Is Palo Alto Networks Stock a Buy After an 80% Gain and Strong Earnings?
Palo Alto Networks has seen its stock rise over 80% in 2026, driven by increased demand for cybersecurity solutions following the discovery of vulnerabilities related to Anthropic's Mythos models. The company reported strong fiscal Q4 results with revenue up 34% year-over-year to $3.41 billion and subscription and support revenue rising 36%. Its platformization strategy is paying off, with net new additions doubling from the previous quarter and high customer retention rates. The stock dipped after a robust earnings report due to lofty expectations following its strong performance this year. Palo Alto also made strategic acquisitions of Chronosphere and CyberArk, which have exceeded early expectations. The company forecasts continued growth in fiscal 2027 with revenue expected to rise by 33%–34%. Despite the recent pullback, investors are evaluating whether it's a good entry point given its high forward price-to-sales ratio. Palo Alto sees AI as a major tailwind for cybersecurity and is positioning itself through unified platforms that offer real-time defense. Its next-generation security ARR surged 63% to $9.1 billion in the latest quarter, indicating strong momentum.
Tickers: $PANW
Topics: acquisitions AI security Palo Alto Networks platformization strategy