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Analysts Bullish on PANW as AI-Driven Cybersecurity Demand Accelerates

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Must-Watch AI Stocks on Wall Street. On November 20, BTIG analyst Gray Powerll raised the price target on the stock to $248.00 while maintaining a Buy rating.

The price target raise follows PANW’s solid Q1 beat, modest FY26 raise, and a surprise entry into the observability space through its Chronosphere deal.

PANW reported revenue of $2,474 million for the quarter, topping both BTIG’s and Wall Street’s estimates of $2,462 million.  The revenue beat was largely driven by better-than-expected product revenue, noted the analysts, with services fractionally above forecasts.

It’s Next-Generation Security Annual Recurring Revenue (NGS ARR) was $5,850 million, up 29.4% year-over-year with $270 million in net additions. The firm noted how these numbers slightly exceeded its prior estimate of $5,840 million and the Street consensus of $5,834 million.

“In addition, PANW raised the midpoint of its FY26 revenue guide by $20MM to $10,520MM / 14.1% y/y, from $10,500MM / 13.9% previously while maintaining its NGS ARR outlook. All in, we thought it was a good quarter with most KPI’s landing about where we thought they would.”

Besides the performance, the biggest surprise of the night for the firm had been PANW’s announcement of a $3.35 billion acquisition of private company Chronosphere. According to the analysts, Chronosphere is a “highly regarded asset” with tangible synergies with PANW’s existing XSIAM product and SOAR capabilities.

The firm has made little changes to its FY26/FY27 revenue and FCF estimates.

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity.

While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PANW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks in Focus on Wall Street and 10 AI Stocks Analysts are Tracking Closely

Disclosure: None.

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