Total revenue increased 31% year over year to $3.0 billion, including $388 million contributed by CyberArk and Chronosphere. The company's Next-Generation Security (NGS) Annual Recurring Revenue (ARR) grew 60% year over year to $8.1 billion, with the acquisitions contributing $1.6 billion. Remaining Performance Obligation (RPO) rose 36% to $18.4 billion, reflecting strong customer commitments and future revenue visibility.
On the profitability front, Palo Alto Networks reported a GAAP net loss of $177 million, or $0.22 per diluted share, while non-GAAP net income reached $684 million, or $0.85 per diluted share. The company generated $910 million in adjusted free cash flow during the quarter, resulting in a trailing 12-month adjusted free cash flow margin of 38.5%. Management stated that the company remains on track to achieve a 40% adjusted free cash flow margin by fiscal year 2028.
Outlook Q4 FY2026 Guidance
- Revenue: $3.345 billion–$3.355 billion (approximately 32% year-over-year growth)
- Non-GAAP diluted EPS: $0.96- $0.98
Full-Year FY2026 Guidance
- Revenue: $11.415 billion–$11.425 billion (approximately 24% year-over-year growth)
- NGS ARR: $8.90 billion–$8.95 billion (59%–60% year-over-year growth)
- Remaining Performance Obligation (RPO): $20.9 billion–$21.0 billion
- Adjusted free cash flow margin: 37.5%