PANW · News · 20261021N

AI Security Demand

Palo Alto Networks Inc · 2026-10-21 · Importance 17 · Surprise 24 · In source text

Evercore channel checks identify Palo Alto Networks and CrowdStrike as leaders in demand for AI-driven security operations. Spending priorities include AI governance, identity security, data security, and cyber resilience. Demand is being driven by platform expansion and enterprise modernization planning for 2027, with activity expected to accelerate toward year-end. The checks also indicate strong platform-consolidation trends and constructive firewall activity, while commentary was more cautious for Zscaler and Check Point.

Key facts

• Palo Alto Networks reported quarterly EPS of $1.02 and revenue of $3.41 billion in the referenced quarter. source
• Evercore expects an acceleration in AI-driven security activity for Palo Alto Networks towards year-end and highlights spending priorities including AI governance, identity, data security, and cyber resilience. source
• Robeco Institutional Asset Management B.V. sold 547,694 shares of Palo Alto Networks in the third quarter, reducing its stake by 35% and retaining over 1 million shares. source
• Sawyer & Company Inc acquired 8,321 shares of Palo Alto Networks during the third quarter, valued at approximately $3.3 million, representing 1.1% of their portfolio. source
• Integrated Advisors Network LLC sold 3,510 shares of Palo Alto Networks in the third quarter, a 5% reduction, and retained 66,412 shares valued at approximately $26.4 million. source
• Evercore's channel checks indicate Palo Alto Networks is experiencing the highest demand for AI-driven security operations along with CrowdStrike. source
• Palo Alto Networks stock rose by 3.21% on October 21. source
• Institutional investors collectively own 79.82% of Palo Alto Networks. source

Impact estimates