Key Takeaways
- Wedbush analysts boosted their PANW price target to $340 from $300, keeping an Outperform rating following fiscal Q3 2026 results
- The company reported Q3 revenue of $3 billion, representing 31% year-over-year growth and surpassing the $2.94 billion estimate; earnings per share of $0.85 exceeded the $0.80 forecast
- Next-Gen Security annual recurring revenue surged 60% beyond $8 billion; deferred revenue and backlog climbed 36% to $18.4 billion
- Numerous Wall Street firms increased their price targets after earnings, with the average standing at $306.59 and a “Moderate Buy” consensus
- While institutional ownership expanded, company insiders offloaded more than $17.9 million worth of shares last quarter; PANW traded at $272.05 Friday, declining 2.6%
Palo Alto Networks (PANW) turned in impressive fiscal third-quarter 2026 numbers that exceeded expectations on both top and bottom lines, prompting Wall Street analysts to issue a series of upward target price adjustments.
Palo Alto Networks, Inc., PANW
Shares of PANW started Friday’s session at $272.05, representing a 2.6% decline for the day, retreating after a remarkable rally that pushed the stock up more than 65% during May 2026. Trading in a 52-week band between $139.57 and $302.95, the cybersecurity giant commands a market valuation of $221.72 billion.
The third-quarter performance was impressive across key metrics. Top-line revenue reached $3 billion, marking 31.1% annual growth and beating Wall Street’s $2.94 billion projection. Adjusted earnings of $0.85 per share outpaced analyst forecasts of $0.79. Chief Executive Nikesh Arora attributed the momentum to increasing deal flow as corporations invest in protecting AI infrastructure.
The company’s Next-Generation Security annual recurring revenue soared 60% to surpass $8 billion. Remaining performance obligations expanded 36% to $18.4 billion — a metric that provides strong visibility into future revenue streams.
Under Generally Accepted Accounting Principles, however, the picture was murkier. PANW posted a GAAP net loss of $177 million, a reversal from the $262 million profit recorded in the same period last year. Integration expenses related to the CyberArk and Chronosphere acquisitions weighed on results. Adjusted net income totaled $684 million.
Looking ahead to the complete fiscal 2026, management projects EPS between $3.770 and $3.790. Fourth-quarter guidance calls for $0.960 to $0.980 in earnings per share.
Wall Street Raises Price Expectations
Wedbush led the charge, increasing its valuation target from $300 to $340 while reaffirming its Outperform stance. The investment bank emphasized PANW’s AI-powered platform as a significant differentiator and included the stock in its exclusive “AI 30” portfolio.
BNP Paribas Exane adjusted its target upward from $220 to $330 with an Outperform designation. Scotiabank elevated expectations from $180 to $320. Barclays increased from $220 to $315, sustaining an Overweight position. Evercore maintained Outperform while establishing a $375 objective — representing the Street’s most optimistic forecast. Stephens upgraded to $300 while retaining an Equal Weight stance.
Among 48 covering analysts, the split shows 2 Strong Buy ratings, 37 Buy recommendations, 8 Hold positions, and 1 Sell rating. The consensus price target stands at $306.59.
Institutions Buy While Executives Sell
Among institutional players, BI Asset Management expanded its holdings by 47.8% during the fourth quarter, purchasing an additional 19,242 shares to reach 59,468 units valued at approximately $10.95 million. Pinebridge Investments established a fresh position worth around $74.6 million. Collectively, institutional shareholders control 79.82% of outstanding shares.
Insider transactions painted a contrasting picture. Executive Vice President Lee Klarich divested 62,904 shares at $258.65 on May 22, generating proceeds of $16.27 million and cutting his stake by 21.05%. Chief Accounting Officer Josh D. Paul sold 1,100 shares at $285.08 on June 1. Combined insider dispositions over the past three months totaled 72,076 units worth $17.93 million.
FBN Securities elevated PANW from Outperform to Strong Buy after reviewing the quarterly report. The company’s Q4 fiscal 2026 earnings announcement remains the next catalyst on investors’ calendars.
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