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Palo Alto Networks (DE:5AP)
XETRA:5AP
Earnings Data
Report Date
May 26, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.69Last Year’s EPS
0.68Same Quarter Last Year
Strong Buy
Based on 28 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated strong underlying demand, robust ARR and revenue growth, product momentum across SASE, XSIAM and AI security, expanding profitability and exceptional free cash flow generation. Management concurrently announced two transformative acquisitions (Chronosphere and CyberArk) that materially bolster observability and identity capabilities and contribute to near-term ARR and pipeline. Key near-term concerns include acquisition-driven growth and dilution, margin mix pressures in services and sequential product mix, supply-chain cost impacts, and integration/financial complexity from large deals. On balance, the operational results, traction in strategic AI and platform initiatives, and sustained profitability and cash flow outweigh the near-term integration and mix headwinds.Company Guidance
Strong NGS ARR Growth
Next-generation security (NGS) ARR grew 33% to $6.33B (includes ~$200M from Chronosphere). Organic NGS ARR rose 28% year-over-year, with net new ARR up 11% YoY.
Revenue and Product Growth
Total revenue was $2.59B, up 15% year-over-year. Product revenue increased 22%; 45% of product revenue over the trailing 12 months came from software form factors (up from 38% a year ago).
Outstanding SASE and Network Security Momentum
SASE ARR surpassed $1.5B and grew approximately 40% YoY, positioning Palo Alto as a rapidly scaling SASE provider. Software firewall ARR grew ~25%; hardware revenue increased nearly 10% driven by Gen 5 adoption.
Cortex / XSIAM Traction
XSIAM exceeded $0.5B ARR, added ~150 customers in the quarter to total over 600, with an average ARR per XSIAM customer near $1M. Over 60% of deployed XSIAM customers now achieve mean time to remediation under 10 minutes.
Rapid Adoption of AI Security Products
Prisma AIRS scaled quickly to over 100 customers by quarter-end (more than tripling from Q1 to Q2) and bookings doubled quarter-to-quarter; a 9-figure pipeline was reported for AIRS.
Platformization and Customer Retention
Delivered ~110 net new platformizations in Q2 (record outside Q4), bringing total platformizations to ~1,550, up 35% year-over-year. Platformized customers show 119% net retention with low single-digit churn.
Profitability and Cash Generation
Operating margin was 30.3% (third consecutive quarter >30%), expanding 190 bps YoY. Diluted non-GAAP EPS was $1.03 (above guidance). Q2 adjusted free cash flow was $502M; trailing 12-month adjusted non-GAAP free cash flow was $3.75B (37.9% margin).
Strategic Acquisitions and Observability Gain
Closed Chronosphere (Chronosphere ARR ~ $200M as of Q2, above expectations) and CyberArk (closed early Q3). Post-close Chronosphere signed a multiyear 9-figure expansion with a leading AI model provider, and Chronosphere reported >80% of new logos adopted multiple products (metrics, logs, traces).
Geographic and Revenue Diversity
Broad-based geographic growth: Americas +14%, EMEA +17%, and JPAC +17%. Remaining performance obligation (RPO) was $16.0B, up 23%, and current RPO was $7.1B, up 18%.
DE:5AP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DE:5AP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 17, 2026 | €137.66 | €130.22 | -5.40% |
Nov 19, 2025 | €174.04 | €164.68 | -5.38% |
Aug 18, 2025 | €150.34 | €157.68 | +4.88% |
May 20, 2025 | €172.10 | €161.06 | -6.41% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Palo Alto Networks (DE:5AP) report earnings?
Palo Alto Networks (DE:5AP) is schdueled to report earning on May 26, 2026, After Close (Confirmed).
What is Palo Alto Networks (DE:5AP) earnings time?
Palo Alto Networks (DE:5AP) earnings time is at May 26, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Palo Alto Networks stock?
The P/E ratio of Palo Alto Networks is N/A.
What is DE:5AP EPS forecast?
DE:5AP EPS forecast for the fiscal quarter 2026 (Q3) is 0.69.
