Evercore ISI has reaffirmed its Outperform rating on Palo Alto Networks while raising the stock’s price target to $415 from a prior level, reflecting improved partner sentiment and stronger demand pipelines.
The upgrade follows checks indicating sequential improvement in sales momentum across the company’s SASE and XSIAM platforms, alongside increased large-deal activity in the fourth fiscal quarter. Partners reported no broad-based pull-forward of firewall appliance orders between May and July, underscoring resilient hardware demand ahead of the company’s fiscal 2026 earnings release.
Analysts also highlighted accelerating revenue growth, with the company posting a 19.5% increase over the last twelve months. Evercore ISI pointed to sustained platformization efforts and rising urgency around AI-related cyber risks, citing a partner survey in which 67% of respondents described the threat as urgent, up from 26% in the prior quarter.
Palo Alto Networks’ shares have gained 102% year-to-date and 95% over the past 12 months, according to InvestingPro data. The stock last traded at $371.59, implying roughly 12% upside to Evercore ISI’s new target. The firm’s valuation places Palo Alto Networks’ market capitalization at $302.85 billion.
The rating aligns with a broader bullish stance from peers. BofA Securities reiterated a Buy rating with a $420 target, emphasizing next-generation security revenue growth and hardware performance despite potential supply chain risks. JPMorgan raised its target to $384, citing platform strength and solid free cash flow generation, while BTIG maintained a Buy rating at $380 and D.A. Davidson kept its Buy at $345, both citing strong channel feedback.
