Palo Alto Networks (PANW) Company Report

Revenue of $2.59 B, up 15% year-over-year
Next-Gen Security ARR of $6.33 B, up 33% year-over-year
Remaining Performance Obligation (RPO) reached $16.0 B, up 23% year-over-year
Non-GAAP operating margin of 30.3% (+190 bps y/y) and non-GAAP EPS of $1.03, up 27% y/y

Feb 17, 2026, 9:30 PM

Presentation

Palo Alto Networks reports Q2 2026 results

PANW

Earnings

Guidance Update

M&A

Strong subscription growth: Next-Generation Security ARR grew 33% to $6.33 B (28% organic) and total revenue rose 15% to $2.59 B in Q2 FY2026.
Robust profitability and cash flow: Non-GAAP operating margin expanded 190 bps to 30.3%, non-GAAP EPS was $1.03, and Q2 free cash flow reached $502 M.
Strategic M&A acceleration: Closed Chronosphere (adding ~$200 M ARR) and CyberArk, with combined cash outlays of $4.9 B, strengthening observability and identity security offerings.
Product momentum: SASE ARR surpassed $1.5 B (+40% YoY) and Cortex XIM ARR exceeded $500 M, while Prisma AIRS scaled to 100+ customers.
Upbeat guidance: Q3 NGS ARR is guided to $7.94–7.96 B (+56%) with revenue of $2.941–2.945 B, and full-year FY2026 NGS ARR is forecast at $8.52–8.62 B (+53–54%).

Feb 17, 2026, 9:30 PM

Transcript

Palo Alto Networks reports strong Q2 2026 earnings and strategic M&A progress

PANW

Earnings

M&A

Revenue Acceleration/Inflection

Palo Alto delivered NGSRR growth of 28%, 15% revenue increase (ex-Chronosphere), 30.3% operating margin, EPS of $1.03, and Q2 free cash flow of $502 million.
SASE ARR surpassed $1.5 billion (≈40% YoY growth) and Prisma Browser reached over 1,500 customers; Cortex XIM ARR topped $500 million with 600+ customers.
Closed Chronosphere (≈$200 million ARR) and CyberArk acquisitions, expanding into observability and identity security, with integration plans already in motion.
Q3 guidance: NGS ARR of $7.94 billion–$7.96 billion (+56%), revenue of $2.941 billion–$2.945 billion (+28–29%); FY 2026 revenue of $11.28 billion–$11.31 billion (+22–23%).

Feb 17, 2026, 9:30 PM

Transcript

Palo Alto Networks reports Q2 2026 results

PANW

Earnings

M&A

Palo Alto Networks delivered 15% revenue growth to $2.59 billion and Next-Generation Security ARR up 33% to $6.33 billion (28% organic) in Q2 FY26.
Operating margin expanded to 30.3%, marking a third consecutive quarter above 30%, with diluted non-GAAP EPS of $1.03 and Q2 adjusted free cash flow of $502 million.
Platformization momentum continued with 110 net new platformizations in Q2 (total ~1,550, +35%), Prisma AIRS exceeding 100 customers, and 200 customers deploying Cortex AgentiX for autonomous response.
Completed acquisitions of Chronosphere (adds ~$200 million ARR) and CyberArk, and announced intent to acquire Koi to bolster observability, identity security, and AI-driven endpoint protection.

Feb 17, 2026, 9:30 PM

Transcript

Palo Alto Networks reports Q2 2026 results

PANW

Earnings

Guidance Update

Total revenue for fiscal Q2 2026 was $2.6 billion, up 15% year-over-year.
Next-Generation Security ARR grew 33% to $6.3 billion; Remaining performance obligation rose 23% to $16.0 billion.
GAAP net income was $432 million (EPS $0.61); Non-GAAP net income was $732 million (EPS $1.03).
Q3 2026 guidance: Total revenue of $2.941 billion–$2.945 billion (up 28–29%), Next-Gen Security ARR of $7.94 billion–$7.96 billion (up 56%), and Non-GAAP EPS of $0.78–$0.80.

