Palo Alto Networks Reports Q4 & FY26 Financial Results, Announces Console Acquisition

Executive Summary

Palo Alto Networks, Inc. (NASDAQ: PANW) filed an 8-K under Item 2.02 detailing its financial results for the fourth quarter and full fiscal year ended July 31, 2026, alongside guidance for the first quarter and full year of fiscal 2027. The company also announced the acquisition of Console, an AI-native platform designed to enable agentic workflows.

Key Q4 FY2026 Financial Highlights

• Total Revenue: $3.41 billion, representing a 34% increase year-over-year compared to $2.54 billion in Q4 FY2025.
• Next-Generation Security (NGS) ARR: Reached $9.10 billion, climbing 63% year-over-year, driven by nearly $1 billion in net new NGS ARR added during the quarter.
• Remaining Performance Obligations (RPO): $21.2 billion, up 34% year-over-year.
• Operating Performance: GAAP operating income was $172 million compared to $497 million in Q4 FY2025. Non-GAAP operating income expanded to $1.0 billion from $768 million in Q4 FY2025.
• Net Income & EPS: GAAP net loss was $(282) million ($(0.35) per diluted share), compared to GAAP net income of $254 million ($0.36 per diluted share) in Q4 FY2025. Non-GAAP net income rose to $853 million ($1.02 per diluted share), up from $673 million ($0.95 per diluted share) in Q4 FY2025.
• Cash Flow: Net cash provided by operating activities totaled $1.4 billion, with adjusted free cash flow of $1.3 billion. Full-year FY2026 adjusted free cash flow margin was 38.4%.

Strategic Expansion: Acquisition of Console

Palo Alto Networks acquired Console, an AI-native platform enabling agentic workflows across enterprise operations. The acquisition is intended to integrate with and expand the reach of the Cortex platform as enterprise adoption of autonomous and agentic AI systems accelerates.

Financial Outlook

• Q1 FY2027:

  • NGS ARR: $9.54 billion to $9.56 billion (+63% YoY)
  • RPO: $20.8 billion to $20.9 billion (+34% to 35% YoY)
  • Revenue: $3.300 billion to $3.310 billion (+33% to 34% YoY)
  • Non-GAAP Diluted EPS: $0.96 to $0.98

• Full Year FY2027:

  • NGS ARR: $11.075 billion to $11.175 billion (+22% to 23% YoY)
  • RPO: $25.2 billion to $25.4 billion (+19% to 20% YoY)
  • Revenue: $14.10 billion to $14.20 billion (+23% to 24% YoY)
  • Non-GAAP Operating Margin: 29.5%
  • Non-GAAP Diluted EPS: $4.16 to $4.19
  • Adjusted Free Cash Flow Margin: ~38.0%