Freedom Raises Palo Alto Networks Target Price by 57% amid AI Infrastructure Boom

Palo Alto Networks (PANW) reported performance for the Q3 2026, surpassing market expectations on both revenue and profit. Against a backdrop of sustained demand for cybersecurity solutions and accelerated artificial intelligence adoption, Freedom analysts have raised the company’s share target price from $210 to $330, maintaining a Buy recommendation.

Palo Alto Networks is one of the world’s leading cybersecurity providers. The company delivers solutions to corporate clients for securing network infrastructure, cloud services, and AI systems, while actively advancing its proprietary AI-powered security platform.

According to analysts, the company’s long-term growth will be driven by the rapid expansion of the AI infrastructure protection market. As the number of corporate AI initiatives increases, enterprises spending on cybersecurity is expected to rise, creating favorable conditions for Palo Alto Networks to expand its business.

A key growth driver in the quarter was strong demand for products tied to AI infrastructure development. The company recorded record sales of hardware firewalls used to secure next-generation data centers and corporate networks.

Further support came from the successful integration of recent acquisitions, including CyberArk and Chronosphere. Freedom analysts believe these deals enable Palo Alto Networks to accelerate product portfolio expansion and strengthen its position in the fast-growing cybersecurity market.

The company’s platform-based solutions continue to demonstrate strong momentum. Customer adoption of XSIAM and Prisma AIRS products is growing rapidly, while demand for integrated security platforms is rising as enterprises incorporate artificial intelligence into their business operations.

Following the strong quarterly performance, Palo Alto Networks’ management has raised its full-year forecast for FY 2026. Freedom has also revised its own revenue and profit valuations for the company upward.

Not an individual investment recommendation.