Benchmark has increased its price target for Palo Alto Networks to $400 from $340 while maintaining a buy rating, citing growing enterprise demand for AI infrastructure security solutions.
The upgrade follows a Monday announcement by analyst Yi Fu Lee, who highlighted the company’s expanding portfolio of AI-driven security tools, including Prisma Cloud, Prisma SASE, Prisma AIRS, and Cortex XSIAM. Benchmark also pointed to the launch of Palo Alto’s Critical AI Defense Frontier Program, which focuses on AI-driven vulnerability discovery and cybersecurity enhancement.
Palo Alto Networks’ shares were trading at $351.44 on Tuesday, valuing the company at approximately $287 billion with a price-to-earnings ratio of 304. The firm is scheduled to report its fourth-fiscal-quarter 2026 earnings on September 1, with Benchmark expecting the company to exceed consensus estimates for next-generation security annual recurring revenue, total revenue, operating income, operating margin, free cash flow, and free cash flow margin for the quarter ending in July.
Other analysts have also raised their targets. Cantor Fitzgerald reiterated an overweight rating and lifted its target to $425, while Stifel increased its target to $415 and maintained a buy rating. UBS adjusted its target to $390 but kept a neutral stance. Citizens reaffirmed an above-market performance rating with a $415 target, noting the expansion of Palo Alto’s partner program in regions such as Japan and the United Kingdom.
