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    How Investors Are Reacting To Palo Alto Networks (PANW) Federal OneGov Win And Rising AI-Cloud Risks

    Simply Wall St·12/17/2025 22:15:54
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    • Palo Alto Networks recently underscored the rising security risks from enterprise AI and cloud adoption in its 2025 State of Cloud Security Report, while also securing a long-term U.S. General Services Administration OneGov agreement to supply AI security, cloud security, next-gen firewalls and Zero Trust solutions to federal agencies through January 2028.
    • These developments highlight how escalating AI-driven cloud threats are expanding the attack surface just as Palo Alto Networks deepens its role as a preferred security partner for government and large enterprises.
    • We'll now examine how Palo Alto Networks' new federal OneGov agreement and AI-cloud threat findings may influence its investment narrative.

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    Palo Alto Networks Investment Narrative Recap

    Palo Alto Networks’ investment case rests on the idea that AI driven, multi cloud adoption keeps pushing enterprises toward integrated security platforms. The latest State of Cloud Security findings and the long term OneGov deal reinforce this demand backdrop, while the most immediate risk still looks tied to intense competition and elevated R&D needs rather than any single contract or report, so the impact of this news on near term catalysts appears supportive but not transformational.

    The new U.S. General Services Administration OneGov agreement is especially relevant here, as it locks in access for federal agencies to Palo Alto Networks’ AI security, cloud security, firewalls and Zero Trust offerings through January 2028. It strengthens the platformization narrative and recurring revenue visibility, but it does not remove the execution risk of integrating and scaling an ever broader product suite across identity, AI and cloud native security...

    Read the full narrative on Palo Alto Networks (it's free!)

    Palo Alto Networks' narrative projects $13.3 billion revenue and $2.0 billion earnings by 2028. This requires 13.1% yearly revenue growth and an earnings increase of about $0.9 billion from $1.1 billion today.

    Uncover how Palo Alto Networks' forecasts yield a $224.53 fair value, a 20% upside to its current price.

    Exploring Other Perspectives

    PANW 1-Year Stock Price Chart
    PANW 1-Year Stock Price Chart

    The 18 fair value estimates from the Simply Wall St Community cluster between US$186.50 and US$227.95, underscoring how differently individual investors price Palo Alto Networks. Set against growing concern about rising R&D intensity and competitive pressure, these varied viewpoints invite you to weigh how much future AI security demand can support the company’s margins and growth.

    Explore 18 other fair value estimates on Palo Alto Networks - why the stock might be worth just $186.50!

    Build Your Own Palo Alto Networks Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.