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PANW 
Palo Alto Networks Inc (PANW)
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Upturn Advisory Summary
01/07/2026: PANW (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
52 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $227.6
1 Year Target Price $227.6
| 26 | Strong Buy |
| 11 | Buy |
| 13 | Hold |
| 0 | Sell |
| 2 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -6.2% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/07/2026 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 135.15B USD | Price to earnings Ratio 117.52 | 1Y Target Price 227.6 |
Price to earnings Ratio 117.52 | 1Y Target Price 227.6 | ||
Volume (30-day avg) 52 | Beta 0.75 | 52 Weeks Range 144.15 - 223.61 | Updated Date 01/7/2026 |
52 Weeks Range 144.15 - 223.61 | Updated Date 01/7/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.65 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.69% | Operating Margin (TTM) 12.01% |
Management Effectiveness
Return on Assets (TTM) 3.18% | Return on Equity (TTM) 15.32% |
Valuation
Trailing PE 117.52 | Forward PE 48.31 | Enterprise Value 125680420000 | Price to Sales(TTM) 14.14 |
Enterprise Value 125680420000 | Price to Sales(TTM) 14.14 | ||
Enterprise Value to Revenue 13.15 | Enterprise Value to EBITDA 63.19 | Shares Outstanding 697000000 | Shares Floating 690246070 |
Shares Outstanding 697000000 | Shares Floating 690246070 | ||
Percent Insiders 0.89 | Percent Institutions 84.79 |
Upturn AI SWOT
Palo Alto Networks Inc
Company Overview
History and Background
Palo Alto Networks Inc. was founded in 2005 by Nir Zuk. The company is a pioneer in next-generation firewalls and cybersecurity. Key milestones include its IPO in 2012 and its continuous expansion into cloud security, endpoint protection, and threat intelligence.
Core Business Areas
- Platform Business: This segment focuses on the sale of hardware appliances and subscriptions for network security platforms, including next-generation firewalls.
- Cloud Business: This segment encompasses cloud-delivered security services that protect cloud-native applications and cloud infrastructure. It includes products like Prisma Cloud.
- Security Operations Business: This segment provides solutions for threat detection, incident response, and automation, including Cortex XDR.
Leadership and Structure
The leadership team is headed by CEO Nikesh Arora. The company operates with a divisional structure focused on its core product areas, with dedicated teams for research and development, sales, and marketing.
Top Products and Market Share
Key Offerings
- Product Name 1: Next-Generation Firewalls (NGFWs): Hardware appliances and virtual appliances that provide advanced threat prevention, application control, and user-based security. Competitors include Fortinet (FTNT), Cisco (CSCO), Check Point Software Technologies (CHKP).
- Product Name 2: Prisma Cloud: A comprehensive cloud security platform that offers security and compliance for multi-cloud environments, including cloud workload protection and cloud network security. Competitors include Microsoft Azure Security, Amazon Web Services (AWS) Security, CrowdStrike (CRWD), Check Point Software Technologies (CHKP).
- Product Name 3: Cortex XDR: An extended detection and response platform that unifies endpoint, network, and cloud data for advanced threat detection, investigation, and response. Competitors include CrowdStrike (CRWD), Microsoft (MSFT), SentinelOne (S).
Market Dynamics
Industry Overview
The cybersecurity industry is experiencing robust growth driven by increasing cyber threats, digital transformation, remote work trends, and stringent regulatory compliance requirements. The market is characterized by rapid innovation and consolidation.
Positioning
Palo Alto Networks is a leader in the cybersecurity market, particularly recognized for its innovation in next-generation firewalls and its expanding integrated platform approach. Its competitive advantages lie in its comprehensive product portfolio, strong R&D, and its ability to address evolving threat landscapes across network, cloud, and endpoint security.
Total Addressable Market (TAM)
The global cybersecurity TAM is estimated to be hundreds of billions of dollars and is projected to continue growing significantly. Palo Alto Networks is well-positioned to capture a substantial portion of this market due to its broad suite of solutions.
Upturn SWOT Analysis
Strengths
- Strong brand reputation and market leadership in next-generation firewalls.
