NGS ARR

Q4 2025

$5.52B to $5.57B "

N/A

no current guidance

RPO

Q4 2025

$15.2B to $15.3B "

N/A

no current guidance

Revenue

Q4 2025

$2.49B to $2.51B "

N/A

no current guidance

Diluted Non-GAAP EPS

Q4 2025

$0.87 to $0.89 "

N/A

no current guidance

NGS ARR

Q1 2026

N/A

$5.82B to $5.84B "

no prior guidance

RPO

Q1 2026

N/A

$15.4B to $15.5B "

no prior guidance

Revenue

Q1 2026

N/A

$2.45B to $2.47B "

no prior guidance

Diluted Non-GAAP EPS

Q1 2026

N/A

$0.88 to $0.90 "

no prior guidance

Platformization

Emphasized in Q2 earnings with significant progress in unifying various security products (eg, 75 new platformizations and integration benefits) " " " and in Q3 to drive larger deals and next-generation ARR growth. " "

Q4 discussions highlight a record number of platformization deals, strong customer retention (120% retention), and ambitious goals to more than double platform deals over five years, underscoring a deep strategic partnership model. " " "

Consistently positive trajectory with expanding strategic commitments and larger deal sizes.

Consolidation

Addressed in Q2 and Q3 as part of the platformization strategy with benefits such as reduced product fragmentation and streamlined security operations. " " "

Q4 commentary reiterates consolidation as a key focus—accelerated by AI adoption—with examples including integrating identity management to mitigate fragmentation. "

Stable and reinforcing the platformization strategy as consolidation remains an integral and evolving part of the security solution.

Hardware-to-Software Transition

In Q2, highlighted as a 21% shift with software firewalls driving growth; in Q3, noted that software firewalls were gaining traction due to AI acceleration while hardware still grew modestly (5–8%). " "

Q4 call stressed that 56% of product revenue comes from software form factors, with software firewalls driving rapid bookings and deployment flexibility, underscoring a faster, more pronounced move away from hardware. " " " "

Accelerating shift toward software with stronger revenue emphasis, deployment ease, and enhanced cloud security integration compared to earlier quarters.

Cloud Transformation and XSIAM

Q2 discussions focused on resurgence in cloud transformation projects with integrated security platforms and significant early milestones for XSIAM (eg, $1B in cumulative XSIAM bookings). " " In Q3, the narrative evolved to emphasize cloud detection, runtime security, and robust ARR growth for XSIAM. " "

Q4 emphasizes enhanced cloud runtime protection via the launch of Cortex Cloud and positions XSIAM as the fastest-growing product with 400 customers and high average ARR, reflecting its emerging role as an autonomous SOC platform. " "

Maturing and scaling steadily as cloud security and AI-driven SOC integration become central to customer strategies.

AI Adoption and Product Innovation

In Q2, AI was integrated into operations (eg, AI-based runtime security, internal copilot, automation); Q3 raised the strategic necessity of AI for modernizing legacy security and for new product innovations like advanced SIEM and email security. " " "

Q4 emphasizes rapid adoption of Generative AI—citing an 890% increase in Gen AI traffic—and showcases new innovations such as Prisma AIRS, PANOS 12.1 Orion appliances, and integrated AI security in secure browser deals. " " "

Upward momentum as AI becomes a core driver for product enhancements and disruptive innovations across the portfolio.

Emerging Secure Browser Demand

Q2 saw strong demand with one-third of new Prisma Access seats allocated to the secure browser and notable growth in bookings; Q3 highlighted a 10x growth in license seats and a healthy pipeline as the browser evolved into a critical SASE component. " " "

Q4 reports doubling of cumulative secure browser seat counts to over 6,000,000 licenses with large strategic deals (eg, over 80,000 seats for a US pharmaceutical company), reinforcing the browser’s role as the new operating system for AI and cloud apps. " " "

Continued surge with the secure browser becoming a vital element of the SASE stack and a strategic growth driver in response to increasing cloud and AI adoption.

Integration Challenges

Q2 earnings explicitly mentioned challenges unifying legacy offerings and fragmented security solutions—highlighting the need for platformization to reduce integration gaps. " " " Q3 did not discuss this topic.

Q4 did not mention integration challenges at all, suggesting these issues may have been mitigated or deprioritized in the current narrative [N/A].

Not currently addressed, possibly indicating that past integration challenges have been resolved or are no longer a major focus.

Market, Competitive, and Geopolitical Uncertainties

Q2 noted a robust cybersecurity market with stable demand and minor geopolitical considerations tied to international deals. " " " Q3 included temporary geopolitical tensions (eg, supply chain disruptions in April) and highlighted the competitive disruption by AI-driven solutions. " "

Q4 portrays a stable macro environment with no significant geopolitical uncertainties; competitive positioning remains strong through innovation and platformization, with leadership confident about market stability. " "

Stabilizing environment with earlier temporary geopolitical and competitive concerns easing in Q4, while strategic differentiation continues to drive confidence.

Operating Margin and ARR Growth Sustainability

Q2 discussions showcased margin expansion initiatives with operating expense leverage improvements and ARR growth driven by platformization, setting guidance at 28%–28.5% margins and strong NGS ARR progress; Q3 highlighted reaching a $5B NGS ARR milestone and consistent expense leverage. " " " " "

Q4 reported operating margins above 30% for the first time, with a 340 basis point improvement and strong ARR growth (32% YoY, with future guidance projecting sustained growth), attributed to scalable efficiencies and durable next-generation security products. " " "

Upward trend with continuous margin expansion and sustainable ARR growth, driven by efficiency improvements and an accelerating shift towards high-value, next-generation products.

Strategic Partnerships

Q2 emphasized the success of strategic partnerships—most notably with IBM and global integrators—which enabled large modernization deals and significant ARR increases. " " Q3 did not elaborate on this topic.

Q4 brought strategic partnerships to the forefront with record platformization deals and multiple high-value, cross-sector transactions (eg, $100M, $60M, $33M deals) validating the deep, strategic relationship with customers. " "

Enhanced focus in Q4, suggesting that strategic partnerships have become more mature, driving larger deals and deeper customer commitments compared to earlier periods.