Palo Alto Networks: AI Means Business, And The Valuation Isn't Low Enough Yet
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Mike Zaccardi, CFA, CMT9.14K FollowersFollow5ShareSavePlay(8min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryPalo Alto Networks is rated hold due to fair valuation and lagging performance versus the S&P 500.PANW delivered solid Q2 results with 15% revenue growth and 33% NGS ARR growth, but guidance was lukewarm and sentiment remains cautious.Valuation remains premium, with shares trading above historical price-to-sales and a mid-40s P/E multiple justified only by moderate EPS growth expectations.Technical signals are mixed; support at $140 is critical, and bulls must overcome a declining 200-day moving average for sustained upside. J Studios/DigitalVision via Getty Images Cybersecurity stocks have gotten caught up in the software selloff. Shares of Palo Alto Networks (PANW) plunged nearly 40% from their October 2025 high to the “Citrini Research” February 2026 low under $140. Ahead of earnings due out in May, I reiterate a hold rating.This article was written byMike Zaccardi, CFA, CMT9.14K FollowersFollowFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable. Having expertise in thematic investing, market events, client education, and compelling investment outlooks, I relate to everyday investors in a pithy way. I enjoy analyzing stock market sectors, ETFs, economic data, and broad market conditions, then producing snackable content for various audiences. Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto excite me. My thing is communicating finance with an educational and creative style. I also believe in producing evidence-based narratives using empirical data to drive home points. Charts are one of the many tools I leverage to tell a story in a simple but engaging way. I focus on SEO and specific style guides when appropriate.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.