Palo Alto Networks (5AP) AI Stock Analysis

Company Guidance

For fiscal first quarter 27, Palo Alto Networks expects NGS ARR of $9.54 billion to $9.56 billion or 63% growth, RPO of $20.8 billion to $20.9 billion or 34% to 35% growth, revenue of $3.3 billion to $3.31 billion or 33% to 34% growth, fully diluted share count of 37 to 44 million shares, and diluted non GAAP EPS in the range of $0.96 to $0.98 per share; for fiscal year 2027, it expects NGS ARR of $11.075 billion to $11.175 billion or 22% to 23% growth, RPO of $25.2 billion to $25.4 billion or 19% to 20% growth, revenue of $14.1 billion to $14.2 billion or 23% to 24% growth, operating margin of 29.5%, diluted non GAAP EPS in the range of $4.16 to $4.19 per Fully diluted share count of 844 to 847 million shares, and adjusted free cash flow margin of 38%; it expects 60% to 61% of the net new NGS ARR to fall in the second half of FY 27, network and AI security revenue growth of low double digits year over year, Cortex revenue up approximately 30% year over year, and IDERA revenue of approximately $1.5 billion, representing pro form a growth of high teens to 20%. year over year, and it has a target of $20 billion in NGS ARR by fiscal year 2030 and a 40% free cash flow margin target in fiscal 2028.