Barclays Proactively Trimming Palo Alto Networks, Inc. (PANW)'s FY26 Forecast, Keeps $210 Target

We recently published a list of 10 AI Stocks Making Waves This Week. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against other AI stocks that are making waves this week.

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. On May 21, Barclays lowered the firm’s price target on the stock to $210 from $213 and kept an “Overweight” rating on the shares. According to the firm, Palo Alto’s fiscal Q3 metrics were broadly in line. Per the analyst, it had a better annual recurring revenue, but remaining performance obligation bookings were slightly short because of a tough April. Nevertheless, it is optimistic in the company’s ARR growth in Q4 and fiscal 2026 but is “proactively trimming” its FY26 revenue growth forecast to 13%.

Palo Alto Networks reported its earnings on May 19, 2025. The company achieved a significant milestone by surpassing $5 billion in next-generation security ARR, a 34% year-over-year increase. It particularly experienced strong growth in its AI-powered XSIAM product, noting an ARR growth of over 200% year-over-year. Total revenue was $2.29 billion, growing 15% year-over-year, while it also had a healthy free cash flow generation of $578 million.

Overall, PANW ranks 6th on our list of AI stocks that are making waves this week. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PANW and that has 100x upside potential, check out our report about this cheapest AI stock.

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