- Comprehensive and integrated security platform approach (network, cloud, endpoint).
- Significant investment in research and development, driving innovation.
- Strong customer relationships and a large installed base.
- Successful transition to a subscription-based revenue model.
Weaknesses
- High cost of some of its solutions can be a barrier for smaller businesses.
- Complex product portfolio can sometimes be challenging to navigate.
- Reliance on a partner channel for sales to certain market segments.
Opportunities
- Continued growth in cloud security and the expansion of cloud-native applications.
- Increasing demand for integrated security operations platforms (XDR).
- Expansion into emerging markets and industries.
- Leveraging AI and machine learning for advanced threat detection and prevention.
- Potential for strategic acquisitions to enhance capabilities.
Threats
- Intense competition from established players and emerging startups.
- Rapidly evolving threat landscape requiring continuous product updates.
- Economic downturns impacting IT spending.
- Potential for data breaches impacting their own services or client data.
- Talent acquisition and retention in the competitive cybersecurity talent market.
Competitors and Market Share
Key Competitors
- Fortinet (FTNT)
- Cisco Systems (CSCO)
- Check Point Software Technologies (CHKP)
- CrowdStrike (CRWD)
- Microsoft (MSFT)
Competitive Landscape
Palo Alto Networks differentiates itself through its integrated platform strategy and advanced threat prevention capabilities, particularly in the enterprise segment. While competitors like Fortinet offer broad portfolios, and Cisco has extensive network security offerings, Palo Alto Networks' focus on cloud and AI-driven security, alongside its next-generation firewall leadership, provides a strong competitive edge. However, the market is highly competitive, and pricing pressures can exist.
Major Acquisitions
Cynomi
- Year: 2024
- Acquisition Price (USD millions): 200
- Strategic Rationale: To enhance its AI-driven security operations capabilities and provide more automated and intelligent security solutions.
ThousandEyes
- Year: 2020
- Acquisition Price (USD millions): 1000
- Strategic Rationale: To strengthen its cloud and network visibility offerings, enabling better monitoring and troubleshooting of application performance across hybrid and multi-cloud environments.
CloudGenix
- Year: 2021
- Acquisition Price (USD millions): 420
- Strategic Rationale: To bolster its secure access service edge (SASE) capabilities and expand its SD-WAN portfolio.
Growth Trajectory and Initiatives
Historical Growth: Palo Alto Networks has experienced substantial historical growth, transitioning from a firewall-centric company to a comprehensive cybersecurity platform provider. This has been fueled by organic product development and strategic acquisitions.
Future Projections: Analyst projections generally indicate continued strong revenue growth for Palo Alto Networks, driven by its expanding platform offerings and increasing market penetration in cloud security and security operations. Projections often anticipate further improvements in profitability.
Recent Initiatives: Recent strategic initiatives include a strong focus on integrating its platform offerings (e.g., Prisma Cloud, Cortex XDR), expanding its go-to-market strategy, and continued investment in AI-powered security solutions.
Summary
Palo Alto Networks is a dominant force in the cybersecurity industry, excelling with its integrated platform strategy and innovative product offerings. Its strengths lie in its strong market position, continuous R&D, and growing subscription revenue. The company needs to remain vigilant against intense competition and the evolving threat landscape. Continued focus on AI integration and expanding its cloud security dominance are key to its sustained success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Palo Alto Networks Investor Relations
- Industry Analyst Reports (e.g., Gartner, IDC)
- Financial News Outlets (e.g., Bloomberg, Reuters)
- Company SEC Filings
Disclaimers:
This JSON output is for informational purposes only and does not constitute financial advice. Market share data is an estimation and can vary depending on the source and reporting period. Financial performance and projections are subject to change and market volatility. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Palo Alto Networks Inc
Exchange NASDAQ | Headquaters Santa Clara, CA, United States | ||
IPO Launch date 2012-07-20 | Chairman & CEO Mr. Nikesh Arora C.F.A. | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 16413 | Website https://www.paloaltonetworks.com |
Full time employees 16413 | Website https://www.paloaltonetworks.com | ||
Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
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