RBC Capital increased its price target for Palo Alto Networks (NASDAQ: PANW) to $475, up from $434, while keeping an Outperform rating. The move follows the company's fourth‑quarter earnings, which showed revenue of $3.41 billion, a 34% year‑over‑year rise that exceeded guidance, and non‑GAAP earnings per share of $1.02, topping the upper end of the forecast by four cents.
Analyst coverage broadly trended higher. Rosenblatt lifted its target to $415 from $355, maintaining a Buy rating. Morgan Stanley nudged its target to $394 from $387. TD Cowen reiterated a Buy rating with a $400 target, and Cantor Fitzgerald kept an Overweight stance at $425. UBS held a Neutral rating with a $390 target.
Palo Alto Networks' stock has delivered a 90% total return over the past year. The company now carries a market capitalization of $269 billion and a price‑to‑earnings ratio of 314. Free cash‑flow margin guidance for fiscal 2028 remains at 40%.
The firm reported that next‑generation security (NGS) annual recurring revenue grew 63% year‑over‑year to $9.1 billion. UBS noted roughly $1 billion of net new NGS ARR for the fiscal‑year‑2026 close and projected 22‑23% growth in NGS ARR to $2.025 billion for fiscal 2027, slightly below consensus expectations.
RBC highlighted the quarter's broad‑based strength across all platforms, progress on recent acquisitions, and the expanding role of artificial intelligence in the threat landscape as long‑term tailwinds. InvestingPro data indicated the shares were trading above fair value, placing Palo Alto Networks on its Most Overvalued list.
