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Investing.com - DA Davidson has reiterated its Buy rating and $215.00 price target on Palo Alto Networks (NASDAQ:PANW) following the cybersecurity company’s impressive fourth-quarter results. According to InvestingPro data, analysts maintain a bullish consensus on PANW with price targets ranging from $415 to $585, suggesting potential upside from current levels.
The company reported remaining performance obligations (RPOs) that accelerated to 24% year-over-year growth, up from 19% in the previous quarter, while current RPO growth improved to 19% from 15% last quarter. With a market capitalization of $21.2 billion and an overall Financial Health Score rated as "FAIR" by InvestingPro, the company shows solid fundamentals.
Palo Alto Networks posted next-generation security annual recurring revenue (NGS ARR) of $5.58 billion, representing 32% year-over-year growth and exceeding consensus estimates of $5.55 billion, with net new ARR growth reaching 14% year-over-year, its strongest performance since the third quarter of fiscal year 2024.
The company’s fiscal year 2026 guidance exceeded expectations across multiple metrics, including revenue growth, ARR, RPOs, operating margins, free cash flow margins, and earnings per share, with only subscription and support revenue implied below consensus.
DA Davidson also highlighted Palo Alto Networks’ target of achieving combined free cash flow margin with CYBR of over 40% by fiscal year 2028 as an impressive long-term goal.
In other recent news, CyberArk Software (NASDAQ:CYBR) reported its second-quarter 2025 results, which exceeded consensus expectations across all financial metrics. However, the company did not provide updated guidance due to its pending acquisition by Palo Alto Networks. This acquisition has prompted varied reactions from analysts, with Oppenheimer downgrading CyberArk’s stock from Outperform to Perform, citing the anticipated timely closure of the acquisition. Meanwhile, DA Davidson raised its price target for CyberArk to $518.00, maintaining a Buy rating, reflecting optimism about the acquisition’s potential benefits.
Cantor Fitzgerald also reiterated an Overweight rating with a $470.00 price target, despite the absence of updated guidance. Additionally, CyberArk received Cloud Service Provider certification from the Dubai Electronic Security Center, allowing it to offer cloud services to Dubai government entities. This certification aligns CyberArk with internationally recognized security standards, enhancing its service offerings in the region. BTIG maintained a Neutral rating on CyberArk, reflecting a cautious stance amid the ongoing acquisition developments.
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