Palo Alto Networks IncSurging demand for AI-powered cybersecurity tools, with revenue up 31% and Prisma AIRS customers increasing tenfold.

Palo Alto Networks shares have jumped 62% so far in 2026, fueled by surging demand for its AI-powered cybersecurity tools. The company reported fiscal third-quarter revenue of $3 billion, up 31% year over year, while remaining performance obligations rose 36% to $18.4 billion, signaling a growing pipeline. Its Prisma AIRS platform, which secures AI assets, saw a tenfold increase in customers to more than 300, and the company aims to reach $20 billion in annual recurring revenue from next-generation security solutions by fiscal 2030. Analysts have a median 12-month price target of $330 on the stock, implying further upside, with 79% rating it a buy.
Palo Alto Networks IncSurging demand for AI-powered cybersecurity tools, with revenue up 31% and Prisma AIRS customers increasing tenfold.