Palo Alto Networks Value Surges to $295 Billion on AI Demand

Palo Alto Networks, Inc. saw its market value rise from approximately $113 billion to nearly $295 billion over the past 12 months, a gain of more than 150%. This expansion followed the acquisitions of identity-security firm CyberArk and observability company Chronosphere, as well as accelerating customer demand for securing artificial intelligence deployments.

For the fiscal third quarter ending April 30, the company reported revenue of $3.0 billion, marking a 31% year-over-year increase. Next-generation security annual recurring revenue grew 60% to $8.1 billion, though organic growth excluding acquisitions was 14%.

Despite these gains, the company reported a GAAP quarterly loss of $177 million, shifting from a $262 million profit the previous year due to the costs of absorbing the two acquisitions. Management is now targeting an adjusted free cash flow margin of 40% by fiscal 2028.