Palo Alto Networks' Platformization, AI Tailwinds Support Growth Outlook, RBC Says

11:16 AM EDT, 09/02/2026 (MT Newswires) -- Palo Alto Networks' (PANW) position as a "cybersecurity consolidator" combined with accelerating platformization and emerging artificial intelligence tailwinds support the company's growth outlook, RBC Capital Markets said in a Wednesday note. RBC said Palo Alto Networks added about $970 million of net new annual recurring revenue from its next-generation security business in Q4, nearly doubling year over year, while annual recurring revenue from the business reached $9.1 billion, up 63% year over year. The firm said platformization is compounding as deeper customer commitments drive bigger deals, better retention and accelerating annual recurring revenue growth. RBC also said AI is emerging as a multi-vector tailwind, with Prisma AIRS reaching about $120 million in annual recurring revenue and over 800 customers within four quarters of general availability. RBC analysts also noted that CyberArk integration is running three to six months ahead of schedule on synergies, while Chronosphere's annual recurring revenue has more than doubled since closing. RBC maintained its outperform rating on Palo Alto Networks and raised its price target to $475 from $434. Shares of Palo Alto Networks were 8% lower in Wednesday trading. Price: 333.90, Change: -28.19, Percent Change: -7.79