safety supplier that secures person get right of entry to to externally controlled tool programs and inner knowledge facilities for endeavor consumers.
It expanded its World Sovereignty choices, whilst posting an roughly -4% internet source of revenue margin for the quarter ended Jan. 31, 2026.
Why Income Issues for Traders
Income represents the overall sum of money an organization brings in from its core operations prior to any bills are deducted, and it is helping traders monitor the elemental expansion of a trade.
Symbol supply: The Motley Idiot.
Quarterly Income for Palo Alto Networks and Zscaler
| Quarter (Length Finish) | Palo Alto Networks Income | Zscaler Income |
|---|---|---|
| Q2 2024 (April 2024) | $2.0 billion | $553.2 million |
| Q3 2024 (July 2024) | $2.2 billion | $592.9 million |
| This autumn 2024 (Oct. 2024) | $2.1 billion | $628.0 million |
| Q1 2025 (Jan. 2025) | $2.3 billion | $647.9 million |
| Q2 2025 (April 2025) | $2.3 billion | $678.0 million |
| Q3 2025 (July 2025) | $2.5 billion | $719.2 million |
| This autumn 2025 (Oct. 2025) | $2.5 billion | $788.1 million |
| Q1 2026 (Jan. 2026) | $2.6 billion | $815.8 million |
Knowledge supply: Corporate filings. Knowledge as of Might 10, 2026.
Silly Take
Palo Alto Networks and Zscaler skilled a curler coaster 2026. Wall Boulevard turned into fearful synthetic intelligence would thieve a few of their consumers, resulting in a fashionable sell-off within the cybersecurity sector within the first quarter. The ones fears as unfounded as each corporations have followed AI into their answers, and their sturdy year-over-year earnings expansion in Q1 signifies their answers stay in call for.
Palo Alto Networks is a pace-setter within the cybersecurity sector, and its a long way higher gross sales in comparison to Zscaler demonstrates this. Every other key difference between the 2 is that Palo Alto Networks is successful. It posted internet source of revenue of $432 million in its fiscal Q1 ended Jan. 31. Zscaler had a internet lack of $34 million in that very same time frame.
That mentioned, Zscaler’s loss of income is standard of fast-growing tech corporations, which have a tendency to pour source of revenue into trade growth over reaching profitability. The tactic is operating for the corporate, given its gross sales are rising a long way quicker than its better rival, as indicated through its year-over-year expansion to $815.8 million within the first quarter.
Robert Izquierdo has positions in Palo Alto Networks. The Motley Idiot has positions in and recommends Zscaler. The Motley Idiot recommends Palo Alto Networks. The Motley Idiot has a disclosure coverage.
