Palo Alto Networks receives praise from Wall Street after latest results, guidance
Aug. 19, 2025 8:13 AM ET
By: Chris Ciaccia, SA News Editor
Palo Alto Networks (NASDAQ: PANW) was in the spotlight on Tuesday after its latest quarterly results and guidance were better-than-expected and the company received substantial praise from Wall Street analysts.
Shares rose 6% in premarket trading, while other cybersecurity stocks, such as CrowdStrike ( CRWD), Fortinet ( FTNT) and Zscaler ( ZS), also moved higher.
Wedbush Securities analyst Dan Ives said the results and guidance are indicative that the platformization strategy led by CEO Nikesh Arora is resonating with its customers.
“We continue to believe the platformization approach is the right move for PANW as cybersecurity is a clear 2nd/3rd derivative play in the AI Revolution leading to PANW ultimately emerging in the driver’s seat to gain market/mind share with last night’s strong quarter and outlook a key step forward for Nikesh [Arora] & Co,” Ives wrote in a note to clients.
In addition, Ives, has an Outperform rating and $225 price target on Palo Alto, said he was impressed with the added commentary regarding the CyberArk ( CYBR) deal, which he called a “game changer” for Palo Alto.
“On the call, management provided additional updates on its transformational acquisition of CYBR which it expects to close in the 2H of FY26, we continue to view this deal as a strategic home run by PANW as it continues its hunt to build an all-in-one solution for enterprises by adding a golden asset in CYBR who is the premier player in identity/PAM security,” Ives added. “We expect no other bidders or regulatory issues.”
Wells Fargo analyst Andrew Nowinski said he was pleased with the results and guidance, both of which highlighted Palo Alto's strengths. “We continue to believe the company is well positioned for AI and will have the most comprehensive platform in the industry after the CYBR deal closes,” Nowinksi wrote in a research note. He has an Overweight rating and $235 price target on Palo Alto.
Bank of America analyst Tal Liani, who upgraded Palo Alto to Buy from Hold, said the results and guidance were “impressive” on all fronts. Liaini cited its next-generation security annual recurring revenue, which rose 32.2% year-over-year; its 24.4% growth in remaining performance obligations; and a 19.4% rise in product revenue, all of which topped Wall Street's expectations.
“At a high level, the company’s strategy appears to be working well, with 1400 platform deals, and software is driving up growth, accounting now for 56% of product revenues vs. 44% last year. With the stock down about 15% from the date of CyberArk M&A announcement, and given the solid fundamentals, we are upgrading from Neutral to Buy and maintaining our $215 PO, suggesting 22% upside potential to the stock.” |
