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Can Prisma AIRS Become Palo Alto Networks' Next Major Growth Engine?
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Key Takeaways
PANW introduced Prisma AIRS 2.0 to deliver end-to-end security for AI agents, models and data flows.
Palo Alto Networks expanded Prisma AIRS integration with Google Cloud and other AI agent platforms.
PANW saw Prisma AIRS deal count more than double sequentially in Q1 FY26, signaling rising adoption.
Palo Alto Networks (PANW - Free Report) is doubling down on artificial intelligence (AI) model security at just the right time. AI adoption is moving fast with enterprises rolling out AI agents across coding, support and automation. However, many companies still lack strong security guardrails for agents, models and AI data flows. This is where PANW is positioning Prisma AIRS to protect this gap, aiming to secure AI from development, all the way through production.
PANW upgraded the capabilities of Prisma AIRS in the first quarter of fiscal 2026. PANW calls this Prisma AIRS 2.0, which completes the native integration of Protect AI and strengthens the platform for end-to-end AI protection. Prisma AIRS 2.0 provides AI Agent Security to protect AI agents during real-time use. It can help block prompt injection, tool misuse, and harmful agent actions. It helps customers discover and track both approved and unapproved shadow AI agents.
In December 2025, PANW expanded its partnership with Google Cloud. This places Prisma AIRS directly inside Google Cloud’s AI and developer services. Here, Prisma AIRS will be integrated with Google Cloud services, such as Vertex AI and Agent Engine. This will allow customers to secure AI models, data, and agents while they are running on Google Cloud. Apart from Google Cloud, PANW has integrated Prisma AIRS with several other AI agent platforms, including Factory, Glean, IBM, and ServiceNow. These integrations secure AI agents inside tools that customers already use.
In the first quarter of fiscal 2026, the number of Prisma AIRS deals more than doubled on a sequential basis, which highlights the growing adoption of Prisma AIRS. Overall, the above-mentioned factors show how Prisma AIRS’ surging usage could support PANW's future growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates revenue growth of around 14.1% and 13.2%, respectively.
How Competitors Fare Against PANW
Competitors like CrowdStrike (CRWD - Free Report) and SentinelOne (S - Free Report) are gaining ground through platform expansion and AI innovation.
CrowdStrike is using Charlotte AI to strengthen its Falcon Next-Generation Security Information and Event Management (SIEM). In the third quarter of fiscal 2026, CrowdStrike shared a customer example where SIEM and Charlotte AI were adopted together. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal.
Though comparatively a small competitor, SentinelOne posted third-quarter fiscal 2026 year-over-year growth of 23% in annual recurring revenues. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.
PANW’s Price Performance, Valuation & Estimates
Shares of Palo Alto Networks have lost 9.9% in the past six months compared with the Zacks Security industry’s decline of 12.3%.
PANW 6-month Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Palo Alto Networks trades at a forward price-to-sales ratio of 11.21X compared with the industry’s average of 12.22X.
PANW Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 and 2027 earnings implies year-over-year growth of 14.9% and 12.3%, respectively. Estimates for fiscal 2026 and 2027 have both been revised upward by a penny over the past 60 days.
Image Source: Zacks Investment Research
Palo Alto Networks currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Can Prisma AIRS Become Palo Alto Networks' Next Major Growth Engine?
Key Takeaways
Palo Alto Networks (PANW - Free Report) is doubling down on artificial intelligence (AI) model security at just the right time. AI adoption is moving fast with enterprises rolling out AI agents across coding, support and automation. However, many companies still lack strong security guardrails for agents, models and AI data flows. This is where PANW is positioning Prisma AIRS to protect this gap, aiming to secure AI from development, all the way through production.
PANW upgraded the capabilities of Prisma AIRS in the first quarter of fiscal 2026. PANW calls this Prisma AIRS 2.0, which completes the native integration of Protect AI and strengthens the platform for end-to-end AI protection. Prisma AIRS 2.0 provides AI Agent Security to protect AI agents during real-time use. It can help block prompt injection, tool misuse, and harmful agent actions. It helps customers discover and track both approved and unapproved shadow AI agents.
In December 2025, PANW expanded its partnership with Google Cloud. This places Prisma AIRS directly inside Google Cloud’s AI and developer services. Here, Prisma AIRS will be integrated with Google Cloud services, such as Vertex AI and Agent Engine. This will allow customers to secure AI models, data, and agents while they are running on Google Cloud. Apart from Google Cloud, PANW has integrated Prisma AIRS with several other AI agent platforms, including Factory, Glean, IBM, and ServiceNow. These integrations secure AI agents inside tools that customers already use.
In the first quarter of fiscal 2026, the number of Prisma AIRS deals more than doubled on a sequential basis, which highlights the growing adoption of Prisma AIRS. Overall, the above-mentioned factors show how Prisma AIRS’ surging usage could support PANW's future growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates revenue growth of around 14.1% and 13.2%, respectively.
How Competitors Fare Against PANW
Competitors like CrowdStrike (CRWD - Free Report) and SentinelOne (S - Free Report) are gaining ground through platform expansion and AI innovation.
CrowdStrike is using Charlotte AI to strengthen its Falcon Next-Generation Security Information and Event Management (SIEM). In the third quarter of fiscal 2026, CrowdStrike shared a customer example where SIEM and Charlotte AI were adopted together. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal.
Though comparatively a small competitor, SentinelOne posted third-quarter fiscal 2026 year-over-year growth of 23% in annual recurring revenues. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.
PANW’s Price Performance, Valuation & Estimates
Shares of Palo Alto Networks have lost 9.9% in the past six months compared with the Zacks Security industry’s decline of 12.3%.
PANW 6-month Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Palo Alto Networks trades at a forward price-to-sales ratio of 11.21X compared with the industry’s average of 12.22X.
PANW Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 and 2027 earnings implies year-over-year growth of 14.9% and 12.3%, respectively. Estimates for fiscal 2026 and 2027 have both been revised upward by a penny over the past 60 days.
Image Source: Zacks Investment Research
Palo Alto Networks currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.