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Investing.com - KeyBanc maintained its Sector Weight rating on Palo Alto Networks (NASDAQ:PANW) ahead of the cybersecurity company’s fiscal first-quarter earnings report, scheduled for November 19. According to InvestingPro data, the company currently trades at a P/E ratio of 128.8, reflecting its high earnings multiple.
The firm expects Palo Alto Networks to deliver results generally in line with expectations for both the first quarter and fiscal year 2026 guidance, based on its channel checks. Analysts forecast EPS of $4.02 for fiscal 2026, with revenue growth projected at 14%.
KeyBanc noted that partner expectations for the company to meet or exceed targets have moderated compared to the fourth quarter, though they remain consistent with first-quarter fiscal 2025 levels.
International business checks showed more negative trends than U.S. operations, which KeyBanc attributed primarily to short-term disruption from Palo Alto’s go-to-market strategy adjustments.
Despite mixed third-quarter results from industry peers, KeyBanc indicated that partners continue to view Palo Alto Networks as better positioned due to its broader portfolio and stronger execution compared to competitors.
In other recent news, Palo Alto Networks is set to release its fiscal first-quarter 2026 earnings report, with several analysts expressing optimism about the company’s performance. Stifel has reiterated its Buy rating and set a price target of $225, following checks with key cybersecurity resellers. TD Cowen also maintained a Buy rating and raised its price target to $255, citing positive trends such as the adoption of artificial intelligence solutions and a firewall refresh cycle contributing to a 29% year-over-year growth in Next-Generation Security Annual Recurring Revenue. UBS increased its price target to $230 but kept a Neutral rating, noting a "decent setup" for the upcoming earnings. Jefferies, on the other hand, boosted its price target to $250, maintaining a Buy rating and expressing confidence in Palo Alto Networks’ ability to meet its first-quarter metrics.
Additionally, Palo Alto Networks launched Cortex AgentiX, a platform designed to enhance security for enterprises deploying AI agents. This new offering aims to assist security operations centers in managing automated cyber threats while reducing manual efforts. These developments collectively highlight the company’s strategic focus on innovation and growth in the cybersecurity sector.
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