Shares of Palo Alto Networks (NASDAQ: PANW) dropped over 25% this week, according to data from S&P Global Market Intelligence. The cybersecurity giant dropped its revenue and billings guidance for fiscal year 2024, causing analysts to lower their price targets. Shares of Palo Alto Networks have soared in the past year with more and more cybersecurity threats emerging and government mandates in places like the U.S. Despite this recent drop, Palo Alto Networks stock is up 50% in the last 12 months.

In its second quarter, Palo Alto Networks' revenue grew 19% year over year to $2 billion. The company is not very profitable, posting just $54 million in operating income last quarter, but it has a huge opportunity ahead of it with the continued need for cybersecurity from companies and government agencies.

The problem is, this opportunity has created massive expectations in Palo Alto Networks stock. Expectations were not met this quarter as the company lowered its revenue and billings guidance for fiscal year 2024. It now expects total billings in the range of $10.1 billion-$10.2 billion, down from $10.7 billion-$10.8 billion, and revenue from $7.95 billion-$8 billion, down from $8.15 billion-$8.2 billion.

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Source Fool.com