Q2 26 EPS
$1.03
BEAT +9.70%
Est. $0.94
Q2 26 Revenue
$2.59B
BEAT +0.44%
Est. $2.58B
vs S&P Since Q2 26
+17.3%
BEATING MARKET
PANW +22.8% vs S&P +5.5%
Market Reaction
Did PANW Beat Earnings? Q2 2026 Results
Palo Alto Networks closed out a strong fiscal second quarter of 2026, posting non-GAAP EPS of $1.03 against a consensus estimate of $0.94, a beat of 9.70%, while revenue of $2.59 billion grew 14.9% year over year and edged past the $2.58 billion Stre… Read more Palo Alto Networks closed out a strong fiscal second quarter of 2026, posting non-GAAP EPS of $1.03 against a consensus estimate of $0.94, a beat of 9.70%, while revenue of $2.59 billion grew 14.9% year over year and edged past the $2.58 billion Street estimate. The standout driver was the company's platformization strategy, which propelled Next-Generation Security ARR to $6.30 billion, up 33% year over year, as enterprises continued consolidating their cybersecurity spending onto Palo Alto's integrated platform. Non-GAAP operating margin expanded to 30.3%, the third consecutive quarter above that threshold, reflecting improving cost leverage across subscription and support revenue, which grew 13% to $2.08 billion. Looking ahead, management issued notably aggressive guidance, projecting full-year FY2026 revenue of $11.28–$11.31 billion, representing 22–23% growth, with the pending CyberArk acquisition expected to meaningfully accelerate Q3 growth toward 28–29%. Wells Fargo's recent initiation with an Overweight rating underscores broader analyst confidence in Palo Alto's consolidation-driven positioning within the cybersecurity market.
Key Takeaways
- • Platformization strategy acceleration driven by AI adoption
- • Next-Generation Security ARR grew 33% YoY to $6.3 billion
- • Remaining performance obligations grew 23% YoY to $16.0 billion
- • Third consecutive quarter of 30%+ non-GAAP operating margins
- • Strong product revenue growth of 22% YoY
PANW Forward Guidance & Outlook
For fiscal Q3 2026, Palo Alto Networks expects: NGS ARR of $7.94–$7.96 billion (56% YoY growth); RPO of $17.85–$17.95 billion (32–33% YoY growth); total revenue of $2.941–$2.945 billion (28–29% YoY growth); and diluted non-GAAP EPS of $0.78–$0.80. For full fiscal year 2026, the company expects: NGS ARR of $8.52–$8.62 billion (53–54% YoY growth); RPO of $20.2–$20.3 billion (28% YoY growth); total revenue of $11.28–$11.31 billion (22–23% YoY growth); non-GAAP operating margin of 28.5–29.0%; diluted non-GAAP EPS of $3.65–$3.70; and adjusted free cash flow margin of 37%.
PANW YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
PANW Revenue by Segment
With YoY comparisons, source: SEC Filings
“We saw continued strength in platformizations, a trend that is accelerating due to AI - customers are keen to both modernize and normalize their cybersecurity stack, aligning them to our approach. We also saw steady and strong adoption of AI security, which we expect will be a long term trend.”
— Nikesh Arora, Q2 2026 Earnings Press Release
PANW Earnings Trends
PANW vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PANW EPS Trend
Earnings per share: estimate vs actual
PANW Revenue Trend
Quarterly revenue: estimate vs actual
PANW Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.94 | $1.03 | +9.70% | $2.59B | +0.44% |
| Q1 26 BEAT | $0.89 | $0.93 | +4.35% | $2.47B | +0.50% |
| Q4 25 BEAT FY | $0.89 | $0.95 | +6.74% | $2.54B | — |
| FY Full Year | $3.27 | $3.34 | +2.03% | $9.22B | +0.39% |
| Q3 25 BEAT | $0.77 | $0.80 | +3.59% | $2.29B | +0.39% |
| Q1 25 BEAT | $1.47 | $1.56 | +5.79% | $2.14B | +0.85% |