Palo Alto Networks forecasts upbeat annual revenue after strong Q3 sales on AI deployments

Palo Alto Networks

02/06/2026 21:18

Overview
Cybersecurity firm's fiscal Q3 revenue rose 31% yr/yr to $3 bln
Adjusted EPS for fiscal Q3 increased to $0.85
Company posted GAAP net loss of $177 mln for the quarter

Outlook
Palo Alto Networks sees Q4 revenue of $3.345 bln to $3.355 bln
Company expects Q4 diluted non-GAAP EPS of $0.96 to $0.98
Palo Alto Networks forecasts FY26 revenue of $11.415 bln to $11.425 bln

Result Drivers
AI-DRIVEN DEMAND - Co said accelerating organic bookings growth was driven by customers seeking to secure AI deployments at scale
PLATFORM GROWTH - Co reported strong growth across each of its platforms, reflected in 60% yr/yr growth in Next-Generation Security ARR
ACQUISITION IMPACT - Revenue and ARR included contributions from CyberArk and Chronosphere acquisitions

Company press release: ID:nPnbsnKB6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$3.00 bln
 
Q3 Adjusted EPS
 
$0.85
 
Q3 EPS
 
-$0.22
 
Q3 Net Income
 
-$177 mln
 
Q3 Operating Income
 
-$183 mln
 
Q3 Pretax Profit
 
-$156 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Palo Alto Networks Inc is $232.50, about 22.6% below its June 1 closing price of $300.48
The stock recently traded at 77 times the next 12-month earnings vs. a P/E of 39 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)