Truist Securities Raises PT on Palo Alto Networks, Inc. (PANW) Following Strong Fiscal Q4 2025 Results

With strong revenue growth and significant hedge fund interest, Palo Alto Networks, Inc. (NASDAQ:PANW) secures a spot on our list of the 14 Best IT Stocks to Buy for the Long Term.

On August 19, 2025, Truist Securities increased its price target on Palo Alto Networks, Inc. (NASDAQ:PANW) from $205 to $220, maintaining a ‘Buy’ rating. This price revision follows the company’s strong fiscal Q4 results. The quarter experienced revenue growth of 15.8% YoY, surpassing analyst estimates, thanks to solid performances in SASE, XSIAM, and virtual firewalls. Furthermore, the gross margin stood at 73.6%, while levered free cash flow hit $3 billion.

Palo Alto Networks, Inc. (NASDAQ:PANW)’s strong quarterly performance was led by key growth drivers, including 32.2% NGS ARR growth and 24% RPO growth, both exceeding expectations. Moreover, the company reported encouraging FY2026 guidance, bolstering investor confidence. Meanwhile, Truist highlighted the company’s progress toward its ambitious $15 billion ARR target by 2030, driven by AI and identity-driven solutions.

With platforms such as Prisma Access, Prisma Cloud, Strata Cloud Manager, and virtual firewalls, Palo Alto Networks, Inc. (NASDAQ:PANW) delivers cybersecurity solutions across network, cloud, and hybrid environments. It is one of the best IT stocks.

While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.