Raymond James analyst Adam Tindle reiterated a Market Perform rating on Palo Alto Networks, Inc. (PANW) after better-than-expected quarterly results and guidance. Revenue, RPO, and bookings metrics surpassed expectations, but there was a modest beat on NGS ARR. Forward guidance exceeded growth and profitability expectations, with a potential trajectory change post CyberArk acquisition.

Financial analyst projects Palo Alto’s future investments, expecting flat/decel services and accelerating product growth in FY26. The firm sees Palo’s product line with a larger software constitution as attractive for predictability. Post CyberArk acquisition, a new 40%+ free cash flow margin in FY28 could generate ~$6B of FCF with modest growth rates.

Palo Alto Networks, Inc. (PANW) is a leader in AI-powered cybersecurity. While acknowledging PANW’s potential, some AI stocks offer greater upside potential with less downside risk. For an undervalued AI stock benefiting from Trump-era tariffs and onshoring trend, see the free report on the best short-term AI stock.

Read more at Yahoo Finance: Raymond James Keeps Palo Alto (PANW) at Market Perform After Earnings Beat