Palo Alto Networks on Track to Hit Fiscal Q4 Recurring Revenue Outlook, Oppenheimer Says

MT Newswires Live08-05

Palo Alto Networks (PANW) is positioned to meet its fiscal Q4 Next-Generation Security annual recurring revenue, or NGS-ARR guidance, driven by upselling momentum and accelerating platform consolidation, Oppenheimer said in a Tuesday note.

The company is set to release its fiscal Q4 results on Sept. 1 and Oppenheimer estimates more than 60% growth in NGS-ARR, citing positive checks, consolidation deals and momentum of Palo Alto's Cortex XSIAM, Prisma SASE, and Prisma AIRS products.

For fiscal 2027, Palo Alto is likely to issue an in-line guidance initially, setting the stage for a potential beat, the brokerage said. The consensus forecast of about 22.7% growth in fiscal 2027 NGS-ARR also seems achievable as certain fiscal Q3 bookings are translating to subscriptions that could convert in the coming fiscal year, Oppenheimer added.

Oppenheimer raised its price target on Palo Alto Networks to $400 from $350, with an outperform rating.

Price: 359.50, Change: +12.37, Percent Change: +3.56

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