Feb 17, 2026, 9:14 PM

8-K

Palo Alto Networks reports fiscal Q2 2026 results

PANW

Earnings

Guidance Update

Revenue grew 15% year-over-year to $2.6 billion in fiscal Q2 2026, up from $2.3 billion in Q2 2025.
GAAP net income was $432 million (EPS $0.61) and non-GAAP net income was $732 million (EPS $1.03) in Q2 2026.
Next-Generation Security ARR increased 33% to $6.3 billion, and remaining performance obligation rose 23% to $16.0 billion.
Fiscal Q3 2026 guidance includes Next-Gen Security ARR of $7.94 billion–$7.96 billion, total revenue of $2.941 billion–$2.945 billion, and non-GAAP EPS of $0.78–$0.80.

Feb 17, 2026, 9:05 PM

Press Release

Palo Alto Networks introduces MSIAM 2.0 managed SOC service

PANW

Product Launch

MSIAM 2.0 integrates AI-driven Cortex XSIAM with 24/7 expert monitoring to enhance cyber resilience outcomes
Offers a 250-hour Breach Response Guarantee, providing elite incident response to limit recovery costs
Delivers immediate SOC maturity and supports third-party EDR for seamless integration and future consolidation on Cortex XDR
Available now through Palo Alto Networks and its ecosystem of partners

Feb 17, 2026, 11:00 AM

Press Release

Palo Alto Networks completes CyberArk acquisition

PANW

M&A

Palo Alto Networks announced completion of its acquisition of CyberArk, positioning Identity Security as a core pillar of its platformization strategy to secure every identity—human, machine, and agentic—across enterprises.
Under the terms of the transaction, CyberArk shareholders receive $45.00 in cash plus 2.2005 shares of Palo Alto Networks common stock per ordinary share.
CyberArk’s Identity Security solutions will remain available as a standalone platform while integration into Palo Alto Networks’ security ecosystem is underway with no disruption for existing customers.
Palo Alto Networks intends to pursue a secondary listing on the Tel Aviv Stock Exchange under the ticker “CYBR” to honor CyberArk’s heritage and reinforce its global strategy.

Feb 11, 2026, 1:18 PM

8-K

Palo Alto Networks completes acquisition of CyberArk

PANW

M&A

New Projects/Investments

Delisting/Listing Issues

Palo Alto Networks has completed its acquisition of CyberArk, integrating the CyberArk Identity Security Platform to secure human, machine, and agentic identities as a core pillar of its platform strategy.
Under the transaction terms, CyberArk shareholders will receive $45.00 in cash plus 2.2005 shares of Palo Alto Networks common stock per CyberArk share.
Palo Alto Networks plans to dual-list on the Tel Aviv Stock Exchange under the "CYBR" ticker, positioning it as the largest company by market capitalization on TASE.
CyberArk's solutions will remain available standalone while integration into PANW's ecosystem begins, with no expected customer disruption.

Feb 11, 2026, 12:00 PM

Press Release

Palo Alto Networks completes Chronosphere acquisition

PANW

M&A

On January 29, 2026, Palo Alto Networks closed its merger with Chronosphere, making Chronosphere a wholly owned subsidiary under Merger Sub.
Chronosphere, recognized as a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms, brings deep, real-time visibility into cloud-native and AI-driven environments.
The companies will integrate Cortex AgentiX with Chronosphere’s observability platform to deploy AI agents that automatically detect and remediate security and IT issues.
Chronosphere’s Telemetry Pipeline can filter low-value noise to cut data volumes by 30% and operates with 20× less infrastructure than legacy solutions, reducing data costs for customers.
Chronosphere co-founder and CEO Martin Mao joins Palo Alto Networks as SVP, GM Observability to drive the combined observability and security strategy.