Palo Alto Networks’ AI-Driven Q3 Beat Prompts Citi to $340, Goldman to $330
PANW•Palo Alto Networks reported Q3 revenue and bookings ahead of consensus, driven by AI-fueled demand for next-generation security and double-digit ARR growth. Citi raised its price target to $340 and Goldman Sachs to $330, yet shares fell 5.6% in the session and another 2.3% after hours.
1. Q3 Earnings Beat Expectations
Palo Alto Networks reported Q3 revenue and bookings growth above consensus, driven by robust demand for next-generation security solutions and AI-focused products that lifted annual recurring revenue by a double-digit percentage.
2. Analyst Price Target Raises
Citi increased its price target to $340 from $210, citing sustained double-digit ARR growth momentum, while Goldman Sachs raised its target to $330 from $224, highlighting accelerating AI-driven security spending across observability and operations platforms.
3. Share Price Reaction and Sentiment
Shares declined 5.6% during the regular session and another 2.3% in after-hours trading as investors weighed visibility concerns, even as retail message volume surged over 1,500% with extremely bullish sentiment on online forums.
