RBC Capital analysts shared their outlook on Palo Alto Networks (NASDAQ:PANW) ahead of tomorrow’s Q3/23 earnings announcement.

Following mixed on-quarter security reports from peers, the analysts look for a slight upside to results and expect the company to maintain a conservative posture towards the outlook given macro uncertainty. As such, the analysts expect follow-through from last quarter’s momentum as the company continues to execute in a challenging environment and remains in a position to consolidate security spend at the platform level.

The analysts continue to like the company’s role in security consolidation, multiple growth drivers and the potential for meaningful long-term margin expansion.