Palo Alto(US:PANW) ZACKS·2025-09-09 16:26Core Insights - Palo Alto Networks (PANW) is experiencing significant growth in its Secure Access Service Edge (SASE) business, with annual recurring revenue (ARR) reaching approximately $1.3 billion in fiscal 2025, marking a 35% year-over-year increase [1][10] Group 1: Business Growth and Product Adoption - A substantial portion of the growth is attributed to the Prisma Access Browser, with over three million licenses sold in Q4 of fiscal 2025, totaling more than six million seats [2][10] - Noteworthy transactions include a $3 million deal with a U.S. pharmaceutical company for over 80,000 Prisma Browser seats, indicating strong demand among large enterprises [2] - Palo Alto Networks has over 6,300 SASE customers, including one-third of the Fortune 500, showcasing robust adoption in the enterprise sector [2] Group 2: Product Development and Features - The company has launched Prisma SASE 4.0, which enhances the Prisma Browser with new capabilities, including real-time in-browser protection against evasive threats and AI-powered data classification [3][4] - The update also introduces Private App Security to protect critical business applications, positioning secure browsers as a standard component of SASE deployments [4][5] Group 3: Competitive Landscape - Key competitors in the SASE market include Zscaler and Fortinet, both of which are expanding their browser-based security offerings [6] - Fortinet's SASE ARR grew 22% year-over-year in Q2 2025, highlighting its rapid growth driven by the adoption of its FortiSASE platform [7] Group 4: Financial Performance and Valuation - Palo Alto Networks' shares have increased by 8.5% year-to-date, slightly underperforming the Zacks Security industry's growth of 10.4% [8] - The forward price-to-sales ratio for Palo Alto Networks is 12.31X, marginally above the industry's average of 12.23X [12] - The Zacks Consensus Estimate for fiscal 2026 total revenues is projected at $10.42 billion, reflecting a year-over-year increase of 13% [5]