Palo Alto Networks rises on AI security concerns and upgrades

Investing.com -- Palo Alto Networks stock climbed 8.2% in morning trading Monday. The cybersecurity sector rallied as concerns over AI safety increased, with CrowdStrike and Okta also gaining on expectations that companies will boost spending on security infrastructure to address risks from autonomous AI systems.

Wedbush initiated coverage of Palo Alto Networks at Outperform with a $400 price target on September 10, adding the stock to its Best Ideas List. Goldman Sachs raised its price target to $390 following the company's fiscal fourth quarter 2026 results.

The company reported fiscal Q4 2026 results on September 1, with revenue rising 34% year-over-year to $3.41 billion. Next-generation security annual recurring revenue increased 63% to $9.1 billion. Adjusted earnings per share of $1.02 exceeded the $0.98 consensus estimate.

Palo Alto Networks issued fiscal year 2027 revenue guidance of $14.1 billion to $14.2 billion, above analyst expectations.

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