Santa Clara, California-based Palo Alto Networks, Inc. (PANW) provides cybersecurity solutions. With a market cap of $129.9 billion, the company offers firewalls that identify and control applications, scan content to stop threats, prevent data leakage, integrated application, user, and content visibility.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and PANW perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the software - infrastructure industry. PANW's dedication to innovation is showcased through its substantial investment in research and development. The release of PAN-OS 11.1 Cosmos and Cortex XSIAM 2.0 highlights the company's commitment to staying ahead of cyber threats with cutting-edge AI-driven solutions. This strategic focus on innovation not only enhances PANW's product portfolio but also solidifies its position as a frontrunner in the cybersecurity sector, equipped to tackle evolving security risks.

Despite its notable strength, PANW slipped 5.4% from its 52-week high of $208.39, achieved on Feb. 19. Over the past three months, PANW stock has gained 7.3%, outperforming the S&P 500 Index’s ($SPX) 2.1% rise during the same time frame.

In the longer term, shares of PANW rose 8.3% on a YTD basis and climbed 33.9% over the past 52 weeks, outperforming SPX’s YTD gains of 1.5% and 13% returns over the last year.

To confirm the bullish trend, PANW has been trading above its 50-day and 200-day moving averages since late April, with slight fluctuations. 

PANW has seen impressive growth thanks to strategic acquisitions and a focus on AI-driven security solutions. The company's recent financial results show accelerated revenue growth, particularly in its AI products like Cortex XSIAM. This platform has helped companies reduce incident response times significantly, leading to a surge in annual recurring revenue. Additionally, PANW has launched Prisma AIRS to secure data used in third-party AI models, tapping into a $15 billion market. The company's platformization strategy, aiming to be a one-stop vendor for cybersecurity needs, has also paid off, with a growing number of customers utilizing multiple platforms. Overall, PANW's innovative approach to security solutions is driving its success in the market.

On May 20, PANW reported its Q3 results, and its shares closed down more than 6% in the following trading session. Its adjusted EPS of $0.80 exceeded Wall Street expectations of $0.77. The company’s revenue was $2.29 billion, topping Wall Street forecasts of $2.28 billion. PANW expects full-year adjusted EPS in the range of $3.26 to $3.28, and expects revenue to be between $9.17 billion and $9.19 billion.

In the competitive arena of software - infrastructure, Fortinet, Inc. (FTNT) has taken the lead over PANW, showing resilience with an 8.9% uptick on a YTD basis and 75% gain over the past 52 weeks.

Wall Street analysts are moderately bullish on PANW’s prospects. The stock has a consensus “Moderate Buy” rating from the 48 analysts covering it, and the mean price target of $212.97 suggests a potential upside of 8% from current price levels.