New York, March 3, 2026, 15:01 EST — Regular session
Palo Alto Networks climbed roughly 4% Tuesday, buoyed by fresh coverage from Wells Fargo. Shares added $6.06 to reach $156.21 during the afternoon session, having earlier bounced between $147.25 and $156.82.
The move caught attention during a session when U.S. stocks broadly dropped, as a deepening Middle East conflict sent energy prices higher and put inflation worries back in focus. Traders, looking for any resilience, clustered around areas showing relative strength. 1
Wells Fargo slapped a $200 price target on Palo Alto Networks, calling the recent drop a “favorable entry point” as cybersecurity plays like platform consolidation, cloud adoption, and AI pick up steam. The bank pointed out some near-term M&A risk, but suggested it could pay off if Palo Alto claws its way to a bigger slice of what it sees as a $300 billion-plus market. Shares have tumbled 21.6% in the past six months, Wells Fargo said. 2
CrowdStrike finished up around 1.9%, Zscaler tacked on 4.5%, and Fortinet posted a 2.9% gain. The Amplify Cybersecurity ETF inched up 0.8%, even as the Nasdaq 100 tracker QQQ slipped roughly 0.9%.
Palo Alto Networks is trying to shake the single-product image, presenting itself as a security platform covering network, cloud, security operations, AI, and identity. Investors are gambling that this kind of reach translates into higher customer “stickiness”—plus confidence that the company can handle the complexity that comes with it. 3
At Mobile World Congress in Barcelona, the company rolled out a slew of new product and partnership updates, locking in deals with Nokia, U Mobile, Aeris, and Celerway targeting security for “AI factories”—those sprawling data centers handling AI training and operations—and the 5G edge that connects them. “We are establishing the secure foundation for the AI economy,” said Anand Oswal, executive vice president at Palo Alto Networks. Greg Dorai of Nokia cautioned that as AI data centers scale, builders can’t afford to “leave the door open at the infrastructure layer.” 4
Mobile World Congress stretches from March 2 to 5, with networking and security updates rolling out all week. 5
Still, the cost question continues to dog PANW. Back in February, Palo Alto trimmed its profit outlook for fiscal 2026 as acquisition costs piled up, though it bumped up revenue guidance — not exactly a comforting combo for traders wary that those deal expenses aren’t going away. 6
The spotlight shifts from Palo Alto’s calendar to the sector’s overall mood. CrowdStrike steps up after Tuesday’s close, and traders want clues from its results. Options are implying a swing of about 7% in the stock tied to the report. 7
