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Recent acquisitions also supported Palo Alto Networks’ results. However, some analysts raised questions about changing disclosures as the company integrates new businesses into its platform strategy.
Raymond James analysts said the results included ‘a number of moving pieces from recent M&A that will no longer be disclosed.’ They added, “This point is likely to rub investors the wrong way considering management seems intent upon continuing M&A, but disclosures are constantly changing.”
Meanwhile, several brokerages raised their price targets after thPalo Alto Networks raised its annual revenue and profit forecast after stronger demand for cloud, identity, and AI-focused cybersecurity products. Shares rose 7.4% in extended trading on Tuesday, before reversing some gains in premarket activity on Wednesday.
Palo Alto Networks now expects fiscal 2026 revenue between $11.415 billion and $11.425 billion. That is higher than its earlier forecast of $11.28 billion to $11.31 billion, as enterprise demand continues to support sales growth.
The company also raised its adjusted earnings forecast to between $3.77 and $3.79 per share. Its previous outlook stood at $3.65 to $3.70 per share. The updated guidance came after the company posted stronger fiscal third-quarter results.
Fiscal third-quarter revenue rose 31% year over year to $3 billion. The figure came above analyst estimates of $2.94 billion, according to data compiled by LSEG. Growth was supported by wider use of the company’s security platforms.
Adjusted net income increased to $684 million, or $0.85 per diluted share. A year earlier, adjusted net income stood at $561 million, or $0.80 per diluted share. Meanwhile, Next-Generation Security annual recurring revenue rose 60% year over year to $8.1 billion.
AI has become a key growth area for Palo Alto Networks. Enterprises are spending more on tools that protect cloud systems, identity platforms, security operations, and AI deployments as cyber threats grow more complex.
Chief Executive Officer Nikesh Arora said AI development is changing how companies think about security. According to management, customers are seeking broader platforms that can help them manage threats across several parts of their technology systems.
e results. Benchmark lifted its target to $340 from $270 and kept a Buy rating. In addition, Truist Securities raised its target to $375 from $275 and called Palo Alto Networks a ‘core cyber holding.’
Also Read: US Stock Market Today: Dow Jones Rises 0.4%, Nasdaq 100 Drops 1%, Palo Alto Gains 16%
