Palo Alto Networks (PANW) Stock: Analysts Are Bullish — So Why Are Insiders Selling?

TLDR

• Wedbush raised its price target on PANW from $300 to $340, maintaining an Outperform rating after Q3 FY2026 earnings
• PANW posted Q3 revenue of $3 billion, up 31% year-over-year, beating the consensus of $2.94 billion; EPS of $0.85 beat the expected $0.80
• Next-Generation Security ARR grew 60% to over $8 billion; remaining performance obligations rose 36% to $18.4 billion
• Multiple analysts raised price targets post-earnings, with an average target of $306.59 and a consensus “Moderate Buy” rating
• Institutional buying picked up, though insiders sold over $17.9 million in stock in the last quarter; PANW opened Friday at $272.05, down 2.6%

Palo Alto Networks (PANW) delivered a strong fiscal Q3 2026, beating on both revenue and earnings, and the analyst community has responded with a wave of upward price target revisions.

Palo Alto Networks, Inc., PANW

PANW opened Friday at $272.05, down 2.6% on the day, pulling back after a run that saw the stock gain more than 65% in May 2026 alone. The 52-week range sits between $139.57 and $302.95, and the stock carries a market cap of $221.72 billion.

The Q3 results were clean. Revenue came in at $3 billion, up 31.1% year-over-year and ahead of the $2.94 billion consensus. EPS of $0.85 beat the expected $0.79. CEO Nikesh Arora pointed to accelerating bookings as enterprises lean on PANW to secure AI infrastructure.

Next-Generation Security ARR jumped 60% to exceed $8 billion. Remaining performance obligations grew 36% to $18.4 billion — a figure that signals strong forward revenue visibility.

On a GAAP basis, the quarter was less clean. PANW reported a net loss of $177 million, compared to a $262 million profit a year ago. Acquisition-related costs tied to CyberArk and Chronosphere were the main drag. Non-GAAP net income came in at $684 million.

For the full fiscal year 2026, PANW guided for EPS of $3.770 to $3.790. Q4 guidance sits at $0.960 to $0.980 EPS.

Analyst Targets Move Higher

Wedbush was among the first to react, bumping its price target from $300 to $340 while keeping its Outperform rating. The firm highlighted PANW’s AI-native platform as a key competitive edge and placed the stock on its “AI 30” list.

BNP Paribas Exane moved its target from $220 to $330 with an Outperform rating. Scotiabank lifted its target from $180 to $320. Barclays went from $220 to $315, maintaining Overweight. Evercore kept its Outperform and set a $375 target — the highest on the Street. Stephens raised to $300 but stuck with Equal Weight.

Across 48 analysts, the breakdown is 2 Strong Buy, 37 Buy, 8 Hold, and 1 Sell. The average target is $306.59.

Institutional Buying, Insider Selling

On the institutional side, BI Asset Management raised its stake by 47.8% in Q4, adding 19,242 units to bring its total to 59,468, worth roughly $10.95 million. Pinebridge Investments entered a new position worth approximately $74.6 million. Institutional investors now own 79.82% of the stock.

Insider activity told a different story. EVP Lee Klarich sold 62,904 units at $258.65 on May 22, a transaction totalling $16.27 million and representing a 21.05% reduction in his position. CAO Josh D. Paul sold 1,100 units at $285.08 on June 1. Total insider sales in the last quarter came to 72,076 units valued at $17.93 million.

FBN Securities upgraded PANW from Outperform to Strong Buy following the earnings release. PANW’s Q4 FY2026 earnings are next on the calendar.

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