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Jan 31
Palo Alto Networks Q2 2026 Earnings Report
Palo Alto Networks reported strong revenue growth and expanding profitability in the second quarter, driven by accelerating Next-Generation Security ARR.
Key Takeaways
Palo Alto Networks delivered fiscal Q2 2026 revenue of $2594000000, up 15% year over year, with GAAP net income of $432000000 and non-GAAP EPS of $1.03. Next-Generation Security ARR grew to $6300000000 and remaining performance obligation reached $16000000000, reflecting strong platform and AI-driven security adoption.
Revenue increased 15% year over year to $2594000000.
GAAP net income rose to $432000000 with diluted EPS of $0.61.
Non-GAAP diluted EPS reached $1.03.
Next-Generation Security ARR grew 33% to $6300000000.
Revenue by Segment
Forward Guidance
For fiscal Q3 2026, the company expects revenue between $2941000000 and $2945000000 and non-GAAP EPS between $0.78 and $0.80. For fiscal year 2026, revenue is projected between $11280000000 and $11310000000 with non-GAAP EPS between $3.65 and $3.70.
Positive Outlook
- Q3 revenue guidance of $2941000000 to $2945000000.
- Q3 Next-Generation Security ARR expected to reach up to $7960000000.
- FY2026 revenue guidance of up to $11310000000.
- FY2026 non-GAAP operating margin expected up to 29.0%.
- FY2026 non-GAAP EPS guidance up to $3.70.
Challenges Ahead
- Guidance excludes GAAP operating margin details.
- Non-GAAP guidance excludes share-based compensation and acquisition costs.
- Exposure to integration risks from recent acquisitions.
- Macroeconomic and geopolitical uncertainties remain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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