To The Moon

Palo Alto Networks Set to Report Strong Fiscal Q4 as Platform Strategy Gains Momentum

$Palo Alto Networks(PANW)$   is scheduled to report its fiscal Q4 results on Monday after market close. Analysts estimate Palo Alto Networks to post revenue of USD2.50B for 2025Q4, up 14.28% YOY;EPS is estimated to be USD0.464, down 8.16% YoY.

Palo Alto Networks' fiscal Q4 results are expected to reflect the company's continued strength in cybersecurity deal activity, driven by growing momentum in its platformization strategy as it heads into fiscal year 2026, Wedbush Securities said in a note Friday.

Analysts, including Daniel Ives, said that Palo Alto Networks remains one of their top cybersecurity investment picks for the next 12 to 18 months. They added that the company is developing a more stable pipeline of deals related to its platformization efforts and expanding cloud adoption. Based on their recent checks, deal activity has picked up over the past few months, reinforcing this trend.

The analysts added that although the stock has recently experienced a sell-off related to its acquisition of $CyberArk (CYBR.US)$, they see this as a "golden buying opportunity" as Palo Alto Networks nears completion of its platform-based strategy, offering customers a one-stop cybersecurity solution.

The company's long-term goal of reaching $15 billion in next-generation security, or NGS, annual recurring revenue, or ARR, by 2030 appears achievable, the analysts said. Palo Alto Networks is currently guiding for NGS ARR between $5.52 billion and $5.57 billion for the quarter, representing 31% to 32% year-over-year growth, and remaining performance obligations between $15.20 billion and $15.30 billion, up 19% to 20%. The analysts added that they view this guidance as conservative.

"Cybersecurity is a clear 2nd/3rd derivative play on the artificial intelligence revolution, with Palo Alto Networks in the driver's seat to gain market/mind share in the cybersecurity landscape" as enterprise customers increasingly prioritize security in their strategic AI projects over the coming year, the analysts said.

Wedbush Securities is maintaining its outperform rating and $225 price target on the stock.

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