
PANW Stock Forecast & Price Target
PANW Analyst Ratings
Bulls say
Palo Alto Networks has demonstrated a noteworthy transition towards software offerings, with software form factors now accounting for 44% of trailing 12-month product revenue, up from 38% the previous year, indicating a strategic shift from hardware. The company reported a strong performance in both Subscription Revenue and Support Revenue, each growing by 14% year-over-year, alongside a notable increase in Annual Recurring Revenue (ARR), which reached $5.85 billion, up 29% year-over-year. Additionally, the firm's solid customer growth, including an 18% year-over-year increase in customer count and a significant improvement in gross and operating margins, reinforces a robust financial outlook for the future.
Bears say
Palo Alto Networks faces a challenging financial outlook due to a notable slowdown in IT spending, which may adversely affect the company's performance after a period of increased growth during COVID. The company's net new Next-Generation Security Annual Recurring Revenue (NGS ARR) decreased by 10% year-over-year, indicating potential difficulties in market demand for its products. Additionally, heightened competition and slower-than-expected adoption of its cloud security solution could undermine Palo Alto's value proposition in a rapidly evolving cybersecurity landscape.
This aggregate rating is based on analysts' research of Palo Alto Networks and is not a guaranteed prediction by Public.com or investment advice.
PANW Analyst Forecast & Price Prediction
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