With rising geopolitical tensions and the war in Iran, cybersecurity has become more important in recent months for governments, companies and organizations. Perhaps that’s why there has been a surge of interest among investors in cybersecurity stocks.
Palo Alto Networks (NASDAQ: PANW) is one of the leading enterprise cybersecurity companies and focuses on providing cybersecurity to large businesses and governments across their businesses.
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Since February 24, just before the conflict in Iran began, it’s no coincidence that Palo Alto Networks stock has risen about 17% in a period when the broader market has faltered. This is because this war is increasing the potential for cyber attacks, prompting companies and organizations to protect themselves.
Is this a good time for investors to buy Palo Alto Networks stock?
The war in Iran has led to an increase in cyberattacks, according to Palo Alto Networks Unit 42, its elite cybersecurity team.
And earlier this month, President Donald Trump signed an executive order that focuses on improving cybersecurity and combating cybercrime. The order requires greater scrutiny of the cybersecurity efforts of organizations and companies and could ultimately create the need for better systems and more spending on cybersecurity.
These factors should help fuel Palo Alto Networks’ already strong growth. In its last fiscal quarter (ending January 31, 2026), its revenue increased 15% year over year and annual recurring revenue (ARR) increased 33%. Additionally, adjusted earnings per share increased 27%.
For the current quarter, the company projects that ARR will grow 56% year over year and revenue will increase 28% to 29%. In addition, it requires that the remaining performance obligations, or contracts in process, increase by 23%. Projected growth rates for the full fiscal year are equally strong.
This perspective was published on February 17, so it was before the conflict in Iran and Trump’s executive order. It will be very interesting to see if those projections increase when the company reports its fiscal third-quarter earnings on May 19.
Palo Alto Networks is the largest and longest-running cybersecurity company in the world. It is widely considered the most trusted name in cyber defense.