The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 8 | 314.1x | 20.8x | Bottom tier | |
Growth | 68 | 19.5% | 6.1% | Top tier | |
Quality | 75 | 3.7% | 6.6% | Top tier | |
Safety | 91 | — | 0.7x | Top tier | |
Capital Return | 37 | — | 2.02% | Bottom tier | |
Momentum | 94 | 39.6% | 4.1% | Top tier | |
Sentiment | 54 | 30 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Palo Alto Networks, Inc. (PANW) is a global leader in the cybersecurity sector, providing comprehensive security solutions to protect networks, clouds, and endpoints. The company relies on its business model and revenue generation on selling advanced security hardware (such as next-generation firewalls) and cloud-based software-as-a-service (SaaS) subscriptions, alongside professional services and technical support. The company's current strategy primarily focuses on the platformization of security for customers, which helps reduce data fragmentation and accelerate response to complex cyber threats.
According to recent financial reports for the second quarter of fiscal year 2026, the company achieved revenue of $2.6 billion, with a gross profit of $1.9 billion and net income of $432.0 million, equivalent to earnings per share of $0.61. On a trailing twelve months (TTM) basis for 2026, total revenue reached $9.6 billion, with a gross profit of $7.1 billion and net income of $1.3 billion. In the third quarter of fiscal year 2026, the company continued its strong growth, recording quarterly revenue of $3.0 billion, a 31% increase compared to the previous year, with recurring service and software revenue reaching $2.4 billion, while product revenue stood at $594 million.
Palo Alto Networks (PANW) stock commands a strong positive analyst consensus recommending a 'Buy', with an average target price of $324.79, and estimates ranging from a low of $209 to an optimistic high of $375. The stock currently trades below the analysts' average target price, reflecting potential growth opportunities according to market estimates, especially with the company raising its annual financial outlook and non-GAAP profit margins.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Idira represents the next-generation identity security platform launched by Palo Alto Networks in the third quarter of fiscal year 2026 following the acquisition of CyberArk. This platform aims to address digital identity vulnerabilities by integrating privileged access management controls and protecting human, machine, and software (agentic) identities. Joint marketing efforts have begun strongly with the launch of over 1,000 sales coordination and engagement activities between the two organizations to drive platform adoption and secure AI-driven work environments.
The transition toward autonomous AI systems generates massive amounts of machine-to-machine data traffic, requiring real-time, intensive network inspection at runtime. This shift has positively impacted Palo Alto Networks' network security business, where next-generation firewall bookings grew by approximately 40% year-over-year in the third quarter of 2026. The company is capitalizing on this momentum by providing its fifth-generation hardware to AI data centers and sovereign infrastructure providers as an entirely new customer segment.
Prisma AIRS is considered the fastest-growing and expanding product in the entire history of Palo Alto Networks since its founding, designed to secure AI applications. During the third quarter of fiscal year 2026, this product successfully tripled its customer base to over 300 customers, compared to only 100 customers in the second quarter. The company's management expects the product to reach an annual recurring revenue run rate approaching the $100 million mark within the next two quarters, driven by accelerating demand to secure AI models in actual production.
Automated analysis for informational purposes only — not investment advice.
The Chronosphere platform represents an advanced observability and analysis tool acquired by Palo Alto Networks to expand its capabilities in managing massive data generated by AI workloads. The performance of this product exceeded internal company expectations in the third quarter of 2026, with its annual recurring revenue surpassing the $300 million mark, representing nearly double its value since the acquisition announcement last fall. Major leading AI companies, including two of the top five leading AI labs, rely on this platform to monitor their training and inference clusters.
Palo Alto Networks expects to achieve revenue ranging between $3.345 billion and $3.355 billion during the fourth quarter of 2026, with non-GAAP earnings per share ranging between $0.96 and $0.98. For the full fiscal year 2026, the company raised its guidance for total revenue to reach between $11.415 billion and $11.425 billion, representing a 24% annual growth. Management also expects to achieve operating margins ranging between 28.9% and 29.2%, and an adjusted free cash flow margin of 37.5%, highlighting the efficiency of its financial model and its ability to scale continuously.