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Analysts See Buying Opportunity in Palo Alto Networks Despite Post-Earnings Dip

MarketDash Editorial Team
17 days ago
Six analysts maintain bullish stances on Palo Alto Networks as the cybersecurity giant doubles down on AI-era security through major acquisitions and platform consolidation, though near-term execution risks loom.

Palo Alto Networks, Inc (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. And Wall Street analysts think any post-earnings weakness is a chance to get in.

The cybersecurity giant is charging into its next phase of growth with strategic acquisitions like CyberArk and Chronosphere, though not everyone's convinced the near-term execution risk is worth ignoring. Here's what six analysts are saying about where Palo Alto goes from here.

The Analyst Scorecard

DA Davidson analyst Rudy Kessinger maintained a Buy rating with a $240 price target.

Wedbush analyst Dan Ives reiterated an Outperform rating with a $225 price target.

Cantor Fitzgerald analyst Jonathan Ruykhaver maintained an Overweight rating with a $250 price target.

Rosenblatt analyst Catharine Trebnick reiterated a Buy rating with a $250 price target.

Needham analyst Mike Cikos maintained a Buy rating with a $230 price target.

BofA Securities analyst Tal Liani reiterated a Buy rating with a $240 price target.

What the Bulls Are Seeing

DA Davidson: Kessinger pointed out 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 acknowledged 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 the first quarter as its platformization strategy gains traction and customers prioritize vendor consolidation. Cybersecurity remains a major AI beneficiary, the analyst argued, and he 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 the stock 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, Cortex and AI Runtime Security. He expected the company to benefit from an expanded Total Addressable Market in identity, observability and quantum readiness, positioning it as a full-stack security and observability platform for the AI era. Ruykhaver remained bullish.

Rosenblatt: Trebnick wrote Palo Alto continued to execute strongly, beating 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. She 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 suggests 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.

The Bottom Line

PANW is trading lower by 6.46% to $186.98, but the analyst consensus is clear: the selloff looks like noise, not signal. The company is making big bets to dominate AI-era security, and while juggling two massive acquisitions at once isn't without risk, the long-term growth story remains intact.

Back to News

Analysts See Buying Opportunity in Palo Alto Networks Despite Post-Earnings Dip

MarketDash Editorial Team
17 days ago
Six analysts maintain bullish stances on Palo Alto Networks as the cybersecurity giant doubles down on AI-era security through major acquisitions and platform consolidation, though near-term execution risks loom.

Palo Alto Networks, Inc (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. And Wall Street analysts think any post-earnings weakness is a chance to get in.

The cybersecurity giant is charging into its next phase of growth with strategic acquisitions like CyberArk and Chronosphere, though not everyone's convinced the near-term execution risk is worth ignoring. Here's what six analysts are saying about where Palo Alto goes from here.

The Analyst Scorecard

DA Davidson analyst Rudy Kessinger maintained a Buy rating with a $240 price target.

Wedbush analyst Dan Ives reiterated an Outperform rating with a $225 price target.

Cantor Fitzgerald analyst Jonathan Ruykhaver maintained an Overweight rating with a $250 price target.

Rosenblatt analyst Catharine Trebnick reiterated a Buy rating with a $250 price target.

Needham analyst Mike Cikos maintained a Buy rating with a $230 price target.

BofA Securities analyst Tal Liani reiterated a Buy rating with a $240 price target.

What the Bulls Are Seeing

DA Davidson: Kessinger pointed out 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 acknowledged 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 the first quarter as its platformization strategy gains traction and customers prioritize vendor consolidation. Cybersecurity remains a major AI beneficiary, the analyst argued, and he 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 the stock 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, Cortex and AI Runtime Security. He expected the company to benefit from an expanded Total Addressable Market in identity, observability and quantum readiness, positioning it as a full-stack security and observability platform for the AI era. Ruykhaver remained bullish.

Rosenblatt: Trebnick wrote Palo Alto continued to execute strongly, beating 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. She 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 suggests 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.

The Bottom Line

PANW is trading lower by 6.46% to $186.98, but the analyst consensus is clear: the selloff looks like noise, not signal. The company is making big bets to dominate AI-era security, and while juggling two massive acquisitions at once isn't without risk, the long-term growth story remains intact.