Thoughts Into F3Q: Strengthening Survey Data Supports a More Constructive View,

Research evidence excerpt

Thoughts Into F3Q: Strengthening Survey Data Supports a More Constructive View,

Technology | Software

May 25, 2026

Palo Alto Networks, Inc. Peter Levine Kirk Materne, CFA 212 497 0833 212 497 0873

PANW | $260.58 peter.levine@evercoreisi.com kirk.materne@evercoreisi.com

Outperform | Target Price/Base Case: $320.00 (from Charlie Zhou Peter Burkly

$250.00) 646-551-8513 212 497 0831

Company Update charlie.zhou@evercoreisi.com peter.burkly@evercoreisi.com

Thoughts Into F3Q: Strengthening Survey

Company Statistics

Data Supports a More Constructive View, Market Capitalization (B) $178

Shares Outstanding (M) 677 with Early CYBR Momentum

Float (M) 809 Survey results this quarter reflected an incrementally more constructive

Average 10-Day Volume (M) 17,259

Enterprise Value (B) $174 outlook vs. prior quarters, reinforcing takeaways from our recent partner

52-Week Range $139.57 - $223.61 channel checks with GuidePoint (here) & World Wide (here). Partner

Fiscal Year End Jul commentary points towards a sequential improvement in pipelines and

increasingly constructive sentiment around revenue acceleration over

the NTMs. We would also note that partner feedback on the Federal

Earnings Summary business (~5% of total rev) improved this quarter following more muted

commentary last quarter. Our checks continue to indicate strong

2024 2025 2026E

platform consolidation momentum across the board. We picked up that

Revenue (M) Q1 $1,878 $2,139 $2,474A recent frontier model developments have elevated customer Q2 $1,975 $2,257 $2,594A

Q3 $1,985 $2,289 $2,944 awareness around emerging security risks, partners do not believe

Q4 $2,190 $2,536 $3,283 these trends pose meaningful competitive displacement risk for

FY $8,028 $9,222 $11,295 incumbent cybersecurity vendors based on current customer