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Palo Alto Networks stock jumps 13% ahead of Sept. 1 earnings
Analyst firms lifted price targets in the prior week, helping PANW rise about 13% in one session as the company prepares to report revenue guidance of around $3.35 billion for the July quarter.
Palo Alto Networks’ shares surged roughly 13% in a single trading session as investors looked ahead to the company’s quarterly earnings release on Sept. 1, with multiple analyst firms raising price targets in the week before the report. According to Yahoo Finance, Benchmark led off by increasing its price target on Aug. 24, followed by J.P. Morgan on Aug. 25, Robert W. Baird on Aug. 27, and Jefferies on Aug. 28. All firms maintained a Buy rating, and the raised targets contributed to the run-up in the stock.
The optimism centers on guidance for the July quarter, with management indicating revenue of around $3.35 billion, which would represent about 32% growth versus a year ago. The company also expects its subscription-based AI and cloud products to grow close to 60%, and it will be the first full quarter that includes CyberArk, the $25 billion identity security company Palo Alto recently bought.
Yahoo Finance also notes a key watch item for investors: because acquisitions can make revenue and ARR figures look stronger, the more important measure is the organic growth underneath and whether the company’s AI security push is translating into real, measurable recurring revenue rather than hype. The article adds that PANW shares have more than doubled so far this year, so a routine earnings beat may not be enough without additional upside in the quarter and guidance.