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Sentiment · FY2026 Q3
Palo Alto Networks posted Q2 revenue of $2.59 billion, up 15%, with NGS ARR growing 33% to $6.33 billion including $200 million from Chronosphere. Record platformizations showed broad-based organic strength, with SASE surpassing $1.5 billion ARR and XSIAM exceeding $500 million ARR. The CyberArk and Chronosphere acquisitions closed with strong early momentum. However, FY2026 EPS guidance was lowered to $3.65-$3.70 due entirely to M&A dilution from the CyberArk 112 million share issuance.
Cloud & AI | Competitive Dynamics | Revenue Growth | M&A | Innovation & R&D | Demand | Product Launch | Margin | |
|---|---|---|---|---|---|---|---|---|
| 2025Q1 | 2 | 7 | 2 | 2 | 1 | 2 | 2 | 1 |
| 2025Q2 | 5 | 4 | 4 | 1 | 1 | 2 | 2 | |
| 2025Q3 | 6 | 2 | 4 | 2 | 3 | 1 | ||
| 2025Q4 | 2 | 4 | 3 | 1 | 1 | 1 | ||
| 2026Q1 | 6 | 3 | 3 | 5 | 3 | 2 | 1 | 1 |
| 2026Q2 | 5 | 3 | 4 | 5 | 1 | 2 |
| '25Q1 | '25Q2 | '25Q3 | '25Q4 | '26Q1 | '26Q2 | |
|---|---|---|---|---|---|---|
| Cloud & AI | 2 | 5 | 6 | 2 | 6 | 5 |
| Competitive Dynamics | 7 | 4 | 2 | 4 | 3 | 3 |
| Revenue Growth | 2 | 4 | 4 | 3 | 3 | 4 |
| M&A | 2 | 1 | 2 | 1 | 5 | 5 |
| Innovation & R&D | 1 | 1 | 3 | 3 | 1 | |
| Demand | 2 | 2 | 2 | 2 | ||
| Product Launch | 2 | 1 | 1 | 1 | ||
| Margin | 1 | 2 | 1 | 1 |
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Saket Kalia | Barclays | 7 (0%) |
| Brian Essex | JPMorgan | 6 (0%) |
| Matt Hedberg | RBC Capital Markets | 6 (0%) |
| Brad Zelnick | Deutsche Bank | 4 (0%) |
| Gabriela Borges | Goldman Sachs | 4 (0%) |
| Shaul Eyal | TD Cowen | 4 (0%) |
| Joe Gallo | Jefferies | 4 (0%) |
| Robbie Owens | Piper Sandler | 4 (0%) |
| Andy Nowinski | Wells Fargo | 3 (33%) |
| Meta Marshall | Morgan Stanley | 3 (0%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Barclays | 1 | 7 (0%) |
| Morgan Stanley | 3 | 6 (0%) |
| JPMorgan | 1 | 6 (0%) |
| RBC Capital Markets | 1 |
Reporting soon: earnings call Tuesday, Sep 1
A pre-earnings brief is ready for PANW: the setup, what peers and partners said this season, and which analysts to watch. Reading it is a Tellvest Pro feature.
What PANW and other companies said about each other on FY2026 Q2 earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“we saw great results from our technology partnership with Palo Alto Networks, ensuring the routing edge integrated securely and seamlessly with our overarching security architecture.”
Arista credits its technology partnership with Palo Alto Networks for winning a fiber-to-the-home service-provider deal, a positive read-through for PANW's integration at the routing edge.
“our secure browser, which stems from a strategic bet we made a few years ago with the acquisition of Talon.”
Palo Alto's Prisma Browser (9M+ licenses, 1,500+ customers) stems from its earlier acquisition of secure-browser vendor Talon.
“That's why you see us buy protect.ai, which is now well integrated.”
Palo Alto cites its now-integrated acquisition of protect.ai as part of building out its AI-security platform.
“As part of the CyberArk deal, we've acquired Venafi.”
Palo Alto gained machine-identity/certificate vendor Venafi through the CyberArk acquisition, feeding its quantum/certificate-lifecycle roadmap.
“This is why I'm excited to announce our intent to acquire Koi, a pioneer in securing the next major inflection point in security, the agentic endpoint.”
Palo Alto announced intent to acquire Koi, an agentic-endpoint security startup it had already been a customer of, to bolster XDR and AI-security capabilities.
“In the age of AI, Chronosphere offers a unique value proposition, delivers observability at a massive scale, proven in production today”
Palo Alto acquired observability vendor Chronosphere (~$200M ARR, above expectations), which signed a 9-figure expansion with a leading AI model provider post-close.
“We're delighted to have closed the acquisition of CyberArk early in Q3 and are ready to execute on what I believe is a massive opportunity in identity security.”
Palo Alto Networks closed its acquisition of CyberArk to enter identity security; CyberArk is noted coming off a record December quarter with 30% subscription ARR growth.
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $2.19B | +12.1% | $0.51 | +59.4% | 73.8% | 10.9% | 16.3% | $465M |
| FY2025 Q1 | $2.14B | +13.9% | $0.49 | +75.0% | 74.1% | 13.4% | 16.4% | $1.47B |
| FY2025 Q2 | $2.26B | +14.3% | $0.38 |
| 6 (0%) |
| Piper Sandler | 1 | 4 (0%) |
| Jefferies | 1 | 4 (0%) |
| Goldman Sachs | 1 | 4 (0%) |
| Deutsche Bank | 1 | 4 (0%) |
| -84.4% |
| 73.5% |
| 10.6% |
| 11.8% |
| $509M |
| FY2025 Q3 | $2.29B | +15.3% | $0.37 | -5.1% | 72.9% | 9.6% | 11.5% | $560M |
| FY2025 Q4 | $2.54B | +15.8% | $0.36 | -29.4% | 73.2% | 19.6% | 10.0% | $1.18B |
| FY2026 Q1 | $2.47B | +15.7% | $0.47 | -4.1% | 74.2% | 12.5% | 13.5% | $1.69B |
| FY2026 Q2 | $2.59B | +14.9% | $0.60 | +57.9% | 73.6% | 15.4% | 16.7% | $638M |
| FY2026 Q3 | $3.00B | +31.1% | $-0.28 | -175.7% | 67.6% | -6.1% | -5.9% | $788M |
Management’s own words, often on a non-GAAP, constant-currency, or adjusted basis — so these can differ from the GAAP figures above (e.g. constant-currency revenue growth excludes currency swings).
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
PANW Palo Alto Networks | 6 | +14.9% | |
| ADBE Adobe Inc. | 7 | +12.0% | |
| AKAM Akamai Technologies | 6 | +5.8% | |
| CPAY Corpay | 8 | +25.4% | |
| CRWD CrowdStrike | 9 | +23.3% | |
| CRWV CoreWeave, Inc. Class A Common Stock | 8 | +111.7% | |
| FFIV F5, Inc. | 8 | +11.0% | |
| FTNT Fortinet | 10 | +20.1% | |
| GDDY GoDaddy | 7 | +6.1% | |
| GEN Gen Digital | 6 | +27.0% | |
| MSFT Microsoft Corporation | 9 | +18.3% | |
| NET Cloudflare, Inc. | 10 | +33.5% | |
| ORCL Oracle Corporation | 9 | +21.7% | |
| PLTR Palantir Technologies | 10 | +84.7% | |
| SNPS Synopsys | 7 | +65.5% | |
| VRSN Verisign | 7 | +6.6% | |
| XYZ Block, Inc. | 8 | +4.9% | |
| ZS Zscaler | 9 | +25.9% |