Palo Alto Networks (PANW)
NASDAQ:PANW
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Earnings Data
Report Date
Aug 24, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.97Last Year’s EPS
0.95Same Quarter Last Year
Strong Buy
Based on 37 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The earnings call was strongly positive overall. The company reported a record quarter with broad-based revenue, ARR and RPO growth, exceptional free cash flow expansion, rapid adoption of new AI security products (Prisma AIRS, XSIAM, Chronosphere), robust platformization metrics, and early acquisition integration success (CyberArk, Chronosphere). Near-term challenges include acquisition-related GAAP charges and elevated stock-based compensation, supply-chain and component cost pressure, and ongoing integration/migration tasks (e.g., Prisma Cloud to Cortex Cloud). These lowlights are largely transitional or industry-wide and management provided mitigation plans and timelines. Given the scale and magnitude of the growth metrics and cash flow improvements versus the manageable and largely one-time or solvable challenges, the overall tone is constructive and confident.Company Guidance
Record Quarter and Guidance Outperformance
Company delivered a record Q3 and surpassed every guided metric; raised full-year fiscal 2026 guidance across all metrics driven by acceleration in organic bookings and strong integration of recent acquisitions.
Next-Generation Security (NGS) ARR Growth
NGS ARR reached $8.13 billion in Q3, a 60% year-over-year increase (includes $1.63B from CyberArk and Chronosphere); excluding those acquisitions, NGS ARR was $6.5 billion, up 28% year-over-year.
Remaining Performance Obligation (RPO) Expansion
RPO totaled $18.4 billion, up 36% year-over-year (including acquisitions); excluding CyberArk and Chronosphere, RPO grew 22% year-over-year. Current RPO was $8.3 billion, up 34% YoY (7.2B excl. acquisitions, +17% YoY).
Strong Revenue and Recurring Mix
Total revenue was $3.0 billion in Q3, up 31% year-over-year. Product revenue was $594 million and services revenue $2.4 billion, both +31% YoY. Recurring and software-driven product revenue increased materially (46% of trailing 12‑month product revenue was recurring software).
Exceptional Cash Flow and Margins
Adjusted free cash flow for Q3 was $910 million, a 57% increase YoY. Trailing 12-month adjusted non-GAAP free cash flow was $4.08 billion representing a 38.5% margin (improvement of 430 basis points YoY). Non-GAAP operating margin in Q3 was 21.3% (flat YoY).
Platformization & Customer Metrics
Secured 110 net new platformizations in Q3 (2,280 total platformized customers); platformized cohort shows 120% net retention and single-digit churn. Company expects to surpass 4,000 platformizations by fiscal 2030.
Prisma AIRS and Product Momentum
Prisma AIRS established as the fastest-scaling product in company history: over 300 customers in Q3 (tripled since Q2) with clear visibility toward $100 million ARR within the next couple quarters; software firewall ARR rose 25% YoY.
Network Security and Hardware Strength
Network security (largest segment, ~70% of total revenue) had the strongest Q3 in years: next-generation firewall bookings rose nearly 40% YoY and hardware delivered its best quarter in a decade. Customers average more than 4 subscriptions per device.
XSIAM and Observability Growth
XSIAM ARR exceeded $600 million, +100% YoY with 740 customers and most customers responding to threats in under 10 minutes. Chronosphere (observability) ARR surpassed $300 million, nearly doubling since acquisition announcement.
SASE and Secure Browser Traction
SASE ARR reached $1.6 billion, growing 40% YoY. Secure browser scaled to 11 million licenses (4x increase). Company reported nearly 50 SASE displacement wins totaling $200 million YTD.
Acquisitions Exceeding Early Expectations
CyberArk and Chronosphere integrations are exceeding expectations in the first quarter post-close; Chronosphere ARR >$300M and contributed meaningfully to organic momentum. Integration progress accelerated synergies and profitability convergence timelines for CyberArk (3–6 months ahead).
Capital Returns
Returned capital via opportunistic share repurchase: $1.0 billion used to buy back 6.8 million shares during Q3; $1.0 billion remaining capacity under the repurchase program.
PANW 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
PANW Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jun 02, 2026 | $297.18 | $280.43 | -5.64% |
Feb 17, 2026 | $163.50 | $152.35 | -6.82% |
Nov 19, 2025 | $199.90 | $185.07 | -7.42% |
Aug 18, 2025 | $176.17 | $181.56 | +3.06% |
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 (PANW) report earnings?
Palo Alto Networks (PANW) is schdueled to report earning on Aug 24, 2026, After Close (Confirmed).
What is Palo Alto Networks (PANW) earnings time?
Palo Alto Networks (PANW) earnings time is at Aug 24, 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 PANW EPS forecast?
PANW EPS forecast for the fiscal quarter 2026 (Q4) is 0.97.
