Evercore ISI maintained an Outperform rating on Palo Alto Networks and increased its price target to $415 from $371.59, reflecting expectations for sustained demand and platform consolidation. The stock closed at $371.59 on August 28, down $11.26 or 2.94%, though it edged higher to $372.18 in after-hours trading.
The upgrade follows reports of robust pipelines across Palo Alto Networks' core offerings, including SASE and XSIAM, as well as heightened urgency among partners regarding AI-related cybersecurity risks. According to Evercore ISI, 67% of partners now describe customer urgency around AI security as urgent, up from 26% in the prior quarter. The firm also noted resilience in hardware demand from May to July, despite limited expectations for firewall appliance purchases.
Revenue growth over the last twelve months reached 19.5%, while the stock has surged 102% year-to-date and 95% over the past year, according to InvestingPro data. Evercore ISI’s $415 target implies roughly 12% upside from current levels, positioning it above several other recent assessments. BofA Securities maintained a $420 target, while BTIG kept its $380 target and JPMorgan set a $384 target. D.A. Davidson reiterated a $345 target.
The company is scheduled to report fiscal fourth-quarter 2026 earnings, with Evercore ISI citing potential upside in product revenue for the period, supported by price increases implemented in April. The analyst also highlighted ongoing platformization trends and broader consolidation within the cybersecurity sector as key drivers of demand.
Palo Alto Networks’ market capitalization stands at approximately $302.85 billion.
