Cantor Fitzgerald has reiterated an Overweight rating on Palo Alto Networks (NASDAQ: PANW) and kept its 12-month price target at $220 after the company reported quarterly results. At a current share price of $150.40, Cantor’s target implies about 35% upside from prevailing levels.
Analyst coverage remains broadly favorable, with the stock carrying a strong Buy consensus among analysts, according to InvestingPro data.
Palo Alto’s quarter exceeded FactSet consensus expectations across several key metrics: revenue, next-generation security annual recurring revenue (Next-Gen ARR), remaining performance obligations (RPO), and operating margin. The company reported revenue of $9.56 billion, representing 15.3% year-over-year growth, and remained profitable on a trailing twelve-month basis.
Management pointed to contributions from recent acquisitions as one element supporting results. Cantor Fitzgerald expects the CyberArk and Chronosphere deals to add approximately $1.52 billion to ARR in fiscal 2026. The firm characterizes its own M&A contribution estimate as conservative, reflecting an assumed deceleration in CyberArk’s net new ARR (NNARR) contribution. To align with Palo Alto’s accounting practices, Cantor applies a 2% to 3% downward adjustment to CyberArk’s reported ARR.
The company also reported progress on its artificial intelligence efforts, with Cortex and AIRS singled out as areas of strength. Cantor and other analysts noted momentum across product lines that include SASE, XSIAM, and virtual firewalls.
Other broker responses to the quarterly report were mixed, balancing the solid operational results against concerns about acquisition-related costs and the pace of organic next-generation ARR expansion.
- DA Davidson lowered its price target to $190, citing limited upside in organic next-generation security ARR and RPO.
- TD Cowen maintained a Buy rating with a $255 price target, referencing the company’s solid performance and a reaffirmation of free cash flow targets.
- Truist Securities reiterated a Buy rating with a $200 price target, pointing to momentum in SASE, XSIAM, and virtual firewall businesses.
- Needham trimmed its price target to $200, attributing the change to carrying costs tied to the Chronosphere and CyberArk transactions while retaining a Buy rating.
- BMO Capital lowered its target to $200, kept an Outperform rating, and projected 13% to 15% year-over-year growth in organic net new next-generation security ARR over the coming two quarters.
These analyst moves underscore a dual narrative: the company outperformed on several financial metrics and is advancing its AI and security platforms, yet some market participants remain cautious about integration expenses and the sustainability of organic ARR growth following large acquisitions.
Cantor Fitzgerald’s maintained $220 price target and Overweight rating reflect conviction in Palo Alto’s strategic direction and the contribution expected from acquisitions, albeit through a conservative lens for CyberArk’s early ARR contribution. The broader analyst community’s reactions illustrate a range of assumptions about acquisition carry costs, organic growth trajectory in next-generation security ARR, and near-term recognition differences that influence valuation views.