Stifel Reiterates Buy on Palo Alto Networks Ahead of Q3 Results

Stifel reaffirmed its Buy rating and $225 price target on Palo Alto Networks (NASDAQ:PANW) ahead of the company’s Q3 2025 earnings report, scheduled for May 20. The firm expects results to come in broadly in line with expectations and for full-year guidance to be reaffirmed.

Following recent field checks with six cybersecurity value-added resellers (VARs) and system integrators (SIs), Stifel noted a generally positive tone on cybersecurity demand, though some variability remains due to macroeconomic uncertainty.

For Palo Alto's April quarter specifically, feedback was mixed: one partner saw stronger-than-expected results, three reported in-line performance, and two cited softness attributed to volatile macro conditions. Looking ahead to the July quarter, most partners are cautious, citing fiscal policy uncertainty.

However, recent positive earnings reports from sector peers—including Cisco, Fortinet, and Check Point—along with the 90-day pause in China tariffs and a typically strong seasonal pattern for Palo Alto in the July quarter, support Stifel’s expectations for stable performance.

The reaffirmed outlook suggests confidence in Palo Alto’s positioning despite uneven near-term trends, and Stifel continues to see long-term upside based on robust product demand and secular cybersecurity tailwinds.