Palo Alto Networks

PANW Q3 2026 Earnings

Reported Jun 2, 2026 at 4:08 PM ET · SEC Source

Q3 26 EPS

$0.85

Q3 26 Revenue

$3.00B

BEAT +1.96%

Est. $2.94B

vs S&P Since Q3 26

-7.0%

TRAILING MARKET

PANW -9.2% vs S&P -2.2%

Market Reaction

Did PANW Beat Earnings? Q3 2026 Results

Palo Alto Networks delivered a convincing fiscal third-quarter 2026, beating Wall Street expectations on both the top and bottom lines and extending its EPS beat streak to five consecutive quarters. The cybersecurity giant reported non-GAAP earnings … Read more Palo Alto Networks delivered a convincing fiscal third-quarter 2026, beating Wall Street expectations on both the top and bottom lines and extending its EPS beat streak to five consecutive quarters. The cybersecurity giant reported non-GAAP earnings of $0.85 per diluted share, ahead of the $0.80 consensus by 6.65%, while revenue climbed 31.1% year over year to $3.00 billion, edging past the $2.94 billion estimate by 1.96%. The headline growth story was powered in part by the CyberArk and Chronosphere acquisitions, which together contributed $388.00 million to revenue, but organic momentum was equally notable, with Next-Generation Security ARR surging 60% to $8.10 billion as customers accelerated efforts to secure AI deployments at scale, a trend analysts broadly see benefiting platform-centric security vendors. Operating cash flow expanded to $871.00 million from $628.00 million a year ago, underscoring improving cash generation. Looking ahead, management guided fiscal Q4 revenue of $3.35 billion and non-GAAP EPS of $0.96 to $0.98, with full-year adjusted free cash flow margin targeted at 37.5%, keeping the company on track toward its 40% margin goal by FY28.

Key Takeaways

  • Accelerating organic bookings growth driven by customer demand to secure AI deployments
  • 31% total revenue growth year over year, including $388 million from CyberArk and Chronosphere acquisitions
  • Next-Generation Security ARR grew 60% year over year to $8.1 billion
  • Remaining performance obligation grew 36% year over year to $18.4 billion
  • Non-GAAP operating income grew to $814 million from $627 million year over year
  • Trailing 12-month adjusted free cash flow margin of 38.5%, up 430 basis points year over year

PANW Forward Guidance & Outlook

For fiscal Q4 2026, Palo Alto Networks expects NGS ARR of $8.90–$8.95 billion (59–60% YoY growth), RPO of $20.9–$21.0 billion (32–33% growth), total revenue of $3.345–$3.355 billion (32% growth), and non-GAAP EPS of $0.96–$0.98. For full fiscal year 2026, the company expects total revenue of $11.415–$11.425 billion (24% growth), non-GAAP operating margin of 28.9–29.2%, non-GAAP EPS of $3.77–$3.79, and adjusted free cash flow margin of 37.5%. The company remains on track to achieve 40% adjusted free cash flow margin by FY28.

24/7 Wall St

PANW YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

PANW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q3 26

“Q3 was a standout quarter for Palo Alto Networks, with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.”

— Nikesh Arora, Q3 2026 Earnings Press Release