Palo Alto Networks (PANW) secured a game-changing multibillion-dollar deal with Google Cloud. The partnership integrates Palo Alto’s security platform, Prisma AIRS, into Google’s AI tools. This move capitalizes on the urgent need for AI security as attacks on AI infrastructure surge.

The collaboration with Google Cloud enhances Palo Alto’s market presence, bringing immediate commercial success with over $2 billion in sales and 75 joint integrations. The partnership allows Palo Alto to embed security controls directly into Google’s AI development tools, streamlining protection for AI applications.

Palo Alto Networks reported robust financials for fiscal Q1, with revenue reaching $2.47 billion, a 16% increase year-over-year. The company’s platformization strategy gains momentum as customers consolidate security architectures. Notable deals include a $100 million contract with a telecom provider and a $33 million SASE contract with a federal agency.

Operating margins expanded to 30.2% in Q1, signaling strong operational leverage. Palo Alto’s acquisition of Chronosphere bolsters its observability platform and addresses AI infrastructure gaps. Management raised its fiscal 2030 ARR target to $20 billion, reflecting confidence in core business growth across SASE and XSIAM.

PANW stock has returned over 540% in the past decade, with forecasts predicting revenue to double by fiscal 2030. Currently trading at a forward FCF multiple of 31x, the stock could potentially gain 62% in the next three years if priced at 25x forward FCF. Analyst sentiment leans heavily towards a “Strong Buy” recommendation for PANW stock, with an average price target of $225.38.

Read more at Yahoo Finance: Is Palo Alto Networks Stock a Buy, Sell, or Hold Following Its Major Multibillion-Dollar Google Deal?