Palo Alto Networks Q4 Earnings Beat Estimates With $3.41 Billion Revenue 

Mirror Review 

September 2, 2026

Palo Alto Networks Q4 earnings beat analyst estimates as the cybersecurity company reported $3.41 billion in fiscal fourth-quarter revenue, up 34% year over year. Non-GAAP diluted earnings reached $1.02 per share, compared with the $0.98 analyst estimate. The company released the results on September 1, 2026, for the quarter and fiscal year ended July 31, 2026.

Palo Alto Networks also issued its FY2027 guidance, forecasting revenue of $14.10 billion to $14.20 billion, representing 23% to 24% growth. Alongside the results, the company announced its acquisition of Console, an AI-native platform built to support agentic workflows across enterprise operations.

Key Q4 Financial Results

Revenue exceeded the $3.35 billion analyst estimate, while non-GAAP diluted EPS of $1.02 also beat the $0.98 analyst estimate. The company’s Next-Generation Security ARR reached $9.10 billion, while Remaining Performance Obligations increased to $21.2 billion.

Palo Alto Networks said it added nearly $1 billion in net new NGS ARR during the quarter. Chief Executive Officer Nikesh Arora also said the company saw strength across its Network & AI Security, Cortex, and Idira platforms.

AI Security Becomes a Larger Focus

AI security is becoming a larger focus for Palo Alto Networks as the company expands its security portfolio around AI and identity. Palo Alto Networks said recent advances in AI are elevating cybersecurity on the priority list for corporate technology leaders. 

That focus is also reflected in Palo Alto Networks’ broader product strategy. Its Next-Generation Security portfolio spans network security, cloud security, security operations, AI, and identity. 

The company’s results also show continued cybersecurity demand for its newer security products, with NGS ARR growing 63% year over year.

Console Acquisition Adds Agentic AI Capabilities

Palo Alto Networks announced the Console acquisition with its fiscal 2026 results. Console is an AI-native platform that enables agentic workflows across enterprise operations.

Palo Alto Networks said Console will expand the role of its Cortex platform across the broader enterprise agentic transformation. Reuters reported that the platform is designed to help organizations apply AI-driven analysis and action across enterprise operations.

The Console deal adds agentic capabilities to Palo Alto Networks’ broader security portfolio. The company completed its CyberArk acquisition on February 11, 2026, adding identity security capabilities covering human, machine, and agentic identities. 

Palo Alto Networks Raises FY2027 Guidance

The company expects fiscal 2027 to deliver continued growth across its main operating and financial measures.

Palo Alto Networks expects fiscal 2027 revenue to grow 23% to 24%, while NGS ARR should increase 22% to 23%. The revenue outlook also exceeds the roughly $13.79 billion analyst estimate reported after the results.

For the first quarter of fiscal 2027, the company expects revenue of $3.30 billion to $3.31 billion and non-GAAP diluted EPS of $0.96 to $0.98. It expects NGS ARR of $9.54 billion to $9.56 billion and RPO of $20.8 billion to $20.9 billion.

GAAP and Non-GAAP Results 

The quarter also produced a $282 million GAAP net loss, or $0.35 per diluted share, compared with $254 million in GAAP net income, or $0.36 per diluted share, a year earlier.

On a non-GAAP basis, Palo Alto Networks reported $853 million in net income, or $1.02 per diluted share, compared with $673 million, or $0.95 per diluted share, in the prior-year quarter.

The company’s non-GAAP reconciliation excludes several items, including acquisition-related costs, share-based compensation, and amortization of acquired intangible assets. For fiscal 2026, acquisition-related costs also included integration costs related to the CyberArk acquisition.

For the full fiscal year, Palo Alto Networks reported $11.48 billion in revenue, compared with $9.22 billion in fiscal 2025. Its adjusted free cash flow margin reached 38.4% for fiscal 2026.

What Palo Alto Networks’ FY2027 Outlook Signals

Palo Alto Networks enters fiscal 2027 with a $14.10 billion to $14.20 billion revenue outlook, alongside continued growth expectations for Next-Generation Security ARR. Its recent Console and CyberArk moves also expand the company’s capabilities across agentic and identity security. 

The next fiscal year will provide a clearer measure of how Palo Alto Networks executes its guidance while integrating Console and its broader security portfolio. 

Gurushanth S Jatti