Palo Alto Networks (PANW) delivered "strong" fiscal Q4 results and fiscal year 2026 guidance that exceeded expectations, reinforcing investor confidence and dispelling concerns about core business weakness ahead of its proposed CyberArk (CYBR) acquisition, RBC Capital Markets said in a report Tuesday.

RBC analysts said that the results and guidance debunk investor concerns that the CyberArk acquisition is a move to compensate for a "weakening core business." The deal is expected to expand Palo Alto's capabilities in identity security, a sector the company views as ripe for consolidation, RBC said.

"We view Palo Alto as well positioned to benefit from an increasingly complex security and threat landscape and as an industry leader in security," the analysts said.

RBC maintained an outperform rating on Palo Alto Networks with a price target of $232.

Shares of the company were up more than 4% in recent Tuesday trading.

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