Wedbush Maintains Outperform Rating on Palo Alto Networks (PANW) After Q3 Report
On May 21, Wedbush analyst Daniel Ives reaffirmed his positive stance on Palo Alto Networks, Inc. (NASDAQ:PANW), maintaining an Outperform rating and a $225 price target.
The rating came after the company posted impressive Q3 2025 results, in which it beat expectations across key metrics. Palo Alto Networks' (NASDAQ:PANW) Q3 revenue hit the high end of guidance, reaching $2.29 billion. The company posted 15% year-over-year revenue growth while achieving significant milestones in its platformization strategy. Next-Generation Security (NGS) was the best-performing segment, for which the annual recurring revenue (ARR) surged 34% to $5.09 billion.
Ives highlighted strong growth across the company's key platforms, including XSIAM (Cortex), SASE (Prisma), and Product (Firewall), despite macro uncertainty in April. He also anticipates even better financial performance for Palo Alto Networks (NASDAQ:PANW) in the future on the back of increased AI adoption. Ives considers Palo Alto Networks (NASDAQ:PANW) among his top cybersecurity picks for the next 12-18 months. The company will benefit immensely from AI spending and cloud migration trends.
Palo Alto Networks is a global cybersecurity company that provides network security, cloud security, and endpoint protection solutions. Its key products include Next-Generation Firewalls, Prisma Cloud, Cortex XDR, and SASE solutions. It serves over 85,000 customers across 150+ countries.
While we acknowledge the potential of Palo Alto Networks, Inc. (NASDAQ:PANW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PANW and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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