Benchmark raised its price target on Palo Alto Networks to $400 from $340 on Monday, maintaining a Buy rating as the cybersecurity company positions itself to capitalize on AI-related security demand.
The stock last traded at $351.44, valuing the company at $287 billion with a trailing price-to-earnings ratio of 304. Benchmark’s upgrade follows a broader trend among peers, with Cantor Fitzgerald lifting its target to $425, Stifel to $415, and Citizens reaffirming $415, while UBS trimmed its outlook to $390.
The upgrades reflect expectations that Palo Alto Networks will exceed consensus for next-generation security annual recurring revenue, revenue, operating income, and free cash flow in the fiscal fourth quarter ending July 2026. Analysts cited healthy cybersecurity demand and the company’s ability to convert AI enthusiasm into measurable growth through its Prisma cloud security, Prisma SASE, and Cortex XSIAM platforms.
Palo Alto Networks’ channel demand remains constructive, particularly for network security securing AI infrastructure and its Prisma AIRS agentic security offering. The company has also expanded its partner program in regions including Japan and the U.K., and launched the Frontier AI Critical Defense Program to enhance cybersecurity through AI-driven vulnerability discovery.
The firm is scheduled to report earnings on September 1, with investors monitoring its ability to sustain platformization and AI-driven revenue growth.
