Palo Alto Networks reported fourth quarter and fiscal year 2026 results that significantly outperformed market expectations across all major financial metrics. The company demonstrated strong momentum in its platformization strategy, adding nearly $1 billion in net new Next-Generation Security (NGS) ARR in the quarter alone, while maintaining high adjusted free cash flow margins of 38.4% for the full year.

Key Highlights

  • Next-Generation Security ARR grew 63% year-over-year to $9.10 billion, far exceeding the projected $5.15 billion.
  • Total revenue reached $3.41 billion for the quarter, a 34% increase over the prior year and well above the $2.74 billion consensus.
  • Remaining performance obligations (RPO) expanded 34% year-over-year to $21.2 billion, signaling sustained long-term enterprise demand.
  • Non-GAAP diluted EPS of $1.02 doubled the $0.51 estimate, reflecting improved operational scaling and platform efficiency.