Palo Alto Networks reported second quarter (Q2'26) revenue of USD 2.59 billion, up 15% year-on-year. Product revenue for the quarter reached USD 514 million. Diluted earnings per share $(EPS)$ on a non-GAAP basis was USD 1.03, rising 27%, while GAAP diluted EPS was USD 0.61. Non-GAAP operating income for the quarter totaled USD 785 million, with a non-GAAP operating margin of 30.3%. Adjusted free cash flow (non-GAAP) was USD 502 million. The company’s Next-Generation Security annualized recurring revenue $(ARR)$ stood at USD 6.33 billion, a 33% increase, and remaining performance obligation (RPO) reached USD 16.0 billion, up 23%. During the quarter, Palo Alto Networks focused on operational excellence and integration following the proposed acquisitions of CyberArk and Chronosphere, aiming to leverage combined scale and harmonize global systems. The company reaffirmed its targets for adjusted free cash flow margin, expecting 37% for fiscal years 2026 and 2027, and 40% for fiscal year 2028.

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