Benchmark Raises Palo Alto Networks Price Target to $400

Benchmark raised its price target for Palo Alto Networks, Inc. to $400 from $340, maintaining a Buy rating. The adjustment comes ahead of the cybersecurity company's fourth-quarter fiscal 2026 report scheduled for September 1.

Analyst Yi Fu Lee expects the company to exceed consensus expectations for revenue, operating income, and next-generation security annual recurring revenue. This optimism is driven by strong demand for cloud security platforms and AI infrastructure. In the previous quarter, the company reported a 31% revenue increase to $3 billion, while its Next-Generation Security ARR grew 60% to $8.1 billion.

Despite this growth, the company currently trades at a premium valuation with a P/E ratio of 173.60x. Investors are now looking for the upcoming earnings report to prove that AI enthusiasm is translating into measurable ARR growth and a strong outlook for fiscal 2027.