PANWPalo Alto Networks exhibits strong fundamental growth and a favorable thematic position in cybersecurity, supported by generally positive technical indicators. Valuation is a consideration, but the company's long-term prospects remain robust.
Palo Alto Networks is a leader in cybersecurity, a critical and growing sector. Its focus on cloud security, AI-driven threat detection, and comprehensive platform solutions positions it well for continued expansion.
Palo Alto Networks demonstrates strong revenue growth, improving profitability, and a healthy balance sheet. Its focus on recurring subscription revenue provides stability.
The stock is trading within its 52-week range and shows mixed signals across different timeframes. Moving averages generally indicate an uptrend, but some oscillators suggest potential overbought conditions.
| Factor | Score |
|---|---|
| Cybersecurity Demand | 95 |
| Cloud Security Adoption | 90 |
| AI Integration in Security | 88 |
| Market Expansion | 85 |
| Regulatory & Compliance Trends | 70 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 75 |
| Growth | 85 |
| Balance Sheet Health | 80 |
| Cash Flow | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 65 |
| Support & Resistance | 70 |
| Volume Analysis | 70 |
| Short-term Oscillators | 50 |
Consistent EPS Surprises
Palo Alto Networks has consistently beaten EPS estimates, with surprise percentages ranging from 3.9% to 35.12% over the last several quarters, indicating reliable earnings performance.
Strong 1-Year and YTD Performance
The stock has demonstrated strong performance with a 1-year return of 23.11% and a Year-to-Date (YTD) return of 11.3%, indicating positive investor sentiment and market appreciation.
Very High P/E Ratio
The TTM P/E ratio of 116.28 is significantly higher than many industry averages, suggesting the stock may be overvalued and susceptible to a correction if growth expectations are not met.
Decelerating Revenue Growth (Quarterly)
While annual revenue growth appears strong, quarterly revenue figures show a trend of deceleration in recent periods (e.g., from Q3 2024 to Q2 2025 estimates), which could signal a slowdown in expansion.
August 2025
18
Next Earnings Date
H: $0.90
A: $0.88
L: $0.80
H: 2.52B
A: 2.50B
L: 2.49B
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company's network security platforms include Prisma Access, a security services edge (SSE) solution, as well as Strata Cloud Manager, a network security management solution. It also provides cloud security solutions, including Prisma Cloud, a cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. In addition, the company provides security operation solutions through Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR for the prevention, detection, and response to complex cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. Further, it provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. Additionally, the company offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
212.04 USD
The 39 analysts offering 1 year price forecasts for PANW have a max estimate of 235.00 and a min estimate of 123.00.