With geopolitical tensions rising and war in Iran, cybersecurity has become more important in recent months for governments, companies, and organizations. That may be why there has been a surge of interest among investors in cybersecurity stocks.
Palo Alto Networks (NASDAQ: PANW) is one of the leading enterprise cybersecurity firms, focusing on providing cybersecurity for large companies and governments across their entire enterprises.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Since Feb. 24, just before the conflict in Iran started, it is no coincidence that Palo Alto Networks stock has surged some 17% over a period when the overall market has sputtered. That’s because this war is heightening the potential for cyberattacks, spurring companies and organizations to protect themselves.
Is this a good time for investors to buy Palo Alto Networks stock?
The war in Iran has led to an increase in cyberattacks, according to Palo Alto Networks’ Unit 42, its elite cybersecurity team.
And earlier this month, President Donald Trump signed an executive order that focuses on improving cybersecurity and combatting cybercrime. The order calls for more scrutiny of organizations’ and companies’ cybersecurity efforts and could ultimately create the need for better systems and more spending on cybersecurity.
These factors should help fuel Palo Alto Networks’ already robust growth. In its latest fiscal quarter (ended Jan. 31, 2026), it grew revenue 15% year over year with annual recurring revenue (ARR) rising 33%. Further, adjusted earnings per share rose 27%.
For the current quarter, the company projects ARR to grow 56% year over year and revenue to surge by 28% to 29%. In addition, it calls for remaining performance obligations, or contracts in the pipeline, to surge 23%. Projected growth rates for the full fiscal year are similarly strong.
This outlook was posted on Feb. 17, so it was before the conflict in Iran and the Trump executive order. It will be very interesting to see if those projections move higher when the company reports its fiscal third-quarter earnings on May 19.
Palo Alto Networks is the largest pure-play cybersecurity firm in the world and has been around the longest. It is widely considered the most trusted name in cyberdefense.
