Core Insights - Palo Alto Networks (PANW) is experiencing significant growth in its Secured Access Service Edge (SASE) business, with SASE ARR increasing by 34% year over year, surpassing $1.3 billion and serving approximately 6,800 customers, including one-third of the Fortune 500 [1][9] SASE Business Growth - The SASE business had a strong quarter, with notable enterprise wins, including a $33 million deal with a large U.S. cabinet agency covering 60,000 seats, which replaced an existing provider [3][9] - The growth in SASE is supported by the increasing demand for a unified platform that offers visibility across firewall setups and remote endpoints [3] Secure Browsers Momentum - PANW reported strong momentum in secure browsers, selling over 7.5 million browsers in the first quarter, with bookings nearly quadrupling year over year [2][9] - The rise of AI tools and "agentic browsers" in the workplace has created security gaps, which PANW's secure browser aims to address, providing an additional layer of protection for users [2] Competitive Landscape - Key competitors in the SASE space include Zscaler and Fortinet, both of which are expanding their offerings in browser-based security and SASE solutions [5][6] - Zscaler is seeing demand from customers transitioning from legacy VPNs to its zero-trust architecture, while Fortinet's Unified SASE ARR grew by 13% year over year [5][6] Financial Performance and Estimates - PANW's shares have decreased by 6.4% over the past six months, compared to a 10.5% decline in the Zacks Security industry [7] - The Zacks Consensus Estimate indicates revenue growth of approximately 14.1% for fiscal 2026 and 13.2% for fiscal 2027, with earnings growth estimates of 14.9% and 12.3% respectively [4][14]