10 AI Stocks Making Waves This Week

6. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On May 21, Barclays lowered the firm’s price target on the stock to $210 from $213 and kept an “Overweight” rating on the shares. According to the firm, Palo Alto’s fiscal Q3 metrics were broadly in line. Per the analyst, it had a better annual recurring revenue, but remaining performance obligation bookings were slightly short because of a tough April. Nevertheless, it is optimistic in the company’s ARR growth in Q4 and fiscal 2026 but is “proactively trimming” its FY26 revenue growth forecast to 13%.

Palo Alto Networks reported its earnings on May 19, 2025. The company achieved a significant milestone by surpassing $5 billion in next-generation security ARR, a 34% year-over-year increase. It particularly experienced strong growth in its AI-powered XSIAM product, noting an ARR growth of over 200% year-over-year. Total revenue was $2.29 billion, growing 15% year-over-year, while it also had a healthy free cash flow generation of $578 million.