Wells Fargo Reiterates Buy Rating on Palo Alto Networks, Keeps PT at $235

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the 10 Best AI Software Stocks to Buy Now. On August 15, Wells Fargo reiterated a Buy rating on Palo Alto Networks, Inc. (NASDAQ:PANW), keeping the price target at $235.

Andrew Nowinski from Wells Fargo maintained his rating on PANW ahead of its Q4 FY2025. The company posted strong revenue of $2.54 billion, up 16% year-over-year and exceeding estimates of $2.50 billion. The company’s projection was to post revenue between $2.22 billion and $2.25 billion, which it surpassed by quite a margin. The next-generation security ARR soared over 32% from a year ago to $5.6 billion.

“We exited fiscal year 2025 with an acceleration in RPO, and surpassed the $10 billion revenue run-rate milestone, positioning ourselves well for sustained growth ahead,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.

In the last two years, Palo Alto Networks has not missed earnings consensus while missing revenue estimates once. The majority of analysts covering PANW have reiterated their estimates over the last 30 days, suggesting the company will stay on course heading into FY2026. Nowinski also retains his rating on the cybersecurity firm, showing optimism on the company’s outlook. For FY2026, the company anticipates the total revenue between $10.47 billion to $10.52 billion, indicating year-over-year growth of 14%. Whereas, the next-generation security ARR is expected to be in the range of $7 billion to $7.10 billion, reflecting growth rate of 26-27% from a year ago.

Palo Alto Networks, Inc. (NASDAQ:PANW) offers comprehensive AI-powered security solutions across network, cloud, and security operations.

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Disclosure: None. This article is originally published at Insider Monkey.