Downgrade Watchlist! These Are the Stocks Analysts Downgraded on 7/30/25
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2025
0mins
Should l Buy PANW?
Source: TipRanks
Analyst Downgrades Overview: Several companies, including AMD, UPS, and Caesars Entertainment, have been downgraded by analysts due to various concerns such as competitive risks, mixed earnings results, and disappointing business performance. These downgrades signal potential risks for investors and suggest a need for portfolio reassessment.
Specific Company Insights: Notable downgrades include AMD's shift from "Buy" to "Sell" amid competitive landscape concerns, UPS's downgrade following mixed Q2 results and suspended guidance, and CyberArk's downgrade after its acquisition by Palo Alto Networks, indicating a more cautious outlook despite the merger.
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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: 162.810
Low
157.00
Averages
232.49
High
265.00
Current: 162.810
Low
157.00
Averages
232.49
High
265.00
About PANW
Palo Alto Networks, Inc. provides comprehensive artificial intelligence (AI)-powered security solutions across network, cloud, security operations and AI. The Company focuses on four areas: Network Security, Cloud Security, Security Operations and Threat Intelligence and Advisory Services (Unit 42). Its network security platform comprises ML-powered firewalls, AI Runtime Security, and a Secure Access Service Edge (SASE) framework, which includes Prisma Access, Prisma SD-WAN, and Prisma Access Browser to secure remote workforces and branch offices. Its Cloud security is delivered via Prisma Cloud, a Code to Cloud platform that protects applications, data, GenAI environments, and the cloud-native stack throughout the development lifecycle. Its Unit 42 division provides intelligence-led consulting, incident response, managed detection and response, and threat hunting services. Its Prisma AIRS is an AI security platform which secures applications, agents, models and data.
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.
Palo Alto Networks Projected to Report Strong Q2 Earnings
- Earnings Outlook: Palo Alto Networks is projected to report its Q2 earnings on February 17, with a 16% increase in EPS expected to reach $0.94 and revenue anticipated to rise 14.15% to $2.58 billion, indicating sustained growth potential in the market.
- Estimate Revisions: Over the past three months, EPS estimates have seen 31 upward revisions and 4 downward moves, while revenue estimates experienced 30 upward revisions and 12 downward adjustments, reflecting fluctuating analyst confidence in the company's future performance.
- Demand Slowdown: Analysts have noted a deceleration in Palo Alto's next-gen security ARR growth rate, suggesting a potential weakening demand for AI solutions, with projected RPO and total revenue growth also expected to moderate, indicating a broader slowdown in business momentum.
- Acquisition Update: Investors are keenly watching Palo Alto's completion of a $25 billion deal to acquire Israeli-based CyberArk, with the company reiterating its target of over 40% adjusted free cash flow margin for FY '28, which is expected to positively impact future financial performance.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
Earnings Season Brings Diverse Company Reports Ahead
- Earnings Expectations: As earnings season approaches, a diverse array of companies, including Walmart (WMT) and Palo Alto Networks (PANW), are set to report, with analysts forecasting over 10% year-over-year growth for Walmart, indicating resilience amid moderating consumer spending.
- Acquisition Impact: Palo Alto Networks (PANW) is expected to report 14%-16% year-over-year growth following its $25 billion acquisition of CyberArk, although it faces execution and integration risks, its strategic shift towards a cloud-based security platform remains promising.
- Energy Sector Challenges: Occidental Petroleum (OXY) is projected to report a 72% year-over-year decline in earnings for Q4, reflecting pressures from weak oil prices and compressed margins, although its investment-grade balance sheet and recent acquisitions may provide support in the next commodity cycle.
- Market Response: Walmart (WMT) shares have risen approximately 20% year-to-date, nearing a $1 trillion market cap, and despite valuation pressures, analysts remain optimistic about its strong market share and pricing power, indicating a shifting competitive landscape in the retail sector.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Quantum Computing Challenges in Cybersecurity Industry
- Surge in Cyberattacks: Health-ISAC reported a 55% increase in cyberattacks in the healthcare sector for 2025, highlighting the urgent need for companies to bolster cybersecurity measures as internet reliance grows and data risks escalate.
- Quantum Computing Threat: Palo Alto Networks is launching the industry's first security software with anti-quantum measures, aiming to prepare customers for potential threats before quantum computers can break modern encryption, thereby enhancing data security.
- Strong Financial Performance: In Q1 of fiscal 2026, Palo Alto Networks generated $5.85 billion in annual recurring revenue, a 29% year-over-year increase, while total revenue grew 16% to $2.47 billion, indicating robust growth potential in the cybersecurity market.
- AI Partnerships: The company has formed new AI partnerships with Nvidia and IBM, the latter being a leader in quantum computing, which will likely enhance Palo Alto's defenses against quantum threats and further solidify its market position.
