Palo Alto Networks delivers strong Q4, sets outlook

Palo Alto reported a strong fourth quarter and 34% revenue growth powered by its next-generation security products. Separately, Palo Alto Networks said it will acquire Console, an agentic AI cybersecurity company.

The company reported a fourth quarter net loss of $282 million, or 35 cents a share, on revenue of $3.41 billion, up 34% from a year ago. Non-GAAP earnings were $1.02 cents a share.

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Wall Street was expecting non-GAAP earnings of 98 cents a share on revenue of $3.35 billion.

CEO Nikesh Arora said, "the latest advancements in AI are elevating cybersecurity to the top of the CIO priority list."

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• Claude Mythos and the New Cybersecurity Operating Model

By the numbers:

• Next-generation security annual recurring revenue in the fourth quarter was $9.1 billion, up 63% from a year ago.
• Remaining performance obligations in the second quarter were $21.2 billion.
• Subscription revenue in the fourth quarter was $2.67 billion and product revenue was $738 million.
• For fiscal 2026, Palo Alto Networks reported revenue of $11.48 billion and net income of $307 million.

As for the outlook, Palo Alto Networks projected revenue between $3.3 billion and $3.31 billion with non-GAAP earnings of 96 cents a share to 98 cents a share. For fiscal 2027, Palo Alto Networks projected revenue between $14.1 billion and $14.2 billion with non-GAAP earnings of $4.16 a share to $4.19 a share.

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