PANWNASDAQ— Palo Alto Networks Inc Price & Analysis

Palo Alto Networks Inc

TECHNOLOGY — SOFTWARE - INFRASTRUCTURE

$335.10

-$1.88-0.56%

Market Cap: $274.64B; Mega Cap
P/E Ratio: 288.02; Fwd: 80
EPS (TTM): $1.17
Div. Yield: N/A

Technical Summary

RSI (14)44.29Neutral

SMA (50)$350.02Bearish

SMA (200)$234.42Bullish

MACD-3.2738Bearish

Bollinger$316.84 – $401.05Mid

Stochastic20.81Neutral

Theo Outlook

Palo Alto Networks (PANW) presents a bullish thesis supported by its $274.6B market capitalization, trailing P/E of 288.02, forward P/E of 80, TTM revenue of $11.48B with 34.4% quarterly revenue growth YoY, and EPS of $1.17 alongside 60.5% quarterly earnings growth. The premium valuation reflects strong positioning in cybersecurity amid rising demand, though the high P/E signals expectations for sustained expansion. Overall, the metrics point to robust growth potential in a high-margin software infrastructure sector.

Key catalysts include continued product innovation in its cybersecurity platform, global market expansion, and earnings momentum from recurring subscription revenue. With 34.4% YoY revenue growth and analyst target price of $390.50, the company benefits from increasing enterprise adoption of cloud security solutions and potential new platform launches. Earnings transcripts highlight momentum in next-generation firewalls and SASE offerings driving customer acquisition.

Risks encompass intense competition from vendors like CrowdStrike and Fortinet, regulatory scrutiny in data privacy and cybersecurity standards, and macro headwinds such as IT spending slowdowns in a higher-rate environment. Mitigations include PANW's diversified platform, 84.9% institutional ownership providing stability, and beta of 0.908 indicating lower volatility than peers. The company can offset pressures through operational efficiency and strategic partnerships. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 9, 2026.

Company Overview

Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.

Fundamental Snapshot

Revenue: $11.48B
EBITDA: $1.86B
Gross Profit: $8.09B
Operating Margin: 5.0%
Profit Margin: 2.7%
ROE: 1.7%
Book Value: $34.03
Beta: 0.91
52-Wk High: $398.88
52-Wk Low: $139.57
Avg Volume: 737.98K
PEG Ratio: 1.7

Frequently Asked Questions

What is Palo Alto Networks' business model?

PANW operates a subscription-based cybersecurity platform model, delivering next-generation firewalls, cloud security, and SASE solutions globally. It generates recurring revenue from software subscriptions and services, with TTM revenue of $11.48B and gross profit of $8.09B.

What are PANW's primary revenue sources?

Revenue primarily comes from product subscriptions (firewalls, Prisma Cloud) and support services. TTM revenue reached $11.48B with 34.4% YoY quarterly growth, driven by enterprise cybersecurity demand rather than one-time hardware sales.

What competitive advantages does PANW hold?

PANW benefits from its integrated cybersecurity platform, high switching costs, and strong brand in threat intelligence. With 84.9% institutional ownership and a beta of 0.908, it maintains resilience; forward P/E of 80 reflects growth expectations versus peers.

What are the key risks for PANW investors?

Key risks include competition, regulatory changes in data security, and macro IT budget cuts. The trailing P/E of 288.02 highlights valuation sensitivity, though mitigations via platform diversification and $274.6B market cap provide a buffer; no dividend yield applies.

What is PANW's growth outlook?

Outlook remains positive with 34.4% revenue growth, 60.5% earnings growth, and analyst target of $390.50. Latest quarter ended July 2026 shows EPS of $1.17; expansion in cloud security and global markets supports continued momentum despite high forward P/E of 80.