Palo Alto Networks

Palo Alto Networks sells cybersecurity products and services to companies and governments. Its platforms cover network security, such as firewalls and secure access, cloud security, security operations (Cortex), AI security (Prisma AIRS), identity security and observability. In fiscal 2026 it bought CyberArk, an identity security company, and Chronosphere, an observability company, and it bought four smaller companies in 2026. It has more than 70,000 customers.

Revenue was $11.48 billion in fiscal 2026, and subscription and support revenue was 80.1% of it. Next-Generation Security ARR, the yearly value of its newer products, was $9.10 billion at July 31, 2026. Its fiscal year ends on July 31.

The market doubts that Palo Alto Networks can turn its large 2026 purchases into steady organic growth and higher profit. It paid about $21.1 billion for CyberArk and $3.0 billion for Chronosphere in early 2026, and it bought four smaller companies. These deals raised Next-Generation Security ARR 63% to $9.10 billion at July 31, 2026, but much of that growth came from the purchases. GAAP operating income fell to $695 million in fiscal 2026 from $1,243 million, because of amortization, integration costs and share-based compensation.

In February 2026, the company lowered its fiscal 2026 non-GAAP EPS guidance to include CyberArk. Investors also ask whether the security tools of cloud providers and new AI tools can take part of the market. For the gap to close, three things must be true. Next-Generation Security ARR must reach the fiscal 2027 guidance of $11.075 billion to $11.175 billion, or growth of 22% to 23% with the purchases in the base.

The non-GAAP operating margin must reach the guided 29.5% and the adjusted free cash flow margin the guided 38.0% in fiscal 2027, on the way to the 40% target for fiscal 2028. Identity and observability sales must grow on the platform, which shows that the purchases add value. The Q1 fiscal 2027 report on November 18, 2026 is the first test, and the full fiscal 2027 results in about September 2027 give the full evidence. If these checks pass, the gap can close over the next four to six quarters.

The main reason it may not close is slower organic growth that the purchases now hide.

1. Nov 18, 2026Pending

   Q1 fiscal 2027 results: ARR after the purchasesNext-Generation Security ARR at or above the guided $9.54 billion to $9.56 billion and a confirmed or higher fiscal 2027 guidance pass; ARR below the range or lower fiscal 2027 guidance fail.
2. 2028Pending

   Fiscal 2028 free cash flow margin targetAn adjusted free cash flow margin of 40% in fiscal 2028 with ARR growth near 20% passes; a margin below 38% or much slower growth fails.

Every passed and failed checkpoint across all picks

• November 3, 2026Palo Alto Networks said that it will report Q1 fiscal 2027 results after the market closes on November 18, 2026, with a webcast at 4:30 p.m. ET.
• September 1, 2026Palo Alto Networks reported Q4 fiscal 2026 results. Revenue grew 34% to $3.41 billion, Next-Generation Security ARR grew 63% to $9.10 billion and remaining performance obligations grew 34% to $21.2 billion. The GAAP net loss was $282 million, including a $524 million loss from the change in fair value of the convertible notes and capped calls from CyberArk. Non-GAAP EPS was $1.02. For fiscal 2026, revenue was $11.48 billion and the adjusted free cash flow margin was 38.4%. For fiscal 2027, the company guides revenue of $14.10 billion to $14.20 billion and non-GAAP EPS of $4.16 to $4.19. On the same day, it completed the purchase of Console, an AI agent platform, for about $500 million in cash.
• August 27, 2026Palo Alto Networks completed the purchase of Embrace, a real user monitoring company, for its observability platform.

Last earnings

September 1, 2026 (8-K on sec.gov)

Next earnings

November 18, 2026, as the company confirmed.

• 10-KAnnual report for the period ended Jul 31, 2026Filed September 10, 2026 · panw-20260731
• 8-KEarnings releaseFiled September 1, 2026 · panw-20260901
• 8-KChange of directors or officers and Change to shareholder rights or bylawsFiled August 21, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Apr 30, 2026Filed June 3, 2026 · panw-20260430
• 8-KEarnings releaseFiled June 2, 2026 · panw-20260602
• 8-KNew material agreement and New debt or financial obligationFiled April 13, 2026 · Read it on sec.gov
• 8-KOther company newsFiled March 23, 2026 · Read it on sec.gov
• 8-KOther company newsFiled March 11, 2026 · panw-20260310
• 10-QQuarterly report for the period ended Jan 31, 2026Filed February 18, 2026 · panw-20260131
• 8-KEarnings releaseFiled February 17, 2026 · panw-20260217

Every filing on SEC EDGAR (CIK 1327567)

• The company must integrate CyberArk and Chronosphere, its two largest purchases. From the purchase dates to July 31, 2026, the two companies added $930 million of revenue and an operating loss of $797 million. If identity and observability sales do not grow on the platform, the purchases can lower returns and cause goodwill impairments.
• Competition is strong. Cloud providers add their own security tools, and other platforms compete for the same budgets. New AI tools can change how companies find and stop attacks. Slower growth of Next-Generation Security ARR would show this.
• Share-based compensation-related charges were $1.71 billion in fiscal 2026, or about 15% of revenue. Shares outstanding rose to 818 million on August 31, 2026 from 668 million a year earlier, mainly because of the stock paid for CyberArk.
• The CyberArk purchase made the company's operations in Israel much larger. Conflict in the Middle East can disrupt work there.
• The 0% convertible notes due 2030 can convert because the share price is above the conversion price of about $211.24. The company pays the principal in cash, and changes in the fair value of the notes and capped calls cause large non-cash gains and losses in GAAP results.

Palo Alto Networks has little debt. Its only debt is the 0% convertible senior notes due June 15, 2030, which it took over with CyberArk. Read more

Palo Alto Networks does not pay a dividend.

Source: company filings and market data, read on November 9, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.