Palo Alto Networks, Inc. Q1 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Software | Market Cap: ₹2.1L Cr
- Q3 2026 revenue expected between $2.941 billion and $2.945 billion, up 28%-29%, including $340 million from M&A. - Fiscal Q3 2026 guidance: - NGS ARR expected in range of $7.94B to $7.96B, up 56% (includes $1.47B from M&A) - Revenue expected between $2.941B to $2.945B, up 28-29% (includes $340M from M&A) -
From Palo Alto Networks, Inc.'s Q1 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹257.77
Market Cap
₹2.1L Cr
P/E Ratio
142.6
Revenue Rank
Margin Rank
How does Palo Alto Networks, Inc. rank in Software?
Compare Palo Alto Networks, Inc. against every Software company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 2- →Q3 2026 revenue expected between $2.941 billion and $2.945 billion, up 28%-29%, including $340 million from M&A.
- →Fiscal year 2026 revenue forecasted at $11.28 billion to $11.31 billion, a 22%-23% increase, including $760 million from M&A.
- →Next-generation security ARR to reach $7.94 billion to $7.96 billion in Q3 (56% growth) and $8.52 billion to $8.62 billion for FY 2026 (53%-54% growth).
- →Growth driven by platformization strategy, AI security products (Prisma AIRS), SASE, software firewalls, and XSIAM.
- →Adoption of AI security solutions is early but growing; over 100 customers for Prisma AIRS, customers ramping AI deployment.
- →Enterprise AI traffic currently low but expected to grow as large data centers come online, increasing future demand.
- →Software product revenue growing, supported by rising hardware demand and new product introductions.
- →Strong volume growth in secure browser licenses (over 2 million Q2 sales).
📈 Profitability & Margins
Rank 3- →Fiscal Q3 2026 guidance:
- → - NGS ARR expected in range of $7.94B to $7.96B, up 56% (includes $1.47B from M&A)
- → - Revenue expected between $2.941B to $2.945B, up 28-29% (includes $340M from M&A)
- → - Diluted non-GAAP EPS of $0.78 to $0.80
- →Fiscal year 2026 guidance:
- → - NGS ARR of $8.52B to $8.62B, up 53-54% (includes $1.52B from M&A)
- → - Revenue expected between $11.28B to $11.31B, up 22-23% (includes $760M from M&A)
- → - Operating margins between 28.5% to 29%
- → - Diluted non-GAAP EPS of $3.65 to $3.70
- → - Adjusted free cash flow margin targeted at 37%
- →Long-term goals:
- → - Achieve 40% free cash flow margin by fiscal 2028
- → - Reach $20 billion in NGS ARR by fiscal 2030
🏗️ Capital Expenditure Plans
Yes- →The document does not explicitly detail specific current or future capital expenditures (capex) or strategic capital investments.
- →However, it highlights significant recent acquisitions: CyberArk and Chronosphere, with combined cash outlay of approximately $4.9 billion, signaling strategic investment in expanding product capabilities and market reach.
- →Emphasis on platformization strategy with investments in AI-driven security products (e.g., Prisma AIRS, AgentiX) and integration plans for acquired companies.
- →Plans to achieve 40% free cash flow margin by fiscal 2028, indicating disciplined capital management.
- →Confidence in handling supply chain dynamics and leveraging scale, suggesting ongoing investment to manage costs and efficiency.
- →Investment focus appears centered on R&D, M&A, and integration for growth rather than traditional capex projects like infrastructure or facilities.
💰 Fundraising & Capital Structure
No information- →The company recently closed the CyberArk acquisition with a $2.3 billion cash outlay expected in Q3, and combined with the Chronosphere acquisition, total cash outlay is $4.9 billion.
- →In connection with the CyberArk acquisition, the company guaranteed payment obligations on CyberArk’s convertible senior notes due 2030.
- →The acquisition triggered a make-whole fundamental change under these notes, and the company plans to make an offer to repurchase these notes in the coming days.
- →The company issued 112 million shares as consideration for the CyberArk acquisition.
- →No explicit mention of new fundraising through debt or equity beyond these activities related to acquisitions.
- →Guidance and financial planning currently factor in these acquisitions and associated financing moves.
📋 Order Book & Pipeline
Yes- →Remaining Performance Obligation (RPO) grew 23% to $16.0 billion, including approx. $150 million from Chronosphere acquisition.
- →Current near-term revenue realization represented by current RPO is $7.1 billion, an 18% growth.
- →For fiscal Q3 2026, the remaining performance obligation is expected to be in the range of $17.85 billion to $17.95 billion, a 32% to 33% increase, including $1.6 billion contribution from M&A.
- →Full-year 2026 RPO guidance is $20.2 billion to $20.3 billion, a 28% increase inclusive of $1.6 billion from M&A.
- →These figures reflect a strong and growing order backlog supporting recurring revenue streams.
Key Metrics
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Capex
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Order Book
Frequently Asked Questions
What were Palo Alto Networks, Inc. Q1 FY26 results?
- Q3 2026 revenue expected between $2.941 billion and $2.945 billion, up 28%-29%, including $340 million from M&A. - Fiscal Q3 2026 guidance: - NGS ARR expected in range of $7.94B to $7.96B, up 56% (includes $1.47B from M&A) - Revenue expected between $2.941B to $2.945B, up 28-29% (includes $340M from M&A) -
What is Palo Alto Networks, Inc. share price analysis?
Palo Alto Networks, Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 142.6 with a market cap of $210,340. Investors should review the full earnings analysis for detailed insights.
Is Palo Alto Networks, Inc. planning capital expenditure?
- The document does not explicitly detail specific current or future capital expenditures (capex) or strategic capital investments.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.