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The Zacks Analyst Blog Highlights Palo Alto Networks, CrowdStrike and Fortinet
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For Immediate Release
Chicago, IL – September 3, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Palo Alto Networks, Inc. (PANW - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and Fortinet, Inc. (FTNT - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Buy Palo Alto Networks Stock? Earnings Reveal a $9.1B AI Security Boom
Palo Alto Networks, Inc. delivered strong quarterly results and a solid outlook, reinforcing its competitive edge against peers, including CrowdStrike Holdings, Inc. and Fortinet, Inc. So, let's take a closer look at the results and the key factors that make PANW stock a buy now.
PANW's $9.1B NGS ARR Highlights Strong AI Security Demand
Palo Alto Networks reported $9.1 billion in Next-Generation Security ARR (NGS ARR) in the fiscal fourth quarter of 2026, up 63% year over year, as mentioned in the company's Sept. 1 press release.
Management also revealed that almost $1 billion in net new NGS ARR was added in the fiscal fourth quarter alone. This means the company is not only expanding its existing customer base but also seeing rapid adoption of Palo Alto Networks' newer security platforms.
The strong ARR growth is particularly noteworthy, as it highlights Palo Alto Networks' potential for sustained revenue generation in the future. Meanwhile, the company's remaining performance obligations increased by 34% to $21.2 billion in the fiscal fourth quarter, providing the company with substantial forward revenue visibility.
Looking ahead, Palo Alto Networks expects NGS ARR of $9.54 billion to $9.56 billion in the fiscal first quarter of 2027, up around 63% year over year. For the fiscal year 2027, the company projects NGS ARR of $11.075 billion to $11.175 billion, representing 22-23% year-over-year growth.
This robust guidance suggests that Palo Alto Networks' growth story extends beyond a strong quarter, with management expecting substantial growth in the artificial intelligence (AI)/cybersecurity opportunity in the years ahead.
Strong Growth, Profitability and Attractive Valuation Make PANW a Buy
Given Palo Alto Networks' scale, its remarkable NGS ARR growth and strong FY2027 support a bullish case for PANW stock, making it a compelling buy now.
Importantly, Palo Alto Networks isn't growing at the expense of profitability. The company's non-GAAP operating income reached $1 billion in the fiscal fourth quarter, up roughly 30% year over year, while adjusted free cash flow totaled a healthy $1.3 billion.
Together, strong growth, recurring revenue, improving profitability, and robust cash generation strengthened Palo Alto Networks' long-term investment case. Moreover, from a valuation perspective, Palo Alto Networks appears attractive, with its forward price-to-earnings ratio of 88 below the Security industry's average of 147.47.??????
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
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The Zacks Analyst Blog Highlights Palo Alto Networks, CrowdStrike and Fortinet
For Immediate Release
Chicago, IL – September 3, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Palo Alto Networks, Inc. (PANW - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and Fortinet, Inc. (FTNT - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Buy Palo Alto Networks Stock? Earnings Reveal a $9.1B AI Security Boom
Palo Alto Networks, Inc. delivered strong quarterly results and a solid outlook, reinforcing its competitive edge against peers, including CrowdStrike Holdings, Inc. and Fortinet, Inc. So, let's take a closer look at the results and the key factors that make PANW stock a buy now.
PANW's $9.1B NGS ARR Highlights Strong AI Security Demand
Palo Alto Networks reported $9.1 billion in Next-Generation Security ARR (NGS ARR) in the fiscal fourth quarter of 2026, up 63% year over year, as mentioned in the company's Sept. 1 press release.
Management also revealed that almost $1 billion in net new NGS ARR was added in the fiscal fourth quarter alone. This means the company is not only expanding its existing customer base but also seeing rapid adoption of Palo Alto Networks' newer security platforms.
The strong ARR growth is particularly noteworthy, as it highlights Palo Alto Networks' potential for sustained revenue generation in the future. Meanwhile, the company's remaining performance obligations increased by 34% to $21.2 billion in the fiscal fourth quarter, providing the company with substantial forward revenue visibility.
Looking ahead, Palo Alto Networks expects NGS ARR of $9.54 billion to $9.56 billion in the fiscal first quarter of 2027, up around 63% year over year. For the fiscal year 2027, the company projects NGS ARR of $11.075 billion to $11.175 billion, representing 22-23% year-over-year growth.
This robust guidance suggests that Palo Alto Networks' growth story extends beyond a strong quarter, with management expecting substantial growth in the artificial intelligence (AI)/cybersecurity opportunity in the years ahead.
Strong Growth, Profitability and Attractive Valuation Make PANW a Buy
Given Palo Alto Networks' scale, its remarkable NGS ARR growth and strong FY2027 support a bullish case for PANW stock, making it a compelling buy now.
Importantly, Palo Alto Networks isn't growing at the expense of profitability. The company's non-GAAP operating income reached $1 billion in the fiscal fourth quarter, up roughly 30% year over year, while adjusted free cash flow totaled a healthy $1.3 billion.
Together, strong growth, recurring revenue, improving profitability, and robust cash generation strengthened Palo Alto Networks' long-term investment case. Moreover, from a valuation perspective, Palo Alto Networks appears attractive, with its forward price-to-earnings ratio of 88 below the Security industry's average of 147.47.??????
Palo Alto Networks currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.??????
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.