Bitcoin price today: falls to 2-week low below $113k ahead of Fed Jackson Hole
Investing.com - Palo Alto Networks (NASDAQ:PANW), currently valued at $117.5 billion and trading at a P/E ratio of 94x, received a vote of confidence as Evercore ISI maintained its Outperform rating and $220.00 price target following strong fourth-quarter results. According to InvestingPro data, the company maintains a "GOOD" financial health score, despite trading above its Fair Value.
The cybersecurity firm exceeded expectations across all metrics, with software firewalls driving significant performance gains. Software (ETR:SOWGn) form factors represented 56% of product revenue in the quarter, up from 44% year-over-year, and surpassed 40% on a trailing twelve-month basis. The company’s strong performance is reflected in its impressive 73.6% gross profit margin and 13.9% revenue growth over the last twelve months.
Palo Alto Networks secured larger cloud service provider deals, including a $60 million agreement with a top-four provider. The company’s Next-Generation Security Annual Recurring Revenue (NGS ARR) grew 32.2% year-over-year, while Remaining Performance Obligation (RPO) increased 24.4%.
For fiscal year 2026, management guided for 14% year-over-year revenue growth at the midpoint, exceeding analyst expectations of approximately 12.5%. Product revenue is projected to grow at a low-teens rate by the end of FY26, while NGS ARR is expected to increase 26.3% at the midpoint.
The company also raised its FY26 free cash flow target to 38.5% and provided an update on its pending CyberArk acquisition, which is expected to close in the next 6-9 months, with a combined company free cash flow margin target of over 40% by FY28. Want deeper insights? InvestingPro subscribers have access to 12 additional ProTips and comprehensive financial analysis, including detailed growth projections and valuation metrics.
In other recent news, Palo Alto Networks reported robust financial results for the fourth quarter of fiscal 2025, with non-GAAP earnings per share of $0.95, surpassing the consensus estimate of $0.88. The company’s revenue reached $2.54 billion, exceeding analyst expectations of $2.50 billion and marking a 15% increase from the same period last year. Palo Alto Networks also provided a fiscal year 2026 outlook that exceeded market expectations, as noted by BTIG. The company experienced a 32% year-over-year growth in Next-Generation Security Annual Recurring Revenue (NGS-ARR), reaching $5,580 million, which slightly surpassed both BTIG’s and the Street’s estimates.
Analysts have responded positively to these developments. Stifel reiterated a Buy rating with a $225 price target, highlighting the company’s accelerating bookings growth and strong RPO figures. TD Cowen also maintained a Buy rating with a $230 price target, citing the favorable macroeconomic environment for Palo Alto Networks. Meanwhile, Citizens JMP reiterated a Market Outperform rating with a $212 price target, emphasizing the company’s impressive earnings and revenue performance. Guggenheim, however, maintained a Sell rating but raised its price target to $135, acknowledging the company’s fiscal year 2026 guidance that exceeded consensus estimates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.