JPMorgan Reinstates Palo Alto Networks (PANW) With Overweight Rating

Palo Alto Networks, Inc. (NASDAQ:PANW) is included among the 12 Best Long Term US Stocks to Buy Now.

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On December 17, JPMorgan reinstated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with an Overweight rating and a $235 price target. The move followed a period of restriction. The firm said Palo Alto offers one of the most complete, end-to-end security platforms in the market and sees the company as a long-term share gainer.

The company reported fiscal Q1 2026 results on November 19. For the quarter, revenue rose 16% year over year to $2.47 billion. That landed at the top end of management’s prior guidance. Service revenue climbed 14% to just over $2 billion. Subscription and support revenue both grew at the same pace, and Product revenue jumped 23% to $343 million.

Momentum around the platform strategy stayed solid. Instead of selling tools one by one, Palo Alto Networks, Inc. (NASDAQ:PANW) is bundling them into three core platforms. The company closed 16 new platform deals during the quarter. Earlier in November, it also teamed up with IBM on a Quantum-Safe Readiness offering. The goal is to help enterprises map cryptographic exposure, assess quantum risks, and move toward quantum-safe security.

Next-generation security continues to drive growth. Annual recurring revenue (ARR) from these offerings increased 29% to $5.85 billion. SASE remains the largest piece as its ARR rose 34% to more than $1.3 billion, and the customer base grew 18% to over 6,800.

Palo Alto Networks, Inc. (NASDAQ:PANW) is a global cybersecurity company providing AI-driven security across networks, cloud environments, and security operations.

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Disclosure: None.