Core Insights - Palo Alto Networks (PANW) stock is currently undervalued, trading at $185.13, which is 17% below its price target of $212 per share, despite strong financial performance in fiscal Q1 2026 [1][3] Financial Performance - For fiscal Q1 2026, PANW reported a revenue increase of 15.67% to $2.474 billion and an adjusted free cash flow (FCF) rise of 16.85% to $1.713 billion [3] - The trailing 12-month (TTM) adjusted FCF margin reached a new high of 39.3%, surpassing the previous quarter's margin of 38% [4][5] - The company anticipates maintaining an adjusted FCF margin between 38% and 39% for the fiscal year, indicating strong recurring revenue capabilities [6] Revenue and FCF Projections - Analysts project PANW's revenue for the fiscal year ending July 31 to be $10.53 billion, with an expected increase to $11.93 billion for the following fiscal year [7] - Based on these projections, the next 12 months (NTM) revenue is estimated at $10.88 billion, with potential adjusted FCF reaching $4.3 billion if the margin is assumed at 39.5% [7]