12:00 PM EST, 11/20/2025 (MT Newswires) -- Palo Alto Networks ( PANW ) reported "solid" fiscal Q1 results and reaffirmed its full-year outlook, driven by steady demand across its security software portfolio and early traction in artificial intelligence-based products, RBC Capital Markets said in a note Thursday.

The cybersecurity company is moving deeper into software and AI-driven security, with a $3.35 billion deal to acquire observability platform Chronosphere, a move that could pressure standalone monitoring vendors, RBC said.

While there is risk around the acquisition, analysts said they remained positive on the vision as "Palo Alto is a top-tier software vendor seeing AI tailwinds as it grows ahead of industry peers."

Analysts also said they were "intrigued with the emerging quantum opportunity," with the company projecting commercialized quantum capabilities by 2029.

RBC maintained an outperform rating on Palo Alto Networks ( PANW ), with a price target of $250.

Shares of the company were down 5% in recent Thursday trading.

Price: 189.96, Change: -9.94, Percent Change: -4.97