Palo Alto Networks: Strong Growth, Platformization Progress, and Positive Outlook Drive Buy Rating

Andrew Nowinski, an analyst from Wells Fargo, reiterated the Buy rating on Palo Alto Networks (PANW – Research Report). The associated price target was raised to $235.00.

Andrew Nowinski has given his Buy rating due to a combination of factors that highlight Palo Alto Networks’ strong performance and growth potential. The company reported robust results for the third quarter of 2025, showing significant growth in net new annual recurring revenue (ARR) despite market disruptions caused by tariffs in April. Their product and subscription revenue growth outpaced competitors like Check Point and Fortinet, and the free cash flow margin remained strong at over 37%.
Additionally, Palo Alto Networks is making substantial progress in its platformization strategy, with a notable increase in the number of customers adopting multiple platforms. The company aims to achieve between 2,500 to 3,500 platformizations by fiscal year 2030, which is expected to contribute significantly to their $15 billion ARR target. The company’s Secure Access Service Edge (SASE) momentum is also noteworthy, with ARR growth of 36% year-over-year, far exceeding the market growth rate. These factors, combined with management’s optimistic guidance for the future, underpin Nowinski’s positive outlook on the stock.

Nowinski covers the Technology sector, focusing on stocks such as Check Point, Gen Digital, and CyberArk Software. According to TipRanks, Nowinski has an average return of 16.1% and a 54.75% success rate on recommended stocks.

In another report released today, Barclays also maintained a Buy rating on the stock with a $210.00 price target.