Palo Alto Networks Inc. (NASDAQ:PANW) reported fiscal fourth-quarter revenue of $3.41 billion and adjusted earnings of $1.02 a share, exceeding expectations of $3.35 billion and 98 cents, respectively. The company guided fiscal 2027 revenue to $14.10 billion to $14.20 billion, roughly $300 million above consensus. Despite the results and outlook, shares fell 5.2% Tuesday to $362.09 and another 8% Wednesday to roughly $330, a two-day decline of 13.2% and the steepest back-to-back move since February 2024. That earlier selloff followed a guidance cut that erased more than a quarter of the stock’s value in one session. Gross margin (the share of revenue left after direct costs) declined 100 basis points year over year to 74.8%. Management said cloud hosting costs will grow faster than revenue in fiscal 2027, while memory and storage costs are expected to remain elevated. A related item said Palo Alto announced a Console Acquisition to strengthen agentic capabilities.