- Cybersecurity firm Palo Alto Networks (NASDAQ: PANW) has seen strong growth YTD, attracting institutional investors. HighPoint Advisor Group, Crestwood Advisors Group, and J.W. Cole Advisors have increased stakes. Institutional ownership is around 80%.
- Palo Alto’s latest earnings report showed revenue growth of over 15%, beating analyst estimates. Earnings per share were 80 cents, and the company expects a 28.2% to 28.5% operating margin for fiscal 2025. Analysts predict 19.3% earnings growth.
- Palo Alto’s next-gen security products Prisma and Cortex are driving growth, with ARR reaching $5.1 billion. The company expects ARR growth of 31% to 32% for the next quarter and fiscal year. This growth supports Palo Alto’s shift towards a unified security platform.
- Partnerships like the one with Okta Inc. drive Palo Alto’s multi-pronged approach, expanding services and enhancing security. While PANW is a compelling investment, its high P/E ratio and limited upside potential should be considered. Despite this, it remains a top cybersecurity firm for 2025.
Read more at Nasdaq: 3 Reasons Palo Alto Networks Is Becoming a Wall Street Favorite