Palo Alto Networks Delivers Strong FCF Margins - Is PANW Worth $350?

Palo Alto Networks (PANW) delivered strong FY 26 Q3 free cash flow (FCF) growth (+57%), and its adjusted FCF margin rose to 37.5% of sales. Management is targeting a 40% adj. FCF margin in FY 28. Using a 37.5% margin against analysts' FY 27 forecasts could push PANW stock 29% higher to $350 p/sh. This article will show how this works.

PANW closed Friday down 2.6% to $272.05, and it's off a pre-earnings peak of $300.48 on June 1, before the June 2 earnings release for the quarter ending April 26.