PANW expands cloud infrastructure in Asia-Pacific region to attract government and corporate clients.

From Nasdaq: 2025-03-14 10:15:00

Palo Alto Networks (PANW) is expanding its cloud infrastructure in Australia, India, Indonesia, Japan, and Singapore to offer secure browsing through the integration of Prisma Access Browser, complying with regional data residency needs. This move aims to attract government clients and companies with strict cybersecurity policies, amidst growing cloud demand in the Asia-Pacific region.

The Asia-Pacific cloud market is witnessing rapid growth, creating opportunities for players like PANW specializing in cloud security. U.S. cloud service providers dominate the market, but with a 16.6% CAGR, the region presents growth potential. PANW’s new cloud infrastructure will aid in meeting its Platformization goals, driving top-line growth and revenue expectations of $9.14 billion to $9.19 billion in fiscal 2025.

PANW faces challenges with increased capital expenditure for new cloud infrastructure and potential delays in IT spending amid a weakening global economy. Intense competition in the cybersecurity market has led to heavy investments in sales and marketing, impacting margins. The company’s expansion in the region will offer revenue growth opportunities but will also increase capex, posing a double-edged sword scenario.

Zacks Investment Research highlights a stock with the potential to double in value, emphasizing an innovative financial firm with a growing customer base and cutting-edge solutions. With the stock set to climb highest among their top picks, it shows promise for significant gains, surpassing previous successful picks like Nano-X Imaging.



Read more at Nasdaq: PANW Expands Cloud Infrastructure in Asia-Pacific Region