PANW earnings analysis
What we found in PANW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Palo Alto Networks exceeded revenue and EPS estimates in Q3 FY2026, reporting $3.0 billion in revenue and EPS of $0.85. This was a strong year-over-year growth of 31%, highlighting robust demand for their cybersecurity solutions, particularly in the next-generation security segment. Management remains optimistic about future performance despite current macroeconomic headwinds.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue rose to $3.0 billion, up 31% year-over-year from $2.3 billion.
- Improved Non-GAAP EPS
- Reported EPS was $0.85, significantly exceeding the estimated $0.72.
- Cash Flow Generation
- Operating cash flow for the quarter was $3.196 billion, up from $2.695 billion last year.
- Segment Performance
- Subscription and support revenue accounted for 80.2% of total revenue, also growing 31% year-over-year.
- Acquisitions Driving Growth
- Recent acquisition of CyberArk contributed to the revenue growth and introduced new service lines.
- Robust Forward Guidance
- Management anticipates Q4 FY2026 revenue between $3.345 billion to $3.355 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Operating Loss
- Operating income decreased to $(183) million, marking a significant decline from $219 million in the previous year.
- High Debt Levels
- Following the CyberArk acquisition, there is an outstanding $1.1 billion in convertible notes due 2030.
- Integration Challenges
- Management highlighted risks associated with integrating CyberArk and Koi into existing operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.85
- Gross margin
- 67.6%
- Operating margin
- -6.1%
- Segment
- Next-Generation Security
- Segment
- Subscription and Support
What they said about what is next.
Guided revenue for Q4 FY2026 is expected to be $3.345 to $3.355 billion, with EPS guidance of $0.96 to $0.98.
The filing reads better than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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