Palo Alto Networks (NASDAQGS: PANW) Project 14% revenue growth, expanding AI security partnership

Palo Alto Networks (NASDAQGS: PANW) announced third quarter revenue of $2,289 million, reflecting a year-over-year increase, whilst net income declined. Additionally, the company has announced a partnership with GLEAN to enhance AI security and forecast a revenue growth rate of 14% for the fourth quarter of 2025. Over the past month, Palo Alto stock price has risen 16%. This is a move that coincides with strategic announcements in AI and security. Despite wider market volatility and a noticeable surge in Bitcoin, Palo Alto may have contributed to the upward movement of stocks in line with the overall resilience of the tech sector, despite focusing on partnerships and aggressive revenue outlook.

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A recent announcement by Palo Alto Networks, focusing on third-quarter revenue and strategic partnership with Glean, could bolster AI security initiatives. The move could drive revenue and revenue growth, contributing to an estimated 14% revenue growth in Q4 2025. The partnership aims to integrate AI-driven efficiency into the platform, possibly to enhance profitability through cost-cutting measures and larger transaction sizes. These factors could combine to create robust revenue forecasts, with analysts expecting it to reach $2.3 billion by May 2028, from $1.3 billion today.

Over the long term, Palo Alto Networks stocks have shown a strong upward trajectory, bringing exceptional gross revenues of 404.77% over the past five years. Over the past year, Palo Alto has outperformed both the broader US market and the software industry, signaling its resilience and market trends. This year, the market returned 11.1% and the software industry returned 16.1%.

The company’s current stock price is USD 188.69, trading at an analyst consensus price target of USD 211.2 and a 10.7% discount. This suggests a potential rise if the prediction assumption is true. While price movements reflect optimism from recent strategic initiatives, sustaining continuous execution and growth momentum is important to achieving these goals in a competitive environment.

Palo Alto Networks analysts consider forecasts in their growth reports.

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