DailyIQ
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DailyIQ
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PANWPalo Alto Networks, Inc.

Earnings Release

Palo Alto Networks, Inc.'s latest earnings press release, filed Sep 1, 2026, scored line by line for tone, guidance and what changed since the prior release.

New outlook issued36 lines scoredFiled Sep 1, 2026SEC 8-K · Exhibit 99
Release Tone
71
UPBEAT
GuidanceNew outlook issuedWhat this release does to the company's outlook
Tone change▲ 1.6pointsvs the prior release (Jun 2, 2026)
Hedging language0.00per 100 words▼ 0.00 vs prior
New this quarter10of 36 linesWording that was not in the prior release

The lines that matter most

Ranked by how material, how strongly worded and how new each sentence is.

  1. 1

    "We delivered a strong Q4 to close out the year, adding nearly $1 billion of Net New NGS ARR in a single quarter," said Nikesh Arora, chairman and chief executive officer of Palo Alto Networks.

    New this quarter
  2. 2

    Remaining performance obligations grew 34% year over year to $21.2 billion.

  3. 3

    Adjusted free cash flow for fiscal fourth quarter 2026 was $1.3 billion, compared with adjusted free cash flow of $954 million for the fiscal fourth quarter 2025.

  4. 4

    "Our profitable growth framework continues to scale effectively, reinforcing our confidence in achieving 40% adjusted free cash flow margin in FY28."

    New this quarter
  5. 5

    Remaining performance obligations of $20.8 billion to $20.9 billion, representing year-over-year growth of 34% to 35%.

  6. 6

    Remaining performance obligations of $25.2 billion to $25.4 billion, representing year-over-year growth of 19% to 20%.

  7. 7

    Net cash provided by operating activities for the fiscal fourth quarter 2026 was $1.4 billion, compared with net cash provided by operating activities of $1.0 billion for the fiscal fourth quarter 2025.

  8. 8

    Total revenue for the fiscal fourth quarter 2026 grew 34% year over year to $3.41 billion.

Release by release

Tone and guidance for the last 2 earnings releases.

  1. Sep 1, 2026New outlook issued71.1+1.6
  2. Jun 2, 2026New outlook issued69.5

Bar length: tone on a 50–77 scale.

The release, annotated

1Highlight rankPositive toneNeutralNegative toneDimmed text: low materiality
Management commentary
1"We delivered a strong Q4 to close out the year, adding nearly $1 billion of Net New NGS ARR in a single quarter," said Nikesh Arora, chairman and chief executive officer of Palo Alto Networks.
"The latest advancements in AI are elevating cybersecurity to the top of the CIO priority list, and will serve as durable tailwinds as we progress towards our $20 billion FY30 NGS ARR target."
"We delivered a strong finish to a record year and exceeded our guidance across the board, fueled by strength across our Network & AI Security, Cortex, and Idira platforms," said Dipak Golechha, chief financial officer of Palo Alto Networks.
4"Our profitable growth framework continues to scale effectively, reinforcing our confidence in achieving 40% adjusted free cash flow margin in FY28."
Results
Fourth Quarter Fiscal 2026 Financial Highlights
8Total revenue for the fiscal fourth quarter 2026 grew 34% year over year to $3.41 billion.
Next-Generation Security ARR for the fiscal fourth quarter 2026 grew 63% year over year to $9.10 billion.
2Remaining performance obligations grew 34% year over year to $21.2 billion.
GAAP operating income for the fiscal fourth quarter 2026 was $172 million, compared with GAAP operating income of $497 million for the fiscal fourth quarter 2025.
Non-GAAP operating income for the fiscal fourth quarter 2026 was $1.0 billion, compared with non-GAAP operating income of $768 million for the fiscal fourth quarter 2025.
A reconciliation between GAAP and non-GAAP information is contained in the tables below.
GAAP net loss for the fiscal fourth quarter 2026 was $282 million, or ($0.35) per diluted share, compared with GAAP net income of $254 million, or $0.36 per diluted share, for the fiscal fourth quarter 2025.
Non-GAAP net income for the fiscal fourth quarter 2026 was $853 million, or $1.02 per diluted share, compared with non-GAAP net income of $673 million, or $0.95 per diluted share, for the fiscal fourth quarter 2025.
A reconciliation between GAAP and non-GAAP information is contained in the tables below.
7Net cash provided by operating activities for the fiscal fourth quarter 2026 was $1.4 billion, compared with net cash provided by operating activities of $1.0 billion for the fiscal fourth quarter 2025.
3Adjusted free cash flow for fiscal fourth quarter 2026 was $1.3 billion, compared with adjusted free cash flow of $954 million for the fiscal fourth quarter 2025.
Fiscal year 2026 adjusted free cash flow margin was 38.4%.
A reconciliation between GAAP and non-GAAP information is contained in the tables below.
Corporate events
Acquisition of Console
Palo Alto Networks has acquired Console, an AI-native platform that enables agentic workflows across enterprise operations.
Console will expand the role of our Cortex platform across the broader enterprise agentic transformation.
Outlook
Financial Outlook
For the fiscal first quarter 2027, we expect:
Next-Generation Security ARR of $9.54 billion to $9.56 billion, representing year-over-year growth of 63%.
5Remaining performance obligations of $20.8 billion to $20.9 billion, representing year-over-year growth of 34% to 35%.
Total revenue in the range of $3.300 billion to $3.310 billion, representing year-over-year growth of 33% to 34%.
Diluted non-GAAP net income per share in the range of $0.96 to $0.98, using 837 million to 844 million shares outstanding.
For the fiscal year 2027, we expect:
Next-Generation Security ARR of $11.075 billion to $11.175 billion, representing year-over-year growth of 22% to 23%.
6Remaining performance obligations of $25.2 billion to $25.4 billion, representing year-over-year growth of 19% to 20%.
Total revenue in the range of $14.10 billion to $14.20 billion, representing year-over-year growth of 23% to 24%.
Non-GAAP operating margin of 29.5%.
Diluted non-GAAP net income per share in the range of $4.16 to $4.19, using 844 million to 847 million shares outstanding.
Adjusted free cash flow margin to be 38.0%.
Corporate events
(1) Consists of a land purchase of $91 million.
(2) Consists of a one-time purchase of a corporate asset which was paid through July 2026.
76 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.

How this is scored

  • Source: the press release Palo Alto Networks, Inc. filed with the SEC as Exhibit 99 to Form 8-K (Item 2.02). Financial statements and boilerplate are set aside.
  • Tone: a financial sentiment model scores each sentence 0 to 100; the release score weights sentences by how material they are.
  • Materiality and guidance: a classifier judges whether each sentence is specific information, and what the release does to the outlook.
  • New this quarter: wording that does not appear in the prior release.
  • Hedging: uncertainty words (may, could, approximately, headwinds and similar) per 100 words of narrative.

These scores describe the release's language. They are not a forecast or a recommendation. Read the original filing

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