
PANW Stock Forecast & Price Target
PANW Analyst Ratings
Bulls say
Palo Alto Networks has demonstrated robust growth in its product revenue, expecting a 25% year-over-year increase in the upcoming fiscal quarter, which reflects strong market demand and customer engagement. The company's platform momentum is evidenced by a significant rise in platformizations among top customers, with net new additions more than doubling from the previous quarter. Additionally, the backlog of remaining performance obligations (RPO) reached $16.0 billion, growing 23% year-over-year and exceeding guidance, indicating strong future revenue visibility and a healthy trajectory for the business.
Bears say
Palo Alto Networks has provided a lower-than-expected F3Q EPS guidance of $0.78 to $0.80, which fell short of the consensus estimate of $0.79, as well as a revision in FY26 EPS guidance from $3.80 - $3.90 to $3.65 - $3.70, indicating potential challenges in maintaining growth. The firm faces risks from a downturn in the firewall refresh cycle and an increasingly competitive landscape in the cybersecurity market, which could hinder performance amid a slowdown in IT spending. Additionally, the company's operating margin has been adjusted downward to 28.5%-29.0% from the previous range of 29.5%-30.0%, reflecting increased acquisition costs and highlighting potential pressures on profitability.
This aggregate rating is based on analysts' research of Palo Alto Networks and is not a guaranteed prediction by Public.com or investment advice.
PANW Analyst Forecast & Price Prediction
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