Wedbush raises PANW target after 31% revenue growth and $8 billion Next-Gen Security ARR, citing AI-driven demand.
Palo Alto Networks (NASDAQ:PANW) reported Q3 2026 revenue of $3 billion, up 31% year-over-year and above the $2.94 billion consensus. Earnings per share reached $0.85, surpassing the $0.80 estimate, driven by enterprise demand for AI infrastructure security and recent acquisitions.
Next-Generation Security annual recurring revenue grew 60% to $8 billion, while remaining performance obligations rose 36% to $18.4 billion. Non-GAAP net income climbed to $684 million, though GAAP results showed a $177 million loss due to acquisition costs.
Wedbush raised its price target to $340 from $300, maintaining an Outperform rating, and highlighted PANW’s position in its “AI 30” list of top AI-era investments.