Palo Alto Networks: Chronosphere And CyberArk Provide A Strong Portfolio For The AI Era
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Vinay Utham, CFA1.28K FollowersFollow5ShareSavePlay(13min)CommentsSummaryPalo Alto Networks maintains a BUY rating, with a $234 price target and ~20% upside, following robust Q1 results and raised FY26 guidance.Back-to-back acquisitions—$25B CyberArk and $3.35B Chronosphere—strategically position PANW for AI-driven cybersecurity leadership, despite market concerns over integration risks.Q1 revenue grew 15.7% y/y to $2.47B, non-GAAP EPS rose 19.2% y/y to $0.93, and RPOs expanded 24% y/y, supporting strong forward momentum.Integration risk and competition from CRWD's Falcon LogScale remain key watchpoints, but PANW's platformization strategy and AI focus underpin its growth thesis. peshkov/iStock via Getty Images Investment Thesis In my last article on Palo Alto Networks (PANW), published in August 2025, I analysed the company’s Q4 report and examined the key takeaways, including whether the company’s $25 billion mega-acquisition of CyberArk couldThis article was written byVinay Utham, CFA1.28K FollowersFollowAn independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PANW, CRWD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You