Overview
- Freedom Capital kept a Buy on Palo Alto Networks and cut its price target to $210, citing a strong quarter and temporary costs from recent deals.
- The company topped fiscal second-quarter expectations with $1.03 per share and $2.6 billion in revenue, beating consensus on both profit and sales.
- A Seeking Alpha analysis reports platform deals rose 35% year over year and net revenue retention held at 119%, pointing to sticky customer spending.
- Freedom Capital raised its revenue outlook but lowered non-GAAP EPS estimates because merger and acquisition expenses are compressing margins.
- The Seeking Alpha author argues Palo Alto’s mix of hardware and software raises switching costs and could soften AI-driven disruption, while projecting a 37% free-cash-flow margin by FY-26.