Palo Alto Networks Rises 0.53% on 75th-Ranked $1.05B Volume as Software-Driven Growth and Cloud Expansion Boost Margins to 30%+

Palo Alto Networks (NASDAQ:PANW) closed September 3, 2025, with a trading volume of $1.05 billion, a 22.03% decline from the previous day, ranking 75th in market activity. The stock rose 0.53%, reflecting strong performance amid broader market volatility.

The cybersecurity firm reported a 16% year-over-year revenue increase to $2.54 billion in Q4 2025, driven by a strategic shift to software-based solutions. Over half of its product revenue now stems from software firewalls and SASE, with software accounting for more than 40% of total product revenue in the trailing twelve months. A $60 million deal with a major U.S. cloud provider highlighted its expanding cloud-native footprint, positioning the company as a leader in hybrid and multi-cloud environments.

Operating margins surpassed 30% for the first time, with free cash flow reaching $3.5 billion in fiscal 2025. Management projects sustained margin expansion, targeting a 38%-39% free cash flow margin in fiscal 2026 and 40% or higher by 2028 following the CyberArk acquisition. The proposed deal aims to strengthen identity security, integrating CyberArk’s privileged access management capabilities to address AI-driven threats and expand cross-selling opportunities.

Guidance for fiscal 2026 includes revenue of $10.475-$10.525 billion, a 14% year-over-year increase, and next-generation security ARR of $7 billion-$7.1 billion. Product revenue growth is expected to remain in the low teens, supported by platform consolidation and AI-driven innovation. The company’s disciplined cost structure and recurring revenue model underpin long-term value creation amid evolving cybersecurity demands.