Palo Alto Networks, Inc. (NASDAQ:PANW) is included among the 12 Best Long Term US Stocks to Buy Now.
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On December 17, JPMorgan reinstated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with an Overweight rating and a $235 price target. The move followed a period of restriction. The firm said Palo Alto offers one of the most complete, end-to-end security platforms in the market and sees the company as a long-term share gainer.
The company reported fiscal Q1 2026 results on November 19. For the quarter, revenue rose 16% year over year to $2.47 billion. That landed at the top end of management’s prior guidance. Service revenue climbed 14% to just over $2 billion. Subscription and support revenue both grew at the same pace, and Product revenue jumped 23% to $343 million.
Momentum around the platform strategy stayed solid. Instead of selling tools one by one, Palo Alto Networks, Inc. (NASDAQ:PANW) is bundling them into three core platforms. The company closed 16 new platform deals during the quarter. Earlier in November, it also teamed up with IBM on a Quantum-Safe Readiness offering. The goal is to help enterprises map cryptographic exposure, assess quantum risks, and move toward quantum-safe security.
Next-generation security continues to drive growth. Annual recurring revenue (ARR) from these offerings increased 29% to $5.85 billion. SASE remains the largest piece as its ARR rose 34% to more than $1.3 billion, and the customer base grew 18% to over 6,800.
Palo Alto Networks, Inc. (NASDAQ:PANW) is a global cybersecurity company providing AI-driven security across networks, cloud environments, and security operations.
While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
