Palo Alto Networks (PANW) Soars on Strong Q4 Earnings, 9 Analysts Raise Price Target on Stock
The company posted better-than-expected Q4 revenue and EPS, while providing a robust fiscal 2025 financial outlook.

Palo Alto Networks (NASDAQ: PANW) saw a significant rise in its stock following the release of its fourth-quarter financial results, showcasing stronger-than-expected revenue and earnings. The cybersecurity leader posted a 12% revenue increase to $2.2 billion and adjusted earnings per share of $1.51, beating Wall Street expectations of $1.41. This performance led to a 7.2% surge in its stock, closing at $368.01. The company’s robust financial outlook for fiscal 2025 further bolstered investor confidence.
Platformization Strategy Drives Success
Much of Palo Alto’s recent success can be attributed to its platformization strategy. This approach bundles various cybersecurity products into a single, integrated platform, offering customers comprehensive solutions at competitive prices. Initially met with skepticism, the strategy is now proving to be a game-changer.
CEO Nikesh Arora, who has led the company through this transition, stated:
“We finished off the year with strong execution on our platformization strategy. As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”
This strategy helped Palo Alto achieve significant growth in its next-generation security offerings, particularly in cloud computing products. The company reported a 43% year-over-year increase in annual recurring revenue (ARR) from its cloud security platform, reaching $4.2 billion. According to analysts, this segment is expected to continue driving Palo Alto’s growth, even as the market for traditional firewall products slows.
Strong Financial Outlook for Fiscal 2025
Looking ahead, Palo Alto provided optimistic guidance for fiscal 2025. The company anticipates revenue growth between 13% and 14%, projecting total revenue in the range of $9.1 billion to $9.15 billion. Additionally, adjusted earnings per share for the fiscal year are expected to range from $6.18 to $6.31, surpassing market estimates of $6.19 per share. The company also expects a 19%-20% growth in remaining performance obligations (RPO), indicating a healthy pipeline of future revenue.
Analysts have responded positively to the company’s results and outlook, with several raising their price targets. Notably, KeyBanc analyst Eric Heath increased his target to $400, while RBC Capital’s Matthew Hedberg pushed his to $410, highlighting their confidence in Palo Alto’s long-term prospects.
Buyback Program Boosts Investor Confidence
In addition to its solid financial performance, Palo Alto’s board authorized an additional $500 million for stock repurchases, bringing the total buyback authorization to $1 billion through 2025. This move is seen as a positive signal for investors, underscoring the company’s commitment to returning value to shareholders.
Wedbush Securities analyst Daniel Ives emphasized that Palo Alto is well-positioned for future growth, stating in a client note:
“We continue to believe the platform approach in cybersecurity is the right long-term move for PANW. With strong quarter results and a solid outlook, the company is poised for a stronger market position.”
With consistent growth across key segments and a strong strategic vision, Palo Alto Networks remains a leading force in the rapidly evolving cybersecurity landscape.
PANW Stock: Updated Analyst Ratings & Price Targets
- Wells Fargo’s (NYSE: WFC) Andrew Nowinski maintained his Overweight rating and increased his price target on the stock from $385 to $416.
- RBC Capital’s (TSX: RY) (NYSE: RY) Matthew Hedberg maintained his Outperform rating and increased his price target on the stock from $390 to $410.
- Keybanc’s Eric Heath maintained his Overweight rating and increased his price target on the stock from $380 to $400.
- Bernstein’s Peter Weed maintained his Outperform rating and increased his price target on the stock from $364 to $399.
- Deutsche Bank’s (NYSE: DB) Brad Zelnick maintained his Buy rating and increased his price target on the stock from $330 to $395.
- BMO Capital’s (TSX: BMO) (NYSE: BMO) Keith Bachman maintained his Outperform rating and increased his price target on the stock from $334 to $390.
- Stifel’s (NYSE: SF) Adam Borg maintained his Buy rating and increased his price target on the stock from $360 to $385.
- Needham’s Alex Henderson maintained his Buy rating and increased his price target on the stock from $345 to $385.
- Piper Sandler’s (NYSE: PIPR) Rob Owens maintained his Neutral rating and increased his price target on the stock from $300 to $330.
PANW Stock Price Action
Shares of Palo Alto Networks stock closed trading today at $368.01, up 7.18%. YTD, PANW stock is up 27.37%. All time, PANW stock is up 1,977.98%.


View Palo Alto Networks Stock Chart on Barchart
Join the Discussion in the WVC Facebook Investor Group
Have a Stock Tip or New Story Suggestion? Email us at Invest@WealthyVC.com
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.