New York, May 29, 2026, 17:07 (EDT)
- Palo Alto Networks finished the session 9.3% higher at $281.69, after hitting $283.71 earlier.
- The company is set to release its fiscal third-quarter earnings after the U.S. close on June 2.
- Recent catalysts: analyst target increases, a NATO cyber tie-up, and Portkey acquisition closing.
Palo Alto Networks shares jumped 9.3% to close at a record $281.69 on Friday. The cybersecurity name hit an intraday high of $283.71. Trading volume was about twice the usual level as buyers positioned ahead of the company’s earnings next week and on signs Wall Street wants more AI security names.
Tight timing for Palo Alto. The company will post fiscal Q3 earnings after the bell on June 2, and the webcast starts at 4:30 p.m. ET. That leaves its big May run heading into a crucial moment.
Investors are working out what a change in cybersecurity products could mean. Palo Alto on Friday said it finished its deal for Portkey. Portkey’s “AI Gateway” is a software layer that controls, checks and routes traffic from AI apps and bots. Palo Alto Networks
Jefferies moved its price target to $300 from $265, Wedbush bumped its target up to $300 from $225, Berenberg took its target to $290 from $215, and Benchmark set a $270 target, up from $200, according to Investing.com.
Jefferies’ Joseph Gallo kept his Buy on the stock ahead of fiscal Q3 results, but noted the shares are up 66% since April 10, making expectations higher, TipRanks reported. Gallo still sees AI-linked catalysts in fiscal 2027.
Benchmark said Palo Alto is “highly likely to modestly top” third-quarter consensus numbers. The firm pointed to next-generation security annual recurring revenue, total revenue, operating income and free cash flow margin all beating, including subscription revenue that is expected to repeat. TipRanks
Cybersecurity stocks bounced after a shaky spell. Zscaler’s outlook knocked the sector Wednesday, but Wedbush analyst Dan Ives told Barron’s it was “company specific execution issues,” not a signal for the whole group. Ives also wrote that AI could be the “biggest growth catalyst” for cybersecurity in twenty years. Barron’s
Other cyber names traded up Friday too. CrowdStrike jumped 8.9%, Fortinet added 6.4%. The day looked more like a sector bounce than a move tied to just one stock.
NATO said May 27 it set up new partnerships with Microsoft, Palo Alto Networks and ESET to boost cyber resilience, info sharing and coordination. The deals are strategic, not commercial. Jean Charles Ellermann-Kingombe, Assistant Secretary General for Cyber and Digital Transformation at NATO, said cyber deterrence is also about “shared norms and principles.” NATO
Palo Alto execs pitched Portkey as a piece of their expanding platform. Lee Klarich, chief product and tech officer, said the firm would take care of the “heavy lifting of integration.” Portkey CEO Rohit Agarwal called the buyout a way to “bridge the trust gap” as firms push AI past pilots and into daily business. Palo Alto Networks
Palo Alto Networks’ earnings are mixed heading into the new quarter. Fiscal Q2 revenue came in at $2.6 billion, up 15%, with next-gen security ARR up 33% to $6.3 billion. The company said it sees Q3 revenue in a range of $2.941 billion to $2.945 billion and expects adjusted earnings between 78 and 80 cents per share.
Palo Alto’s acquisition streak can also be a risk. The company has flagged that integration could stretch management, slow down synergies, or drive up costs. If the June 2 guidance falls short of the stock’s recent gains, shares could drop quickly.
Stocks edged higher Friday. The S&P 500 added 0.2%, the Dow gained 0.7% and the Nasdaq Composite was up 0.2% at 26,972.62, AP reported. But for Palo Alto, the big story is still ahead, with the company’s own catalyst coming in four days.
