Palo Alto Networks Q4 FY2026 Revenue Rises 34% to $3.41 Billion

Palo Alto Networks (PANW ) on September 1, 2026 reported total revenue of $3.41 billion for its fiscal fourth quarter ended July 31, 2026, up 34% year over year, capping a fiscal 2026 in which revenue reached $11.48 billion against $9.22 billion a year earlier, according to the company’s earnings release.

The Santa Clara, California-based cybersecurity company said Next-Generation Security annualized recurring revenue grew 63% year over year to $9.10 billion, while remaining performance obligations grew 34% to $21.2 billion. GAAP operating income for the quarter was $172 million, compared with $497 million in the fiscal fourth quarter of 2025; non-GAAP operating income was $1.0 billion, compared with $768 million a year earlier.

The company reported a GAAP net loss of $282 million, or ($0.35) per diluted share, for the quarter, compared with GAAP net income of $254 million, or $0.36 per diluted share, in the prior-year period. Non-GAAP net income was $853 million, or $1.02 per diluted share, compared with $673 million, or $0.95 per diluted share, a year earlier. Reconciliations in the release show the GAAP result includes $524 million of change in fair value of convertible senior notes and capped calls, $487 million of share-based compensation-related charges, $281 million of amortization of acquired intangible assets, and $68 million of acquisition-related costs.

Cash Flow and Full-Year Results

Net cash provided by operating activities was $1.4 billion for the quarter, compared with $1.0 billion a year earlier, and adjusted free cash flow was $1.3 billion, compared with $954 million. Adjusted free cash flow margin for fiscal 2026 was 38.4%, compared with 38.0% in fiscal 2025, the company reported.

For the full fiscal year, GAAP net income was $307 million, or $0.40 per diluted share, down from $1.13 billion, or $1.60 per diluted share, in fiscal 2025. Non-GAAP net income rose to $2.93 billion, or $3.84 per diluted share, from $2.35 billion, or $3.34 per diluted share. Operating cash flow for the year was $4.55 billion and adjusted free cash flow was $4.41 billion, up from $3.72 billion and $3.51 billion respectively.

The balance sheet reflects the year’s acquisition activity: goodwill stood at $22.0 billion at July 31, 2026, up from $4.6 billion a year earlier, intangible assets rose to $7.0 billion from $763 million, and total assets reached $48.5 billion against $23.6 billion. Cash and cash equivalents were $2.5 billion.

Platform Revenue and Security Metrics

The company’s supplemental financial information breaks fiscal 2026 revenue into platforms: Network & AI Security generated $8.35 billion, up from $7.13 billion; Cortex generated $1.92 billion, up from $1.54 billion; and Idira, the identity security business built around CyberArk, contributed $614 million with no comparable prior-year figure. In the fourth quarter, subscription and support revenue was $2.67 billion and product revenue was $738 million.

The quarter’s GAAP figures absorb the first full year of integrating CyberArk, whose acquisition closed on February 11, 2026, and Chronosphere, whose acquisition the company completed on January 29, 2026. Acquisition-related costs for fiscal 2026 totaled $295 million and included CyberArk integration costs, per the release footnotes.

According to the company’s earnings presentation, the quarter added approximately $970 million of net new NGS ARR and a record roughly 220 net new platformizations. The presentation states that XSIAM ARR exceeded $700 million, up roughly 70% year over year; observability ARR more than doubled in two quarters to over $500 million; Prisma AIRS ARR reached approximately $120 million one year after general availability; and software firewall ARR grew 29% in the quarter. Customers with more than $5 million of NGS ARR numbered 223, up 45% year over year, the presentation states. Fourth-quarter results exceeded the guidance ranges the company issued on June 2, 2026, which had called for revenue of $3.345 billion to $3.355 billion and non-GAAP EPS of $0.96 to $0.98.

Fiscal 2027 Outlook

For the fiscal first quarter of 2027, the company guided to Next-Generation Security ARR of $9.54 billion to $9.56 billion, total revenue of $3.30 billion to $3.31 billion, and diluted non-GAAP net income per share of $0.96 to $0.98 using 837 million to 844 million shares. For fiscal 2027, it expects Next-Generation Security ARR of $11.075 billion to $11.175 billion, remaining performance obligations of $25.2 billion to $25.4 billion, revenue of $14.10 billion to $14.20 billion, non-GAAP operating margin of 29.5%, non-GAAP EPS of $4.16 to $4.19, and adjusted free cash flow margin of 38.0%.

“We delivered a strong Q4 to close out the year, adding nearly $1 billion of Net New NGS ARR in a single quarter,” said Nikesh Arora, chairman and chief executive officer. Chief financial officer Dipak Golechha said the company “exceeded our guidance across the board” and reiterated confidence in achieving 40% adjusted free cash flow margin in fiscal 2028.

The release also disclosed that Palo Alto Networks has acquired Console, an AI-native platform that enables agentic workflows across enterprise operations, which the company said will expand the role of its Cortex platform. The company hosted a video webcast for analysts and investors at 4:30 p.m. Eastern time on September 1, 2026, and said a replay would be archived for one year.