Palo Alto Networks (PANW) FY2026 earnings

Reported results

• Total revenue for fiscal year 2026 was $11.48 billion; fiscal Q4 2026 total revenue grew 34% year-over-year to $3.41 billion (GAAP)
• Next-Generation Security ARR for fiscal Q4 2026 grew 63% year-over-year to $9.10 billion
• GAAP operating income for fiscal year 2026 was $695 million; GAAP net income was $307 million, or $0.40 per diluted share
• Non-GAAP operating income for fiscal year 2026 was $3.356 billion; non-GAAP net income was $2.931 billion, or $3.84 per diluted share
• Adjusted free cash flow for fiscal year 2026 was $4.414 billion with adjusted free cash flow margin of 38.4%
• Remaining performance obligations grew 34% year-over-year to $21.2 billion as of fiscal Q4 2026

Guidance

• FY Q1 2027: Next-Generation Security ARR of $9.54 billion to $9.56 billion (63% year-over-year growth); Total revenue $3.300 billion to $3.310 billion (33% to 34% growth); Non-GAAP diluted net income per share $0.96 to $0.98
• FY 2027: Next-Generation Security ARR of $11.075 billion to $11.175 billion (22% to 23% growth); Total revenue $14.10 billion to $14.20 billion (23% to 24% growth); Non-GAAP operating margin 29.5%; Non-GAAP diluted net income per share $4.16 to $4.19; Adjusted free cash flow margin 38.0%

Notes

Company acquired Console during the period. Fiscal year 2026 adjusted free cash flow margin was 38.4%, approaching the stated FY28 target of 40% adjusted free cash flow margin. Company provided long-term target of $20 billion NGS ARR for FY30.

Price and volatility reaction

The stock moved -9.3% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -23.3 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-01 (8-K, Item 2.02). Read the original filing on sec.gov.