Palo Alto Networks Stock (PANW) Gains on Earnings Beat and Raise, Analyst Upgrade

Palo Alto Networks' stock (NASDAQ: PANW) is a notable pre-market mover today, up 6.72% at $188 off the back of strong earnings and a subsequent upgrade from Bank of America.

This surge follows a period where the stock had declined approximately 15% since the announcement of CyberArk's potential acquisition, creating an opportunity for investors, according to some analysts.

Bank of America upgraded Palo Alto Networks to ‘Buy' from ‘Neutral,' maintaining a price target of $215. This upgrade is underpinned by the company's impressive performance across key financial metrics in the fourth fiscal quarter. BofA analysts highlighted the effectiveness of Palo Alto's strategy and the potential for a 22% upside based on their price target, further fueling positive market sentiment.

The fiscal fourth-quarter results for 2025 revealed a revenue of $2.54 billion, a 16% increase compared to the previous year, surpassing analyst expectations. Adjusted earnings per share (EPS) also exceeded estimates, coming in at $0.95 against a consensus of $0.88. A key indicator of future growth, Next-Generation Security Annual Recurring Revenue (ARR), reached $5.6 billion, a substantial 32% year-over-year increase. The company's Remaining Performance Obligations (RPO) stood at $15.8 billion, demonstrating strong revenue visibility for the coming periods.

Palo Alto Networks' outlook for fiscal year 2026 is also key to the bullish move in the stock this morning. The company projects annual revenue between $10.48 billion and $10.53 billion, exceeding analyst estimates.

Adjusted EPS is expected to range from $3.75 to $3.85, also surpassing consensus expectations. This optimistic guidance reinforces the company's ability to capitalize on the growing demand for comprehensive cybersecurity solutions.

A beat and raise quarter, that has the street raising targets is a good setup for bulls. This will be particularly welcome, with PANW having previously underperformed YTD, down 2.53% YTD into yesterday's close. $200 will likely be a target for many in the near term, yet history tells us there have been bumps in this road.