
PANW Stock Forecast & Price Target
PANW Analyst Ratings
Bulls say
Palo Alto Networks has demonstrated a positive financial trajectory, highlighted by a notable increase in software form factors, which now account for 44% of trailing 12-month product revenue, reflecting a strategic shift away from hardware. The firm achieved a 14% year-over-year growth in both Subscription and Support Revenues, alongside a significant rise in annual recurring revenue (ARR) for Next-Generation Security (NGS), reaching $5.85 billion, up 29% from the previous year. Additionally, the company's gross margin of 76.9% and operating margin of 30.2% outperformed expectations, underscoring robust profitability amidst expanding customer growth, particularly within the Fortune 500 and the total number of SASE customers.
Bears say
Palo Alto Networks faces multiple challenges that contribute to a negative outlook on its stock. The company has highlighted that the hardware firewall market is experiencing low-to-mid single-digit growth and is impacted by elongated refresh cycles, notably against a backdrop of rising capital costs and a shift toward cloud solutions, which may hinder revenue. Additionally, declining net new annual recurring revenue (ARR) from its next-generation security offerings and slower adoption of its cloud security solutions raise concerns about its competitive position in a rapidly evolving and highly innovative cybersecurity landscape.
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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