The Zacks Analyst Blog Highlights Palo Alto Networks, CrowdStrike and Fortinet

Palo Alto Networks (PANW) posted Next-Generation Security annual recurring revenue of $9.1 billion in its latest quarter, marking 63% year-over-year growth, according to Zacks Investment Research. The cybersecurity firm added nearly $1 billion in net new ARR during Q4 of fiscal year 2026.

PANW projects NGS ARR will reach $11.075 billion to $11.175 billion in fiscal 2027, representing 22% to 23% year-over-year growth. Zacks assigned the stock a Rank #2 (Buy) rating, citing strong profitability, improving cash flow, and attractive valuation compared to peers including CrowdStrike (CRWD) and Fortinet (FTNT).

The guidance signals PANW expects to maintain momentum in its platform consolidation strategy, which has driven customers to adopt multiple security products under a single vendor rather than fragmented point solutions.