Palo Alto Networks, Inc. · Q4 FY2026

The quarter in short

Revenue $3.41B, up 34.5% year over year and 13.6% on the quarter. Non-GAAP EPS $1.02, up 7.4% year over year and 20.0% on the quarter. GAAP EPS −$0.35. Free cash flow $1.25B, up 34.2% year over year and 59.1% on the quarter. Non-GAAP EPS beat consensus by 4%. Rule of 40 score +71.

What we learned

1. The organic disclosure is gone; a platform split replaced it. No ex-acquisition revenue, ARR or current RPO growth this quarter. In its place, fiscal 2026 revenue by platform: Network & AI Security $8.35B, Cortex $1.92B, Idira $1.26B pro forma.
2. Nearly $1bn of net new ARR includes a nine-figure one-off. NGS ARR went $8.13B to $9.10B — $970M of net new against the $770–820M the guide implied — and the CFO said it carries a nine-figure benefit from one migrating customer.
3. Fiscal 2027 needs $2.0bn of net new ARR, 40% of it in the first half. The $11.075–11.175B guide implies $1.98–2.08B; with 60–61% guided into the second half, the first two quarters average about $400M against the $970M just printed.
4. The platform guides do not add up to the revenue guide. Network & AI up low double digits, Cortex about 30% and Idira about $1.5B sum to roughly $13.2–13.5B against a $14.10–14.20B total — $0.6–1.0B unaccounted for.
5. Fiscal 2027 operating income grows about 24%; earnings per share grow 8–9%. The wedge is dilution: non-GAAP diluted shares were 764M in fiscal 2026 and are guided to 844–847M, up another 10–11%.

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