Palo Alto Networks Reports Strong Q4 Results, Adds $1B in NGS ARR
SANTA CLARA, Calif., Sept. 1, 2026 /CourierPR/ -- Palo Alto Networks, the global AI cybersecurity leader, reported strong financial results for its fiscal fourth quarter and year ending July 31, 2026. The company added nearly $1 billion of new Net New Next-Generation Security (NGS) Annual Recurring Revenue (ARR) in the quarter, marking a significant milestone.
Chairman and CEO Nikesh Arora highlighted the company’s success, stating, "We delivered a robust Q4 to close out the year, adding nearly $1 billion of Net New NGS ARR in a single quarter. The latest advancements in AI are elevating cybersecurity to the top of the CIO priority list, and will serve as durable tailwinds as we progress towards our $20 billion FY30 NGS ARR target."
Chief Financial Officer Dipak Golechha added, "We delivered a strong finish to a record year, exceeding our guidance across the board, fueled by strength across our Network & AI Security, Cortex, and Idira platforms. Our profitable growth framework continues to scale effectively, reinforcing our confidence in achieving a 40% adjusted free cash flow margin in FY28."
Key financial highlights for the quarter include: - Total revenue for the fiscal fourth quarter 2026 grew 34% year over year to $3.41 billion. - NGS ARR for the fiscal fourth quarter 2026 grew 63% year over year to $9.10 billion. - Remaining performance obligations grew 34% year over year to $21.2 billion. - GAAP operating income for the fiscal fourth quarter 2026 was $172 million, compared with $497 million in the fiscal fourth quarter 2025. Non-GAAP operating income for the fiscal fourth quarter 2026 was $1.0 billion, compared with $768 million in the fiscal fourth quarter 2025. - GAAP net loss for the fiscal fourth quarter 2026 was $282 million, or ($0.35) per diluted share, compared with GAAP net income of $254 million, or $0.36 per diluted share, in the fiscal fourth quarter 2025. Non-GAAP net income for the fiscal fourth quarter 2026 was $853 million, or $1.02 per diluted share, compared with $673 million, or $0.95 per diluted share, in the fiscal fourth quarter 2025. - Net cash provided by operating activities for the fiscal fourth quarter 2026 was $1.4 billion, compared with $1.0 billion in the fiscal fourth quarter 2025. Adjusted free cash flow for the fiscal fourth quarter 2026 was $1.3 billion, compared with $954 million in the fiscal fourth quarter 2025. Fiscal year 2026 adjusted free cash flow margin was 38.4%.
Palo Alto Networks has also acquired Console, an AI-native platform that enables agentic workflows across enterprise operations. The acquisition is expected to expand the role of the Cortex platform in the broader enterprise agentic transformation.
For the fiscal first quarter of 2027, the company expects: - NGS ARR of $9.54 billion to $9.56 billion, representing year-over-year growth of 63%. - Remaining performance obligations of $20.8 billion to $20.9 billion, representing year-over-year growth of 34% to 35%. - Total revenue in the range of $3.300 billion to $3.310 billion, representing year-over-year growth of 33% to 34%. - Diluted non-GAAP net income per share in the range of $0.96 to $0.98, using 837 million to 844 million shares outstanding.
For the fiscal year 2027, the company forecasts: - NGS ARR of $11.075 billion to $11.175 billion, representing year-over-year growth of 22% to 23%. - Remaining performance obligations of $25.2 billion to $25.4 billion, representing year-over-year growth of 19% to 20%. - Total revenue in the range of $14.10 billion to $14.20 billion, representing year-over-year growth of 23% to 24%. - Non-GAAP operating margin of 29.5%. - Diluted non-GAAP net income per share in the range of $4.16 to $4.19, using 844 million to 847 million shares outstanding. - Adjusted free cash flow margin to be 38.0%.
Palo Alto Networks will host a video webcast to discuss the company’s financial results and outlook for the fiscal first quarter and year 2027 today at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. The webcast and earnings slides are available on the company’s website at investors.paloaltonetworks.com, and a replay will be available three hours after the conclusion of the webcast and archived for one year.
The company’s forward-looking statements are subject to various risks and uncertainties, including market and economic conditions, geopolitical factors, and technological developments.