For Immediate Release

Chicago, IL – September 3, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Palo Alto Networks, Inc. PANW, CrowdStrike Holdings, Inc. CRWD and Fortinet, Inc. FTNT.

Here are highlights from Monday's Analyst Blog:

Buy Palo Alto Networks Stock? Earnings Reveal a $9.1B AI Security Boom

Palo Alto Networks, Inc. delivered strong quarterly results and a solid outlook, reinforcing its competitive edge against peers, including CrowdStrike Holdings, Inc.and Fortinet, Inc. So, let's take a closer look at the results and the key factors that make PANW stock a buy now.  

PANW's $9.1B NGS ARR Highlights Strong AI Security Demand

Palo Alto Networks reported $9.1 billion in Next-Generation Security ARR (NGS ARR) in the fiscal fourth quarter of 2026, up 63% year over year, as mentioned in the company's Sept. 1 press release.  

Management also revealed that almost $1 billion in net new NGS ARR was added in the fiscal fourth quarter alone. This means the company is not only expanding its existing customer base but also seeing rapid adoption of Palo Alto Networks' newer security platforms. 

The strong ARR growth is particularly noteworthy, as it highlights Palo Alto Networks' potential for sustained revenue generation in the future. Meanwhile, the company's remaining performance obligations increased by 34% to $21.2 billion in the fiscal fourth quarter, providing the company with substantial forward revenue visibility. 

Looking ahead, Palo Alto Networks expects NGS ARR of $9.54 billion to $9.56 billion in the fiscal first quarter of 2027, up around 63% year over year. For the fiscal year 2027, the company projects NGS ARR of $11.075 billion to $11.175 billion, representing 22-23% year-over-year growth.  

This robust guidance suggests that Palo Alto Networks' growth story extends beyond a strong quarter, with management expecting substantial growth in the artificial intelligence (AI)/cybersecurity opportunity in the years ahead. 

Strong Growth, Profitability and Attractive Valuation Make PANW a Buy

Given Palo Alto Networks' scale, its remarkable NGS ARR growth and strong FY2027 support a bullish case for PANW stock, making it a compelling buy now.  

Importantly, Palo Alto Networks isn't growing at the expense of profitability. The company's non-GAAP operating income reached $1 billion in the fiscal fourth quarter, up roughly 30% year over year, while adjusted free cash flow totaled a healthy $1.3 billion.