Is Wall Street Bullish or Bearish on Palo Alto Networks Stock?

With a market capitalization of $149.9 billion, Palo Alto Networks, Inc. (PANW) is one of the world’s leading cybersecurity companies, specializing in network security, cloud security, and AI-powered threat detection. The California-based company helps enterprises, governments, and organizations protect their digital infrastructure from cyberattacks, ransomware, data breaches, and other online threats.

Shares of the tech giant have underperformed the broader market over the past year. PANW stock has gained 4.5% over the past 52 weeks and 6.7% on a year-to-date basis. In comparison, the S&P 500 Index ($SPX) has returned 30.3% over the past year and 7.2% in 2026.

Narrowing the focus, PANW has also underperformed the State Street Technology Select Sector SPDR ETF (XLK), which rose 57.3% over the past 52 weeks and soared 17.9% this year.

PANW has lagged behind the broader market over the past year largely due to concerns about slowing growth and pressure on profitability despite continued demand for cybersecurity services. A key factor weighing on sentiment has been Palo Alto Networks’ aggressive acquisition strategy. The company pursued major deals to expand its AI and cloud security capabilities, but these acquisitions raised concerns about higher integration costs, margin pressure, and potential dilution. Management also lowered parts of its FY2026 earnings outlook, which disappointed investors even as revenue growth remained relatively strong.

For the fiscal year ending in June, analysts expect PANW to report a 30.5% year-over-year growth in adjusted EPS to $2.14. The company has a mixed earnings surprise history. It has surpassed the Street’s bottom-line estimates in three of the past four quarters, while missing on one occasion.

PANW has a consensus “Strong Buy” rating overall. Of the 54 analysts covering the stock, opinions include 40 “Strong Buys,” three “Moderate Buys,” and 11 “Holds.”

The configuration is bullish than a month ago when the stock had 39 “Strong Buy” suggestions. 

On May 6, Truist Securities analyst Junaid Siddiqui reiterated a “Buy” rating on PANW and raised the price target to $220 from $205, reflecting continued confidence in the company’s cybersecurity growth prospects and expanding AI-driven security platform strategy.

PANW’s mean price target of $209.18 indicates upside potential of 6.4% from the current market prices. The Street-high target of $265 suggests the stock could rise as much as 34.8%.