Palo Alto Networks' (PANW) fiscal Q2 showed progress in advancing its platform-based cybersecurity strategy, helping the company establish a stronger market position, Wedbush said in a note to clients on Friday.

The company's fiscal Q2 revenue of $2.26 billion beat its guidance and the Street's estimate as it "executed on multiple fronts to drive platformization momentum with broad-based strength across all geographies and platforms," Wedbush said.

Palo Alto also reaffirmed its fiscal 2025 next-generation security annual recurring revenue of guidance of $5.52 billion to $5.57 billion and remaining performance obligation of $15.2 billion to $15.3 billion as the company works to strengthen data security across its platform while establishing the foundation for its platformization strategy moving into H2 of fiscal 2025 and fiscal 2026, according to the note.

"While not an inflection point in its platformization strategy, the seeds of growth are falling into place as [Palo Alto] is in the driver's seat to gain market and mind share in the cyber security landscape," Wedbush said.

Wedbush kept Palo Alto's outperform rating and $225 price target.

Price: 190.55, Change: -11.34, Percent Change: -5.61