---
title: "Palo Alto Networks (PANW) Is Priced Beyond Perfection"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/298216270.md"
description: "Palo Alto Networks (PANW) stock is deemed overpriced despite strong fiscal Q4 performance, with revenue up 34% and Next-Generation Security ARR surging 63%. Trading near 79x expected FY2027 EPS, the analyst maintains a bearish forecast, arguing that even with excellent earnings growth, the current valuation of approximately $333 per share exceeds perfection."
datetime: "2026-09-07T12:58:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/298216270.md)
  - [en](https://longbridge.com/en/news/298216270.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/298216270.md)
generator: "portal-rs"
---

# Palo Alto Networks (PANW) Is Priced Beyond Perfection

Palo Alto Networks (PANW) is priced beyond perfection. Even after a sharp drop following September 1 earnings, PANW stock remains up roughly 82% this year. The business certainly looks worthy of the excitement. Fiscal fourth-quarter revenue jumped 34% to $3.41 billion, while Next-Generation Security (NGS) annual recurring revenue (ARR) surged 63% to $9.1 billion.

CEO Nikesh Arora highlighted "nearly $1 billion of Net New NGS ARR" in the quarter. Yet at about $333, the stock trades near 79x Fiscal 2027 expected earnings per share (EPS). Even assuming earnings growth remains excellent in the coming years, shares appear way overpriced. So while I like the company, I struggle with the price, and thus my PANW stock forecast is bearish.

For context, Palo Alto Networks is a global cybersecurity leader headquartered in California. The company's core product is its platform that includes advanced firewalls and cloud-based offerings for government, large enterprises, and service providers.

### Related Stocks

- [PANW.US](https://longbridge.com/en/quote/PANW.US.md)
- [PALU.US](https://longbridge.com/en/quote/PALU.US.md)
- [PALD.US](https://longbridge.com/en/quote/PALD.US.md)
- [PANG.US](https://longbridge.com/en/quote/PANG.US.md)

## Related News & Research

- [Palo Alto Networks (PANW) Stock Looks Fully Priced After A Huge Run](https://longbridge.com/en/news/298767946.md)
- [Palo Alto Networks director Aparna Bawa disposes of USD 562,210.50 in common shares](https://longbridge.com/en/news/299231735.md)
- [Stableford Capital II LLC Has $716,000 Stake in Palo Alto Networks, Inc. $PANW](https://longbridge.com/en/news/298431631.md)
- [Wedbush Says Buy CRWD, PANW, and DDOG Stocks. Here's What's Driving the Optimism](https://longbridge.com/en/news/298749088.md)
- [Ahead of Palo Alto Networks Earnings, Here's What Barchart Data Says Comes Next for PANW Stock](https://longbridge.com/en/news/297681085.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**