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← Palo Alto Networks

Palo Alto Networks — 2026Q3 earnings

reported 2026-09-01

EPS $1.02 vs $0.98 est — beat

next session -9.3% (close 2026-09-01 → 2026-09-02)

Source

Press release ↗

Summary

The quarter was a beat on the metrics management steers by: revenue $3.41 billion (+34%), NGS ARR $9.10 billion (+63%), RPO $21.2 billion (+34%), and adjusted free cash flow of $1.3 billion. The gap between the two earnings lines is the story underneath — non-GAAP EPS rose to $1.02 while GAAP flipped to a $282 million loss from a $254 million profit, so the growth is being bought with charges below the non-GAAP line. Guidance is the other tension: FY27 revenue of $14.10-$14.20 billion is 23-24% growth against the 34% just delivered, and NGS ARR growth guided to 22-23% after a 63% year.

Review

From the report

Palo Alto Networks closed fiscal 2026 with 34% revenue growth to $3.41 billion and Next-Generation Security ARR up 63% to $9.10 billion, but GAAP swung to a $282 million loss and FY27 guidance implies growth cooling to 23-24%.

  • Q4 FY26 total revenue grew 34% year over year to $3.41 billion. show quote
    “Total revenue for the fiscal fourth quarter 2026 grew 34% year over year to $3.41 billion.”
    source ↗
  • Next-Generation Security ARR — the platformization metric management steers by — reached $9.10 billion, up 63% year over year. show quote
    “Next-Generation Security ARR for the fiscal fourth quarter 2026 grew 63% year over year to $9.10 billion.”
    source ↗
  • GAAP swung to a loss of $282 million, or ($0.35) per diluted share, against a $254 million profit a year earlier, even as the quarter grew. show quote
    “GAAP net loss for the fiscal fourth quarter 2026 was $282 million, or ($0.35) per diluted share, compared with GAAP net income of $254 million, or $0.36 per diluted share, for the fiscal fourth quarter 2025.”
    source ↗
  • On a non-GAAP basis earnings still rose, to $853 million or $1.02 per diluted share from $0.95 a year earlier. show quote
    “Non-GAAP net income for the fiscal fourth quarter 2026 was $853 million, or $1.02 per diluted share, compared with non-GAAP net income of $673 million, or $0.95 per diluted share, for the fiscal fourth quarter 2025.”
    source ↗
  • FY27 revenue guidance of $14.10-$14.20 billion implies growth decelerating to 23-24% from the 34% just posted. show quote
    “Total revenue in the range of $14.10 billion to $14.20 billion, representing year-over-year growth of 23% to 24%.”
    source ↗
  • The company disclosed an acquisition of Console, an agentic-AI platform folded into Cortex. show quote
    “Palo Alto Networks has acquired Console, an AI-native platform that enables agentic workflows across enterprise operations.”
    source ↗

as of 2026-09-01