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11h ago

Palo Alto Networks Beats Q4 and Raises FY26 Outlook on AI-Driven Security Demand

Shares rose after upbeat guidance that excludes the pending CyberArk acquisition.

A Palo Alto Networks logo is seen in this illustration taken August 18, 2025. REUTERS/Dado Ruvic/Illustration
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Overview

  • Fiscal Q4 revenue came in at $2.54 billion and adjusted EPS at $0.95, topping Wall Street estimates.
  • For fiscal 2026, the company projected $10.48–$10.53 billion in revenue and $3.75–$3.85 in adjusted EPS, with first‑quarter guidance also ahead of consensus.
  • Recurring-revenue indicators strengthened as Next‑Generation Security ARR rose about 32% to $5.6 billion and RPO increased 24% to $15.8 billion.
  • Management highlighted demand for AI-enabled offerings including Cortex Cloud and Prisma AIRS as enterprises consolidate onto its platform.
  • Founder and CTO Nir Zuk retired as Lee Klarich was named CTO and added to the board, while shares gained roughly 5% to 7% post‑report and several analysts lifted ratings or targets; guidance does not factor in the $25 billion CyberArk deal expected to close in 2026.