Palo Alto Networks, Inc. reports strong fiscal fourth quarter results and provides guidance for fiscal year 2027

Palo Alto Networks, Inc. reported its fiscal fourth quarter and fiscal year 2026 results, showing a revenue of $3.41 billion, which is a 34% year-over-year increase. The company reported a non-GAAP EPS of $1.02, exceeding the expected $0.98. During this period, the company's next-generation security annual recurring revenue (NGS ARR) rose 63% year-over-year to $9.1 billion. Nikesh Arora, the chairman and chief executive officer of Palo Alto Networks, Inc., noted that the company added nearly $1 billion of Net New NGS ARR in a single quarter. The company also announced the acquisition of Console, an AI-native platform designed to expand the Cortex platform. For the fiscal year 2027, the administration announced revenue guidance of $14.1 billion to $14.2 billion and NGS ARR guidance of $11.075 billion to $11.175 billion. Despite the strong headline growth, the company's stock fell approximately 9% following the report, as the NGS ARR figure was slightly lower than some investor expectations.

Sources

• CNBC
  Palo Alto Networks beats quarterly estimates on AI demand, continues acquisition spree
• Benzinga
  Palo Alto Stock Suffers Worst 2-Day Drop In 30 Months - Palo Alto Networks (NASDAQ:PANW)

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Paywall and unreadable sources

• Barron's
  Why Palo Alto Stock Is Getting Crushed After a Huge Earnings Beat
• WSJ
  Palo Alto Projects Double-Digit Growth as AI Drives Cybersecurity Spending
• The Information
  Palo Alto Networks Revenue Growth Accelerates as Companies Buy More Security for AI