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Investing.com - Stifel has reiterated a Buy rating and $225.00 price target on Palo Alto Networks (NASDAQ:PANW), a $117.5 billion market cap cybersecurity leader, following the company’s strong fourth-quarter fiscal 2024 results. According to InvestingPro data, analyst targets for PANW range from $130 to $235, with a consensus recommendation of 1.8 (Strong Buy).
The cybersecurity firm reported accelerating bookings growth, reaching its highest level in 2.5 years, while remaining performance obligations (RPO) grew 24% year-over-year, marking the highest growth rate in seven quarters. Next-generation security annual recurring revenue (NGS-ARR) increased 32% year-over-year, while revenue rose 15.8% compared to the same period last year. InvestingPro analysis shows the company maintains a healthy 73.6% gross profit margin, though it’s currently trading above its Fair Value.
Palo Alto Networks issued guidance for fiscal year 2026 that exceeded analyst expectations, projecting 14% year-over-year revenue growth and NGS-ARR growth between 26% and 27%. The company also forecasts RPO growth of 17% to 18% and adjusted free cash flow margin between 38% and 39%. InvestingPro subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into PANW’s valuation and growth prospects.
The firm reported strong performance across its platform strategy and focus areas, including secure access service edge (SASE), extended security intelligence and automation management (XSIAM), artificial intelligence, and virtual firewalls, with double-digit growth across all geographic regions.
Palo Alto Networks also provided its first full-year post-integration outlook for fiscal year 2028, projecting adjusted free cash flow margin above 40% for the combined company after its pending acquisition of CyberArk, which is expected to close during the second half of Palo Alto’s fiscal year 2026.
In other recent news, Palo Alto Networks reported strong fiscal fourth-quarter results for 2025, with revenue reaching $2.54 billion, surpassing analyst expectations of $2.50 billion and marking a 15% year-over-year increase. The company also posted non-GAAP earnings per share of $0.95, exceeding the consensus estimate of $0.88. Palo Alto Networks achieved Next-Generation Security Annual Recurring Revenue (NGS ARR) of $5,580 million, representing a 32% year-over-year growth, slightly above market estimates. Jefferies reiterated its Buy rating on the company, highlighting a robust free cash flow performance of $955 million for the quarter, which exceeded consensus expectations.
TD Cowen also maintained its Buy rating, citing the company’s strong fourth-quarter performance and a positive fiscal year 2026 outlook. Citizens JMP reiterated a Market Outperform rating with a price target of $212.00, reflecting confidence in the company’s future prospects. Meanwhile, BTIG maintained a Neutral rating, acknowledging the company’s solid performance and fiscal year 2026 outlook that exceeded market expectations. Raymond (NSE:RYMD) James reiterated a Market Perform rating, noting the company’s accelerating revenue and bookings metrics, although it mentioned a lighter beat on NGS ARR.
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