
PANW Stock Forecast & Price Target
PANW Analyst Ratings
Bulls say
Palo Alto Networks has demonstrated a significant transition towards software offerings, with software form factors accounting for 44% of trailing 12-month product revenue, reflecting a shift from hardware. The company reported strong growth in Subscription Revenue and Support Revenue, both increasing by 14% year-over-year, and achieved an impressive Net Global Security Annual Recurring Revenue (NGS ARR) of $5.85 billion, marking a 29% year-over-year increase. Additionally, the firm's gross margin was robust at 76.9%, with an operating margin of 30.2% exceeding expectations, further complemented by earnings per share (EPS) of $0.93 that surpassed both guidance and analyst estimates.
Bears say
Palo Alto Networks faces a challenging outlook due to a combination of prolonged refresh cycles in its hardware firewall business and a projected slowdown in IT spending, which may adversely affect the company's performance. Additionally, the firm reported a 10% year-over-year decline in net new Next-Generation Security Annual Recurring Revenue (ARR), highlighting potential weaknesses in revenue generation. The competitive landscape for cybersecurity is intensifying, with innovative offerings posing threats to Palo Alto's platform-based model, while the company's shift towards an aggressive acquisition-driven growth strategy has raised concerns about its strategic direction and market adaptability.
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
Start investing in PANW
Order type
Buy in
Order amount
Est. shares
0 shares