Market Outlook Analysis for Applied Digital and Palo Alto Networks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Fool
- Applied Digital Stock Surge: Applied Digital's stock has surged 272% over the past year and is up 42% year-to-date, indicating strong growth potential in the AI data center sector, though it faces challenges with high debt and lack of profitability.
- Palo Alto Networks Revenue Growth: Palo Alto Networks reported a 16% year-over-year revenue increase in Q1 2026, with next-gen security annual recurring revenue (ARR) growing 29%, highlighting the effectiveness of its investments in AI applications and data center security.
- Acquisitions Driving Future Growth: Palo Alto Networks experienced a 4% decline in earnings per share last quarter due to acquisitions of CyberArk and Chronosphere, but these are expected to drive revenue growth, with projected ARR reaching $15 billion to $20 billion by fiscal year 2030, significantly up from the current $5.9 billion.
- Market Optimism: Despite an 18% drop in Palo Alto Networks' stock since late October, analysts remain optimistic, with 80% rating it as a buy and a median price target suggesting a 27% upside over the next 12 months.
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Analyst Views on PANW
Wall Street analysts forecast PANW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PANW is 232.49 USD with a low forecast of 157.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
28 Buy
5 Hold
1 Sell
Strong Buy
Current: 183.740
Low
157.00
Averages
232.49
High
265.00
Current: 183.740
Low
157.00
Averages
232.49
High
265.00
About PANW
Palo Alto Networks, Inc. provides comprehensive artificial intelligence (AI)-powered security solutions across network, cloud, security operations and AI. The Company focuses on four areas: Network Security, Cloud Security, Security Operations and Threat Intelligence and Advisory Services (Unit 42). Its network security platform comprises ML-powered firewalls, AI Runtime Security, and a Secure Access Service Edge (SASE) framework, which includes Prisma Access, Prisma SD-WAN, and Prisma Access Browser to secure remote workforces and branch offices. Its Cloud security is delivered via Prisma Cloud, a Code to Cloud platform that protects applications, data, GenAI environments, and the cloud-native stack throughout the development lifecycle. Its Unit 42 division provides intelligence-led consulting, incident response, managed detection and response, and threat hunting services. Its Prisma AIRS is an AI security platform which secures applications, agents, models and data.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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