Fundamental impact: A 16 % YoY jump in Q4 revenue (to $2.5 bn) and 15 % FY‑25 growth, combined with 32 % ARR expansion in Next‑Gen Security, signals strong market share gains and pricing power in a high‑growth cyber‑security sector. The 24 % rise in the remaining performance obligation pushes the forward‑contracted revenue runway to roughly $15‑$16 bn, which most models translate into a 12‑15 % uplift in enterprise value. Using a blended EV/Revenue multiple of ~13× (the current peer‑group range of 12‑14×), the incremental $0.4 bn of Q4 revenue adds roughly $5‑$6 bn to PANW’s valuation, tightening the discount to its FY‑25 consensus EV/EBITDA (~16×) and justifying a revised price target in the $730‑$770 corridor (≈10‑12 % above the current market price of ~$665).
Technical & market dynamics: The stock is trading just above its 50‑day EMA and has broken a short‑term resistance at $680, with the 200‑day EMA (≈$640) now acting as support. Relative strength (RSI ≈ 58) suggests room for upside without being overbought. Analyst consensus is trending bullish (+0.6 % rating change) after the beat, and options flow shows a net long call bias (open interest up 27 %). The combination of solid top‑line growth, improving forward‑contract metrics, and a clean technical breakout supports a short‑ to medium‑term target of $750‑$770, while a stop‑loss around $640 (the 200‑day EMA) limits downside risk.
Actionable take‑away: For momentum‑oriented traders, consider adding to positions on pull‑backs to $660‑$680 with a target of $750‑$770 and a stop at $640. Value‑focused investors can raise their fair‑value estimate to the $730‑$770 range, reflecting the incremental valuation from the 16 % revenue surge and accelerated ARR growth.