Palo Alto Networks 8-K
PositiveEarningsNew guidance
Console acquisition aims to extend Cortex across enterprise operations with AI-native agentic workflows.
Filed 2026-09-01 16:32 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with Q1 and FY2027 guidance. Q4 revenue grew 34% Y/Y, while GAAP net income turned to a loss; Next-Generation Security ARR grew 63%. Palo Alto Networks also acquired Console, an AI-native agentic-workflow platform intended to extend Cortex across enterprise operations.
Key Figures
| Metric | Q4 2026 | Q4 2025 | Y/Y |
|---|---|---|---|
| Revenue | $3.41B | $2.54B | 34.5% |
| GAAP operating income | $172M | $497M | (65.4)% |
| Non-GAAP operating income | $1.01B | $768M | 31.6% |
| GAAP net income (loss) | $(282)M | $254M | n/m |
| Non-GAAP net income | $853M | $673M | 26.7% |
| GAAP diluted EPS | $(0.35) | $0.36 | n/m |
| Non-GAAP diluted EPS | $1.02 | $0.95 | 7.4% |
| Operating cash flow | $1.36B | $1.02B | 32.9% |
| Adjusted free cash flow, non-GAAP | $1.29B | $954M | 35.1% |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $11.5B | $9.22B | 24.5% |
| GAAP operating income | $695M | $1.24B | (44.1)% |
| Non-GAAP operating income | $3.36B | $2.65B | 26.6% |
| GAAP net income | $307M | $1.13B | (72.9)% |
| Non-GAAP net income | $2.93B | $2.35B | 25.0% |
| GAAP diluted EPS | $0.40 | $1.60 | (75.0)% |
| Non-GAAP diluted EPS | $3.84 | $3.34 | 15.0% |
| Operating cash flow | $4.55B | $3.72B | 22.5% |
| Adjusted free cash flow, non-GAAP | $4.41B | $3.51B | 25.9% |
- Q4 Next-Generation Security ARR was $9.10B (+63% Y/Y) and remaining performance obligations were $21.2B (+34%); management said net new Next-Generation Security ARR was nearly $1B for the quarter.
- FY2026 adjusted free cash flow margin was 38.4%, vs 38.0% in FY2025.
- At 7/31/2026, cash and cash equivalents were $2.51B; short- and long-term investments were $557M and $4.84B. Long-term convertible senior notes had a $1.77B balance-sheet carrying amount.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Next-Generation Security ARR | Q1 FY2027 | $9.54B-$9.56B; 63% Y/Y growth | — | — |
| Remaining performance obligations | Q1 FY2027 | $20.8B-$20.9B; 34%-35% Y/Y growth | — | — |
| Total revenue | Q1 FY2027 | $3.30B-$3.31B; 33%-34% Y/Y growth | — | — |
| Diluted EPS, non-GAAP | Q1 FY2027 | $0.96-$0.98; 837M-844M diluted shares | — | — |
| Next-Generation Security ARR | FY2027 | $11.075B-$11.175B; 22%-23% Y/Y growth | — | — |
| Remaining performance obligations | FY2027 | $25.2B-$25.4B; 19%-20% Y/Y growth | — | — |
| Total revenue | FY2027 | $14.1B-$14.2B; 23%-24% Y/Y growth | — | — |
| Operating margin, non-GAAP | FY2027 | 29.5% | — | — |
| Diluted EPS, non-GAAP | FY2027 | $4.16-$4.19; 844M-847M diluted shares | — | — |
| Adjusted free cash flow margin, non-GAAP | FY2027 | 38% | — | — |
| Adjusted free cash flow margin, non-GAAP | FY2028 | 40% target | — | — |
| Next-Generation Security ARR | FY2030 | $20B target | — | — |
Investor Takeaways
- Track Q1 FY2027 revenue, Next-Generation Security ARR, remaining performance obligations and non-GAAP diluted EPS against the stated ranges.
- FY2027 adjusted free cash flow margin and the FY2028 40% target will show progress toward management’s profitability goal; FY2030 Next-Generation Security ARR is a longer-term growth target.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3