Palo Alto Networks Q4 revenue beats estimates on NGS ARR growth

Palo Alto Networks

01/09/2026 21:17

Overview
Cybersecurity firm's fiscal Q4 revenue rose 34% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q4 beat analyst expectations
On September 1st, Company announced the acquisition of Console, an AI-native platform, to expand Cortex capabilities

Outlook
Company sees Q1 2027 revenue of $3.3 bln to $3.31 bln
Palo Alto Networks expects FY27 revenue of $14.1 bln to $14.2 bln
Company expects FY27 non-GAAP operating margin of 29.5%

Result Drivers
NEXT-GEN SECURITY ARR - Co said Q4 results were driven by 63% yr/yr growth in Next-Generation Security ARR
PLATFORM STRENGTH - Strength across Network & AI Security, Cortex, and Idira platforms fueled results, per CFO Dipak Golechha
AI PRIORITY TAILWINDS - Co said latest AI advancements elevated cybersecurity to CIO priority, providing durable tailwinds, per CEO Nikesh Arora

Company press release: ID:nPnb4RFz6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$3.41 bln
$3.35 bln (42 Analysts)
Q4 Adjusted EPS
Beat
$1.02
$0.98 (43 Analysts)
Q4 Loss Per Share
 
$0.35
 
Q4 Net Loss
 
$282 mln
 
Q4 Operating Income
 
$172 mln
 
Q4 Pretax Loss
 
$269 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 44 "strong buy" or "buy", 12 "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 $380.00, about 0.6% below its August 31 closing price of $382.13
The stock recently traded at 93 times the next 12-month earnings vs. a P/E of 72 three months ago

Reuters Recommended Reads
Sept 1 - Dell again lifts forecasts as AI demand powers record results
Sept 1 - German cybersecurity firm Cyan H1 prelim revenue rises on surge in end-customer base
     

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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.)