See More
Palo Alto Networks' Quantum Security Strategy
- Quantum Security Platform Launch: Palo Alto Networks has introduced the industry's first quantum security platform aimed at addressing the cybersecurity threats posed by future quantum computing, enhancing customer data protection capabilities and positioning itself as a leader in the rapidly evolving cybersecurity market.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported an annual recurring revenue (ARR) of $5.85 billion, a 29% year-over-year increase, with total quarterly revenue growing 16% to $2.47 billion, indicating robust market demand and business growth potential.
- AI Partnerships: The company has formed new AI partnerships with Nvidia and IBM, leveraging IBM's leadership in quantum computing to bolster its defenses against quantum threats, further enhancing its competitive edge in the cybersecurity sector.
- Surge in Market Demand: A report from Health-ISAC indicates a 55% surge in cyberattacks in the healthcare sector in 2025, underscoring the critical importance of cybersecurity, and Palo Alto Networks is strategically positioning itself to meet the increasing market demand through forward-looking technology initiatives.
See More
Palo Alto Networks Projected to Report Strong Q2 Earnings
- Earnings Outlook: Palo Alto Networks is projected to report its Q2 earnings on February 17, with a 16% increase in EPS expected to reach $0.94 and revenue anticipated to rise 14.15% to $2.58 billion, indicating sustained growth potential in the market.
- Estimate Revisions: Over the past three months, EPS estimates have seen 31 upward revisions and 4 downward moves, while revenue estimates experienced 30 upward revisions and 12 downward adjustments, reflecting fluctuating analyst confidence in the company's future performance.
- Demand Slowdown: Analysts have noted a deceleration in Palo Alto's next-gen security ARR growth rate, suggesting a potential weakening demand for AI solutions, with projected RPO and total revenue growth also expected to moderate, indicating a broader slowdown in business momentum.
- Acquisition Update: Investors are keenly watching Palo Alto's completion of a $25 billion deal to acquire Israeli-based CyberArk, with the company reiterating its target of over 40% adjusted free cash flow margin for FY '28, which is expected to positively impact future financial performance.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
Earnings Season Brings Diverse Company Reports Ahead
- Earnings Expectations: As earnings season approaches, a diverse array of companies, including Walmart (WMT) and Palo Alto Networks (PANW), are set to report, with analysts forecasting over 10% year-over-year growth for Walmart, indicating resilience amid moderating consumer spending.
- Acquisition Impact: Palo Alto Networks (PANW) is expected to report 14%-16% year-over-year growth following its $25 billion acquisition of CyberArk, although it faces execution and integration risks, its strategic shift towards a cloud-based security platform remains promising.
- Energy Sector Challenges: Occidental Petroleum (OXY) is projected to report a 72% year-over-year decline in earnings for Q4, reflecting pressures from weak oil prices and compressed margins, although its investment-grade balance sheet and recent acquisitions may provide support in the next commodity cycle.
- Market Response: Walmart (WMT) shares have risen approximately 20% year-to-date, nearing a $1 trillion market cap, and despite valuation pressures, analysts remain optimistic about its strong market share and pricing power, indicating a shifting competitive landscape in the retail sector.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Quantum Computing Challenges in Cybersecurity Industry
- Surge in Cyberattacks: Health-ISAC reported a 55% increase in cyberattacks in the healthcare sector for 2025, highlighting the urgent need for companies to bolster cybersecurity measures as internet reliance grows and data risks escalate.
- Quantum Computing Threat: Palo Alto Networks is launching the industry's first security software with anti-quantum measures, aiming to prepare customers for potential threats before quantum computers can break modern encryption, thereby enhancing data security.
- Strong Financial Performance: In Q1 of fiscal 2026, Palo Alto Networks generated $5.85 billion in annual recurring revenue, a 29% year-over-year increase, while total revenue grew 16% to $2.47 billion, indicating robust growth potential in the cybersecurity market.
- AI Partnerships: The company has formed new AI partnerships with Nvidia and IBM, the latter being a leader in quantum computing, which will likely enhance Palo Alto's defenses against quantum threats and further solidify its market position.
See More
Palo Alto Networks' Quantum Security Strategy
- Quantum Security Platform Launch: Palo Alto Networks has introduced the industry's first quantum security platform aimed at addressing the cybersecurity threats posed by future quantum computing, enhancing customer data protection capabilities and positioning itself as a leader in the rapidly evolving cybersecurity market.
- Strong Financial Performance: In Q1 of fiscal 2026, the company reported an annual recurring revenue (ARR) of $5.85 billion, a 29% year-over-year increase, with total quarterly revenue growing 16% to $2.47 billion, indicating robust market demand and business growth potential.
- AI Partnerships: The company has formed new AI partnerships with Nvidia and IBM, leveraging IBM's leadership in quantum computing to bolster its defenses against quantum threats, further enhancing its competitive edge in the cybersecurity sector.
- Surge in Market Demand: A report from Health-ISAC indicates a 55% surge in cyberattacks in the healthcare sector in 2025, underscoring the critical importance of cybersecurity, and Palo Alto Networks is strategically positioning itself to meet the increasing market demand through forward-looking technology initiatives.
See More
