Piper Sandler has reiterated an Overweight rating on Palo Alto Networks and kept its $265.00 price target intact, a level that represents about a 62% upside from the prevailing share price of $163.50. According to InvestingPro data, analyst price targets for the cybersecurity firm span a range between $157 and $265.
The research house noted that Palo Alto Networks’ second-quarter results delivered a modest beat versus expectations and that management offered guidance consistent with prior outlooks. Key topline performance indicators aligned with forecasts, and the company’s updated fiscal 2026 guidance largely restated prior organic expectations.
Palo Alto Networks continues to post healthy growth at scale: the company reported revenue of $9.56 billion over the last twelve months, an increase of 15.3% year-over-year. Piper Sandler highlighted the sustained revenue expansion as evidence of durable demand for the firm’s security portfolio.
On the company’s earnings call, management emphasized activity on two fronts: integration of recent acquisitions and momentum from newer product offerings. Executives specifically pointed to strength in SASE and XSIAM during the quarter.
In its analysis, Piper Sandler described Palo Alto Networks as a long-term beneficiary in end-to-end AI security, noting the company’s moves to fold identity security and observability into its offering set through acquisitions. The firm framed these integrations as part of Palo Alto’s response to intensifying competition in agentic cybersecurity.
Despite what Piper Sandler characterized as significant market turbulence, the firm maintained its Overweight recommendation.
Additional company-level reporting of the quarter showed approximately 15% organic growth in Palo Alto Networks’ Q2 fiscal 2026 results. Revenue topped expectations by $14 million, aided by a stronger-than-anticipated contribution from the hardware firewall business.
Following the results, several sell-side firms adjusted their price targets. Scotiabank lowered its target from $228 to $180 while retaining a Sector Outperform rating, citing what it described as an absence of upward organic momentum. Bernstein SocGen Group trimmed its target slightly from $210 to $209 and kept an Outperform stance, referencing the influence of recent acquisitions. Morgan Stanley reduced its target from $245 to $223 but continued to carry an Overweight rating, noting the company’s strategic posture within emerging security trends.
Separately, Palo Alto Networks announced the acquisition of Koi, a company described as focused on Agentic Endpoint Security. The deal is aimed at strengthening the acquirer’s AI security capabilities and is intended to address vulnerabilities associated with AI-powered systems that operate with deep access to sensitive data.
Overall, the analyst reaffirmation from Piper Sandler centers on the company’s recent quarter that modestly outperformed, persistent double-digit growth in revenue, and a strategic emphasis on expanding capabilities in AI-related security domains via acquisitions and product momentum.