Highlights

  • Palo Alto Networks shares were trading at $380.55 on October 23, 2026, up 7.22%.
  • Fiscal 2026 revenue was $11,480 million, up 24% from $9,221 million in fiscal 2025.
  • Net income fell to $307 million, or $0.40 per diluted share, from $1,134 million a year earlier.
  • The company completed its $21.1 billion acquisition of CyberArk in February 2026, alongside several smaller tuck-in acquisitions during the year.

Palo Alto Networks (NASDAQ: PANW) shares were trading at USD 380.55 on October 23, 2026, up 7.22%. The cybersecurity company reported fiscal 2026 results on September 10 showing accelerating revenue growth and a sharply lower GAAP net income, as the costs of integrating its largest-ever acquisition weighed on near-term profitability.

Palo Alto Networks’ mission is to be the cybersecurity partner of choice, delivering comprehensive protection for enterprise users, networks, clouds, endpoints, AI applications and agents, and identities, backed by AI and automation. A central element of the company’s strategy is “platformization,” combining products and services into integrated architectures intended to help customers consolidate point solutions. Fiscal 2026 ended July 31, 2026.

Revenue Accelerates, but Integration Costs Compress Margins

Total revenue for fiscal 2026 was $11,480 million, up 24% from $9,221 million in fiscal 2025 and $8,027 million in fiscal 2024, with product revenue of $2,280 million and subscription and support revenue of $9,200 million. Gross margin was 70.4%, down from 73.4% a year earlier. Operating expenses rose to $7,382 million from $5,527 million, including a jump in general and administrative expenses to $899 million from $443 million. As a result, operating income fell to $695 million from $1,243 million, and operating margin declined to 6.1% from 13.5%. Other income swung to an expense of $159 million from income of $353 million a year earlier. Net income was $307 million, or $0.40 per diluted share, compared with $1,134 million, or $1.60 per share, in fiscal 2025.

Despite the lower GAAP profitability, cash generation improved: net cash provided by operating activities rose to $4,553 million from $3,716 million, and free cash flow, a non-GAAP measure, rose to $4,113 million from $3,469 million.

CyberArk Anchors a Wave of Platform Acquisitions

On February 11, 2026, Palo Alto Networks completed its acquisition of CyberArk Software Ltd. for total purchase consideration of $21.1 billion, forming what the company calls its next-generation identity security platform; the company recognized $3.5 billion of platform renewals intangible assets in connection with the deal. The acquisition followed the January 29, 2026 close of its purchase of Chronosphere, an observability technology company. During the rest of fiscal 2026, Palo Alto Networks completed smaller acquisitions of Koi, adding agentic endpoint security capabilities to Prisma AIRS, and Portkey, an AI Gateway company enhancing Prisma AIRS, and entered definitive agreements to acquire Embrace, a Real User Monitoring company for its observability platform, and Console Systems, an AI-native platform intended to deepen agentic capabilities in Cortex. On July 16, 2026, the company announced general availability of Prisma AIRS Gateway, incorporating AI gateway capabilities acquired through Portkey.

Key Operating Metrics Point to Strengthening Demand

Palo Alto Networks’ Next-Generation Security Annualized Recurring Revenue, a key metric the company uses to track the strength of its platform business, grew to $9.1 billion as of July 31, 2026, from $5.6 billion a year earlier. Remaining performance obligations rose to $21.2 billion from $15.8 billion. The company said its mix of product, subscription and support revenue continues to shift toward recurring, platform-based offerings as customers consolidate vendors and adopt its integrated architecture across network, cloud, endpoint and identity security categories.

Management has said it continues to monitor macroeconomic and geopolitical developments, including tensions in Israel, where it maintains operations, and ongoing U.S.-China trade dynamics, as factors that could affect customer spending and its cost structure in future periods.