Will Google Cloud’s AI Security Alliance With Palo Alto Networks (PANW) Redefine Its Investment Narrative?

• In December 2025, Google Cloud and Palo Alto Networks expanded their partnership to integrate Prisma AIRS across Google’s AI services, including Vertex AI and Agent Engine, and entered a new multibillion-dollar agreement to migrate Palo Alto’s internal security platforms onto Google Cloud’s infrastructure.
• This deeper alignment aims to build security into every layer of hybrid multicloud AI development, positioning Palo Alto Networks as a core provider of end-to-end protection for enterprises scaling AI workloads in the cloud.
• Now we’ll consider how this expanded Google Cloud integration, especially embedding Prisma AIRS into core AI tools, reshapes Palo Alto Networks’ investment narrative.

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Palo Alto Networks Investment Narrative Recap

To own Palo Alto Networks, you need to believe that AI and multicloud adoption will keep expanding the cybersecurity attack surface and that a unified, AI-centric platform can win a larger share of security budgets. The expanded Google Cloud partnership reinforces this thesis by embedding Prisma AIRS into core AI tools, potentially supporting near term AI security demand, while competitive pressure from cloud providers’ own native security features remains a key risk that could limit pricing power and growth.

Among recent developments, the multibillion dollar agreement to migrate Palo Alto Networks’ own security platforms onto Google Cloud stands out, because it deepens technical alignment and may strengthen its position as a preferred security partner for Google Cloud customers. That sits alongside ongoing investments in AI firewalls, SASE and Cortex, which underpin the company’s push toward higher margin, recurring Next Generation Security revenue streams that many investors see as the central catalyst.

Yet beneath the optimism around AI security integration, investors should be aware that intensifying competition from both cloud providers and open source tools could...

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 a roughly $0.9 billion earnings increase 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

Twenty two Simply Wall St Community fair value estimates for Palo Alto Networks span roughly US$186 to US$245, underscoring how differently individual investors view its prospects. You can set those varied views against the company’s push into end to end AI security with Google Cloud, which could influence how you think about its longer term growth potential and risk profile.

Explore 22 other fair value estimates on Palo Alto Networks - why the stock might be worth as much as 31% more than the current price!

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.

• A great starting point for your Palo Alto Networks research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Palo Alto Networks research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Palo Alto Networks' overall financial health at a glance.

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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.

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