Citizens JMP reiterates Market Outperform rating on Palo Alto Networks stock

Published 19/08/2025, 10:14
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Investing.com - Citizens JMP analyst Trevor Walsh reiterated a Market Outperform rating and $212.00 price target on Palo Alto Networks (NASDAQ:PANW), a prominent player in the Software (ETR:SOWGn) industry, following the company’s fourth-quarter fiscal 2025 results.

Palo Alto Networks reported non-GAAP earnings per share of $0.95, exceeding the consensus estimate of $0.88. The cybersecurity firm posted revenue of $2.54 billion, surpassing analyst expectations of $2.50 billion and representing a 15% year-over-year increase, maintaining its strong revenue growth trajectory of 13.91% over the last twelve months. InvestingPro data shows the company maintains a healthy financial position with a "GOOD" overall rating.

The company achieved a non-GAAP operating margin of 30.3%, which was higher than the consensus estimate of 28.7%. Next-generation security annual recurring revenue reached $5.60 billion, up 32% year-over-year and above the consensus estimate of $5.55 billion.

Palo Alto Networks stock traded up approximately 5.0% in after-market trading following the earnings announcement. Year-to-date, the stock has gained approximately 2.4%, underperforming the Russell 3000 index, which has risen about 8.7% during the same period. According to InvestingPro analysis, the stock appears overvalued at current levels, trading at a P/E ratio of 93.84 and an EV/EBITDA multiple of 87.95.

Citizens JMP maintained its positive outlook on the cybersecurity company, keeping both its Market Outperform rating and $212 price target unchanged after the quarterly results. For deeper insights into PANW’s valuation and 12+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Palo Alto Networks reported its fourth-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $0.95, compared to the forecast of $0.89. Revenue for the quarter met expectations at $2.5 billion. The company also reported a strong free cash flow of $955 million for the fourth quarter, representing a 37.6% margin, which exceeded consensus expectations. Over the fiscal year 2025, Palo Alto Networks achieved an overall free cash flow margin of 38%.

Jefferies has maintained its Buy rating on Palo Alto Networks, citing the robust free cash flow performance and setting a price target of $235. Raymond (NSE:RYMD) James reiterated its Market Perform rating following the company’s fiscal fourth-quarter results. The firm noted that Palo Alto Networks demonstrated accelerating revenue, RPO, and bookings metrics, driven by strong performance in large multiyear deals. However, there was a minor concern regarding a lighter beat on NGS ARR.

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