DA Davidson Optimistic on CyberArk Software After Strong Quarter
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy PANW?
Source: Benzinga
- Subscription Growth Drives Results: CyberArk Software reported revenue of $372.7 million and adjusted EPS of $1.33 in its latest quarterly report, slightly below expectations, yet supported by a robust 28% growth in subscription revenue, which constituted 83% of total revenue.
- Strong ARR Momentum: The analyst highlighted that CyberArk's annual recurring revenue (ARR) rose 23% year-over-year to $1.44 billion, with subscription ARR growing approximately 29% organically, indicating strong market demand and customer retention.
- Operating Margins Slightly Below Expectations: Although operating margins came in slightly lower than anticipated due to rising costs, the free cash flow exceeded forecasts, reflecting the company's solid financial management and bolstering investor confidence.
- Acquisition Outlook Affects Guidance: With the pending acquisition by Palo Alto Networks, CyberArk will not hold an earnings call or provide updated guidance; however, the analyst maintains a bullish outlook, projecting next quarter's revenue at $378.6 million and EPS at $1.35.
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Analyst Views on PANW
Wall Street analysts forecast PANW stock price to rise
34 Analyst Rating
28 Buy
5 Hold
1 Sell
Strong Buy
Current: 207.880
Low
157.00
Averages
232.49
High
265.00
Current: 207.880
Low
157.00
Averages
232.49
High
265.00
About PANW
Palo Alto Networks, Inc. is a global artificial intelligence (AI) cybersecurity company, with a comprehensive portfolio of cybersecurity solutions and platforms across network, cloud, security operations, AI and Identity. Its network security platform includes Secure Access Service Edge (SASE), Next-Generation Firewalls, Cloud Delivered Security Services (CDSS), Prisma AIRS, and Strata Cloud Manager (SCM). It delivers security operations capabilities that unifies standalone Security Information and Event Management (SIEM) tools, endpoint security, security automation, cloud detection and response (CDR), as well as attack surface management (ASM) capabilities on its Cortex platform. It delivers comprehensive security across the cloud application development lifecycle through Cortex Cloud. Its Unit 42 brings together expertise across threat research, incident response, and security consulting to deliver intelligence-driven, response-ready outcomes that help customers reduce cyber risk.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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