Palo Alto Networks stock rating reiterated by RBC Capital on strong results

Published 19/08/2025, 12:40
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Investing.com - RBC Capital has reiterated an Outperform rating on Palo Alto Networks (NASDAQ:PANW) with a price target of $232.00 following the company’s fiscal year-end results. The cybersecurity giant, currently valued at $117.55 billion, is trading near InvestingPro’s Fair Value estimate.

The cybersecurity firm posted strong financial results that exceeded expectations across all metrics, according to RBC Capital. With revenue growth of 13.91% and a robust gross profit margin of 73.56%, the company’s quarterly performance and forward guidance for fiscal year 2026 surpassed market expectations.

RBC Capital emphasized that Palo Alto Networks’ strong performance demonstrates that its proposed acquisition of CyberArk comes from a position of strength, countering concerns about potential organic weakness in the company’s business.

The investment firm described Palo Alto Networks as a "best-in-class cyber platform" that is benefiting from artificial intelligence applications across its product portfolio, including software firewalls, PRISMA AIRS, and Protect AI offerings.

RBC Capital views Palo Alto Networks as a "safe haven" for investors concerned about artificial intelligence impacts on other software segments, maintaining its Outperform rating and $232 price target.

In other recent news, Palo Alto Networks reported strong fiscal fourth-quarter results, surpassing expectations on both revenue and earnings. The company added $2.3 billion in Remaining Performance Obligations (RPO), with notable growth in product revenue and free cash flow margins. Analysts have responded positively to these results, with Scotiabank (TSX:BNS) raising its price target to $228 while maintaining a Sector Outperform rating. Similarly, Cantor Fitzgerald reiterated an Overweight rating with a $223 price target, highlighting the company’s momentum in platform consolidation. BMO Capital also increased its price target to $225, citing solid performance and strong guidance for future growth. Mizuho (NYSE:MFG) maintained an Outperform rating and a $210 price target, noting the company’s 16% year-over-year revenue growth, which exceeded expectations. Piper Sandler reiterated an Overweight rating with a $225 price target, emphasizing improved metrics such as RPO and new platformed customers. These developments reflect Palo Alto Networks’ consistent performance and positive outlook from various analyst firms.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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