Palo Alto Networks, Inc (NASDAQ:PANW) is tightening its grip on the artificial intelligence-era cybersecurity landscape as customers consolidate spending around its platform and the company pushes deeper into identity, observability and AI security.
The company is charging into its next phase of growth, using strategic acquisitions like CyberArk and Chronosphere.
• PANW is feeling the pressure from bearish momentum. Watch the momentum here.
Here’s what six analysts think about Palo Alto Networks:
DA Davidson analyst Rudy Kessinger maintained Palo Alto with a Buy and a $240 price target.
Wedbush analyst Dan Ives reiterated Palo Alto with an Outperform and a $225 price target.
Cantor Fitzgerald analyst Jonathan Ruykhaver maintained Palo Alto with an Overweight and a $250 price target.
Rosenblatt analyst Catharine Trebnick reiterated Palo Alto with a Buy and a $250 price target.
Needham analyst Mike Cikos maintained Palo Alto with a Buy and a $230 price target.
BofA Securities analyst Tal Liani reiterated Palo Alto with a Buy and a $240 price target.
Also Read: Palo Alto Stock Pops As Analysts Say Strong Growth, CyberArk Deal Could Power Next Leg Higher
DA Davidson: Kessinger noted that Palo Alto delivered a strong first quarter, showing upside in Next-Generation Annual Recurring Revenue, Remaining Performance Obligation and free cash flow.
The analyst highlighted accelerating organic Net New Annual Recurring Revenue growth above 20% and stable 24% RPO growth. While management slightly raised fiscal 2026 revenue and operating margin guidance, the company reiterated long-term targets for NGS ARR and RPO. He noted the $3.35 billion Chronosphere acquisition as adding fast-growing ARR and reinforcing platform expansion. Kessinger noted shares could face near-term pressure due to deal costs but sees a strong setup on weakness.
Wedbush: Ives wrote that Palo Alto posted slight top- and bottom-line beats in first quarter as its platformization strategy gains traction and customers prioritize vendor consolidation.
The analyst argued cybersecurity remains a major AI beneficiary and expects Palo Alto to seize market and mind share. He highlighted continued strength in Secure Access Service Edge and Extended Security Intelligence and Automation Management, rising platformization deals and raised long-term NGS ARR targets to roughly $20 billion by fiscal 2030.
Ives noted the Chronosphere acquisition as reinforcing Palo Alto's convergence push in security and observability. The analyst kept Palo Alto on Wedbush's Best Ideas List, and recommended buying on any weakness.
Cantor Fitzgerald: Ruykhaver said Palo Alto delivered a strong quarter driven by security platform consolidation, beating expectations on revenue, NGS ARR, RPO, FCF and EPS.
The analyst highlighted the Chronosphere acquisition as a strategic move into observability at AI scale, and noted Palo Alto raised its long-term NGS ARR target to $20 billion by fiscal 2030 thanks to momentum across SASE, Corte, x and AI Runtime Security. He expected Palo Alto to benefit from an expanded Total Addressable Market in identity, observability and quantum readiness, positioning the company as a full-stack security and observability platform for the AI era. Ruykhaver remained bullish.
Rosenblatt: Trebnick wrote Palo Alto continued to execute strongly, having beat expectations with 16% revenue growth, 29% NGS ARR growth and another quarter of 30%+ operating margin.
The analyst viewed the post-earnings pullback as purely sentiment-driven, not a sign of weakening fundamentals. He argued that Palo Alto was aggressively consolidating the critical security control planes of the AI era through strategic acquisitions in identity, observability and AI security. Trebnick highlighted robust platform adoption, expanding TAM and long-term ARR targets rising to $20 billion by fiscal 2030.
Needham: Cikos noted Palo Alto delivered solid results, landing at or above the high end of guidance.
The analyst highlighted the company now targets $20 billion in fiscal 2030 NGS ARR, up from $15 billion, driven by the pending CyberArk and Chronosphere deals. He wrote that improved fiscal 2026 revenue, margin and EPS guidance and sees continued momentum as customers expand platform adoption.
Cikos cautioned that the Chronosphere acquisition introduced higher execution risk. Despite integration challenges, the analyst noted strong demand durability and believes platformization remains a powerful growth catalyst.
Bank of America Securities: Liani wrote that Palo Alto posted in-line results, but investors focused on the Chronosphere acquisition.
The analyst noted the company is pursuing two large deals at once, adding near-term margin pressure while expanding TAM from $200 billion in 2025 to $300 billion in 2028. Management guided fiscal 2026 free cash flow margin down to 37%+, which quantifies execution risk. Still, he highlighted strong product momentum, especially in software firewalls and SASE, and sees Chronosphere and CyberArk driving the next growth phase.
PANW Price Action: PANW is trading lower by 6.46% to $186.98 at publication on Thursday.
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