Palo Alto Networks Inc (NASDAQ:PANW) posted financial results for the third quarter of fiscal 2026 after the closing bell on Tuesday. Here’s a rundown of the cybersecurity company’s report.
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Palo Alto Q3 Highlights
Palo Alto reported third-quarter revenue of approximately $3 billion, beating analyst estimates of $2.94 billion. The company reported adjusted earnings of 85 cents per share for the quarter, beating analyst estimates of 80 cents per share, according to Benzinga Pro.
Total revenue was up 31% year-over-year and remaining performance obligations grew 36% year-over-year to $18.4 billion. The company said next-generation security annual recurring revenue increased 60% year-over-year to $8.1 billion.
Palo Alto generated $910 million in adjusted free cash flow during the quarter and exited the period with approximately $2.36 billion in cash and cash equivalents.
“Q3 was a standout quarter for Palo Alto Networks, with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.
“The latest advancements at the AI frontier have increased the level of urgency around cybersecurity and redefined the shape of the industry for the coming years.”
What’s Next For Palo Alto?
Palo Alto expects fourth-quarter revenue to be in the range of $3.35 billion to $3.36 billion, versus estimates of $3.28 billion. The cybersecurity company anticipates fourth-quarter adjusted earnings between 96 cents and 98 cents per share, versus estimates of 94 cents per share.
Palo Alto raised its full-year revenue outlook from a range of $11.28 billion to $11.31 billion to a new range of $11.42 billion to $11.43 billion, versus estimates of $11.30 billion. The company also lifted its full-year adjusted earnings outlook from a range of $3.65 to $3.70 per share to a new range of $3.77 to $3.79 per share, versus estimates of $3.69 per share.
Executives from Palo Alto will further discuss the quarter on an earnings call starting at 4:30 p.m. ET.
PANW Shares Pop After The Bell
PANW Price Action: Palo Alto shares were up 11.03% in after-hours, trading at $329.94 at the time of publication on Tuesday, according to Benzinga Pro.
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