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Palo Alto Networks Inc (PANW)

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Upturn Advisory Summary
10/31/2025: PANW (2-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $217.67
1 Year Target Price $217.67
| 26 | Strong Buy | 
| 11 | Buy | 
| 13 | Hold | 
| 0 | Sell | 
| 2 | Strong Sell | 
Analysis of Past Performance
 Type  Stock  |  Historic Profit  2.78%  |  Avg. Invested days  43  |  Today’s Advisory  Consider higher Upturn Star rating   | 
 Upturn Star Rating  ![]()  |  Upturn Advisory Performance   |  Stock Returns Performance   | 
Key Highlights
 Company Size  Large-Cap Stock   |  Market Capitalization  149.07B  USD   |  Price to earnings Ratio  136.79   |  1Y Target Price  217.67   | 
 Price to earnings Ratio  136.79   |  1Y Target Price  217.67   | ||
 Volume (30-day avg)  52   |  Beta  0.97   |  52 Weeks Range  144.15 - 223.61   |  Updated Date  11/2/2025   | 
 52 Weeks Range  144.15 - 223.61   |  Updated Date  11/2/2025   | ||
 Dividends yield (FY)  -   |  Basic EPS (TTM)  1.61   | 
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  12.3%   |  Operating Margin (TTM)  13.53%   | 
Management Effectiveness
 Return on Assets (TTM)  3.07%   |  Return on Equity (TTM)  17.45%   | 
Valuation
 Trailing PE  136.79   |  Forward PE  54.95   |  Enterprise Value  139104086276   |  Price to Sales(TTM)  16.17   | 
 Enterprise Value  139104086276   |  Price to Sales(TTM)  16.17   | ||
 Enterprise Value to Revenue  15.08   |  Enterprise Value to EBITDA  71.67   |  Shares Outstanding  676870933   |  Shares Floating  662471871   | 
 Shares Outstanding  676870933   |  Shares Floating  662471871   | ||
 Percent Insiders  0.91   |  Percent Institutions  82.78   | 
 Upturn AI SWOT 
Palo Alto Networks Inc

Company Overview
 History and Background 
Palo Alto Networks was founded in 2005 by Nir Zuk, a former engineer at Check Point and NetScreen Technologies. Its initial focus was on developing advanced firewalls with application-level control. Over time, it expanded into a broader cybersecurity platform through organic development and acquisitions.
 Core Business Areas 
- Network Security: Provides firewall hardware and software to protect network perimeters.
 - Cloud Security: Offers cloud-native security solutions to protect public and private cloud environments.
 - Security Operations: Delivers security automation and incident response capabilities to help organizations detect and respond to threats.
 - Threat Intelligence: Provides threat intelligence services and feeds to help organizations stay ahead of emerging threats.
 
 Leadership and Structure 
Nikesh Arora is the current Chairman and CEO. The company operates with a functional organizational structure, with dedicated teams for engineering, sales, marketing, and support.
Top Products and Market Share
 Key Offerings 
- Market Share Data: Estimate 20% Market Share (Source: Various Industry Reports)
 - Next-Generation Firewalls (NGFWs): Palo Alto Networks' NGFWs provide application visibility, intrusion prevention, and advanced threat prevention. They hold a significant share of the firewall market. Competitors include Fortinet, Check Point, and Cisco.
 - Market Share Data: Estimate 10% Market Share (Source: Various Industry Reports)
 - Prisma Cloud: Prisma Cloud is a comprehensive cloud security platform providing visibility, compliance, and threat detection across multi-cloud environments. Competitors include CrowdStrike, Wiz, and Microsoft Defender for Cloud.
 - Cortex XDR: Cortex XDR is an extended detection and response platform that integrates security data across endpoints, networks, and cloud environments. Competitors include CrowdStrike Falcon Insight, SentinelOne Singularity XDR, and Microsoft Defender XDR.
 - Market Share Data: Growing rapidly, specific market share data is dynamic.
 
Market Dynamics
 Industry Overview 
The cybersecurity industry is experiencing rapid growth due to increasing cyber threats, digital transformation, and the proliferation of cloud computing. Demand for robust security solutions is high across all industries.
Positioning
Palo Alto Networks is a leading cybersecurity vendor known for its innovative technology and integrated platform approach. It competes with both established players and emerging startups.
Total Addressable Market (TAM)
Cybersecurity TAM is estimated at hundreds of billions of dollars, growing annually. Palo Alto Networks is positioned to capture a significant share through its broad portfolio.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
 - Comprehensive Product Portfolio
 - Innovative Technology
 - Large Customer Base
 - Extensive Threat Intelligence Capabilities
 
Weaknesses
- High Product Pricing
 - Complexity of Product Integration
 - Dependence on Large Enterprises
 - Potential for Overlapping Product Functionality
 - Integration challenges post acquisition
 
Opportunities
- Growing Cloud Security Market
 - Increasing Demand for Automation
 - Expansion into New Geographies
 - Strategic Partnerships
 - Rising number of cyber threats.
 
Threats
- Intense Competition
 - Rapid Technological Changes
 - Economic Downturns
 - Evolving Threat Landscape
 - Data Breaches
 
Competitors and Market Share
 Key Competitors 
- FTNT
 - CHKP
 - CSCO
 
Competitive Landscape
Palo Alto Networks offers a comprehensive platform, while competitors focus on specific areas or price points.
Major Acquisitions
Expanse
- Year: 2020
 - Acquisition Price (USD millions): 800
 - Strategic Rationale: Expanded attack surface management capabilities.
 
Bridgecrew
- Year: 2021
 - Acquisition Price (USD millions): 195
 - Strategic Rationale: Enhanced cloud security posture management.
 
Growth Trajectory and Initiatives
Historical Growth: Palo Alto Networks has experienced strong revenue growth over the past decade, driven by increased demand for its cybersecurity solutions.
Future Projections: Analysts project continued revenue growth, driven by cloud security and security operations solutions.
Recent Initiatives: Recent initiatives include strategic acquisitions, product innovation, and expansion into new markets.
Summary
Palo Alto Networks is a strong player in the cybersecurity industry with a comprehensive platform and solid growth trajectory. Its high product pricing can be a drawback, but its continuous innovation and strategic acquisitions bolster its market position. The company needs to watch out for increasing competition and evolving threat landscapes to maintain its leadership.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings
 - Industry Analyst Reports (Gartner, Forrester)
 - Palo Alto Networks Investor Relations
 - Third party financial data providers
 
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market data and financial figures are estimates and may vary.
 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  16068   |  Website  https://www.paloaltonetworks.com   | 
 Full time employees  16068   |  Website  https://www.paloaltonetworks.com   | ||
Palo Alto Networks, Inc. provides cybersecurity solutions 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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