PANW Palo Alto Networks Inc
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Executive Summary
Palo Alto Networks reported fiscal Q3 2026 revenue of $3.0B (+31% YoY, including $388M from CyberArk/Chronosphere), beating the $3.35B consensus by 10.4%. However, non-GAAP EPS of $0.85 missed the $0.98 consensus by 13.3%, driven by $198M in acquisition-related costs and $280M in amortization from the CyberArk deal. Guidance was raised: FY26 revenue now $11.415B-$11.425B (vs prior $11.28B-$11.31B) and non-GAAP EPS $3.77-$3.79 (vs prior $3.65-$3.70), signaling confidence in integration and margin expansion.
Key Financial Metrics
Actionable Insight
The revenue beat and raised guidance dominate the EPS miss, which is driven by one-time acquisition costs from CyberArk integration. Watch for Q4 FY26 guidance midpoint of $3.35B revenue and $0.97 non-GAAP EPS — if CyberArk integration synergies materialize faster than modeled, upside to FY27 estimates is likely. The 38.5% TTM adjusted FCF margin supports the FY28 40% target, a key catalyst for multiple expansion.
Key Facts
- Q3 FY26 total revenue $3.002B, +31% YoY, vs consensus $3.35B (beat by 10.4%)
- Non-GAAP EPS $0.85 vs consensus $0.98 (miss by 13.3%) due to $198M acquisition costs and $280M amortization
- Next-Generation Security ARR $8.1B, +60% YoY (including $1.6B from CyberArk/Chronosphere)
- RPO $18.4B, +36% YoY (including $1.8B from acquisitions)
- FY26 revenue guidance raised to $11.415B-$11.425B (prior $11.28B-$11.31B), non-GAAP EPS raised to $3.77-$3.79 (prior $3.65-$3.70)
- Adjusted FCF margin 38.5% TTM, +430bps YoY; Q3 adjusted FCF $910M vs $578M YoY
- GAAP net loss ($177M) vs GAAP net income $262M YoY due to acquisition-related charges
- Operating cash flow $871M, +39% YoY
Financial Impact
Revenue beat by ~$348M (10.4%) vs consensus; EPS miss of $0.13 (13.3%) vs consensus; FY26 guidance raised by $135M-$115M on revenue and $0.12-$0.09 on EPS
Risk Factors
- Integration risk from CyberArk and Chronosphere acquisitions — $21.9B goodwill on balance sheet
- GAAP net loss of ($177M) may concern credit-focused investors
- Competitive pressure from CrowdStrike, Microsoft, and Zscaler in AI security
- Dilution from 801M diluted shares (vs 707M YoY) due to acquisition-related equity issuance
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001327567-26-000012 |
| Document: panw-20260602.htm | 0001327567-26-000012 |
| Document: 0001327567-26-000012-index-headers.html | 0001327567-26-000012 |
| Document: 0001327567-26-000012-index.html | 0001327567-26-000012 |
| Document: 0001327567-26-000012.txt | 0001327567-26-000012 |
| 8-K Data (Synthetic) | 0001327567-26-000012 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 2, 2026
12d ago
|
8-K
| $278.99 awaiting T+5 | awaiting T+5 | — | $279.62 (+0.23%) |
|
May 31, 2026
14d ago
|
ANALYST-UPGRADE
| $181.98 $188.70 | ▲ +3.69% | ▲ +2.61% | $279.62 (+53.65%) |
|
May 27, 2026
18d ago
|
Insider Cluster
| $257.11 $278.71 | ▲ +8.40% | ▲ +8.08% | $279.62 (+8.75%) |
|
May 1, 2026
6w ago
|
ANALYST-UPGRADE
| $181.98 $188.70 | ▲ +3.69% | ▲ +2.61% | $279.62 (+53.65%) |
|
Apr 11, 2026
9w ago
|
8-K
| $162.44 $169.49 | ▲ +4.34% | ▲ +1.04% | $279.62 (+72.13%) |
|
Apr 1, 2026
10w ago
|
Insider Cluster
| $160.60 $166.87 | ▼ −3.90% | ▼ −0.14% | $279.62 (−74.11%) |
|
Mar 27, 2026
11w ago
|
Insider Cluster
| $146.69 $161.81 | ▲ +10.31% | ▲ +6.45% | $279.62 (+90.61%) |
|
Feb 28, 2026
15w ago
|
Institutional Cluster
| $150.08 $164.64 | ▲ +9.70% | ▲ +10.91% | $279.62 (+86.31%) |
US Market Status
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