Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q _____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-35594 PALO ALTO NETWORKS, INC. (Exact name of registrant as spec ...

Core Insights - The cybersecurity company is positioned to benefit from the emergence of new risks associated with artificial intelligence [1] Group 1 - The company highlights that AI is creating "new classes of risks" which could lead to increased demand for cybersecurity solutions [1]

Core Insights - Palo Alto Networks (PANW) reported revenue of $2.59 billion for the quarter ended January 2026, reflecting a year-over-year increase of 14.9% [1] - The company's earnings per share (EPS) was $1.03, up from $0.81 in the same quarter last year, exceeding the consensus EPS estimate of $0.93 by 10.67% [1] - The reported revenue slightly surpassed the Zacks Consensus Estimate of $2.58 billion, resulting in a revenue surprise of +0.5% [1] Financial Performance Metrics - Remaining Performance Obligation (RPO) stood at $16.00 billion, exceeding the average estimate of $15.81 billion from seven analysts [4] - Product revenue was reported at $514 million, surpassing the average estimate of $493.76 million based on 13 analysts, marking a year-over-year increase of +22% [4] - Subscription and support revenue reached $2.08 billion, slightly below the average estimate of $2.09 billion, with a year-over-year growth of +13.3% [4] - Subscription revenue was $1.4 billion, close to the average estimate of $1.41 billion, reflecting a year-over-year increase of +13.9% [4] - Support revenue was $676 million, marginally below the average estimate of $677.57 million, with a year-over-year change of +12.2% [4] Profitability Metrics - Non-GAAP product gross profit was $402 million, exceeding the average estimate of $387.92 million from 10 analysts [4] - Non-GAAP subscription and support gross profit was reported at $1.57 billion, slightly below the average estimate of $1.59 billion [4] - GAAP product gross profit was $399 million, surpassing the average estimate of $386.91 million from two analysts [4] - GAAP subscription and support gross profit was $1.51 billion, compared to the average estimate of $1.54 billion from two analysts [4] Stock Performance - Over the past month, shares of Palo Alto Networks have returned -11%, while the Zacks S&P 500 composite has changed by -1.4% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

智通财经APP获悉，Palo Alto Networks(PANW.US)公布了好于预期的2026财年第二季度业绩，但由于对 第三季度及全年的盈利指引不及预期，截至发稿，这家网络安全公司周二美股盘后跌超8%。 财报显示，Palo Alto Networks Q2营收同比增长15%至25.9亿美元，好于分析师普遍预期的25.8亿美元。 其中，产品销售额为5.14亿美元，较上年同期的4.21亿美元增长22%;订阅及支持收入为20.80亿美元，较 上年同期的18.36亿美元增长13%。Non-GAAP净利润为7.32亿美元，较上年同期的5.66亿美元增长29%; 调整后每股收益为1.03美元，好于分析师普遍预期的0.94美元，上年同期为0.81美元。 Q2下一代安全年度经常性收入(ARR)同比增长33%，达到63亿美元。剩余履约义务同比增长23%，达到 160亿美元。 展望未来，Palo Alto Networks预计，2026财年第三季度营收为29.4亿至29.5亿美元，好于分析师普遍预 期的26亿美元;预计第三季度调整后每股收益为0.78至0.80美元，低于分析师普遍预期的0.92美元。对于 2026财年，该公 ...

Core Insights - Palo Alto Networks (PANW) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.93 per share, and showing an increase from $0.81 per share a year ago, resulting in an earnings surprise of +10.67% [1] - The company achieved revenues of $2.59 billion for the quarter ended January 2026, surpassing the Zacks Consensus Estimate by 0.50% and up from $2.26 billion year-over-year [2] Financial Performance - Over the last four quarters, Palo Alto has consistently surpassed consensus EPS estimates, achieving this four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $2.6 billion, and for the current fiscal year, it is $3.84 on revenues of $10.53 billion [7] Market Position and Outlook - Despite the positive earnings report, Palo Alto shares have declined approximately 9.4% since the beginning of the year, contrasting with the S&P 500's slight decline of 0.1% [3] - The Zacks Industry Rank indicates that the Security industry is currently in the bottom 16% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Estimate Revisions and Future Expectations - The trend of estimate revisions for Palo Alto was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Empirical research suggests a strong correlation between near-term stock movements and earnings estimate revisions, which investors can track [5]

Core Viewpoint - Palo Alto Networks has reduced its annual profit forecast due to increased costs from recent acquisitions aimed at enhancing AI capabilities, resulting in a 7% drop in shares during extended trading [1] Financial Performance - The company reported acquisition-related costs of $24 million in Q2, up from $10 million a year earlier [1] - Revenue for Q2 rose 15% to $2.59 billion, aligning with estimates [1] - Adjusted profit per share for Q2 was $1.03, surpassing estimates of 94 cents [1] Profit Forecast - The adjusted profit per share forecast for fiscal 2026 has been lowered to $3.65 to $3.70, down from the previous forecast of $3.80 to $3.90 [1] Revenue Forecast - Palo Alto raised its annual revenue forecast to between $11.28 billion and $11.31 billion, compared to earlier expectations of $10.50 billion to $10.54 billion [1] - The forecast for Q3 revenue is approximately $2.94 billion to $2.95 billion, exceeding analysts' average estimate of $2.60 billion [1] Acquisitions - The company announced the acquisition of Israeli cybersecurity startup Koi, following the purchase of CyberArk Software and Chronosphere [1] - The acquisitions are intended to expand the total addressable market and address AI-driven cyber threats [1]

Palo Alto Networks (NasdaqGS:PANW) Q2 2026 Earnings call February 17, 2026 04:30 PM ET Company ParticipantsAdam Borg - Managing DirectorAdam Tindle - Managing DirectorBrad Zelnick - Managing DirectorDipak Golechha - CFOGabriela Borges - Managing Director and Head of US Software Equity ResearchGregg Moskowitz - Managing DirectorHamza Fodderwala - SVP of Investor Relations and Strategic FinanceJohn DiFucci - Senior Managing DirectorJosh Tilton - Managing DirectorLee Klarich - Chief Product and Technology Offi ...

Financial Data and Key Metrics Changes - The company reported a strong Q2 with revenue growth of 15%, totaling $2.59 billion, and Next-Generation Security (NGS) ARR increased by 33% to $6.33 billion, with organic growth of 28% year-over-year [5][31][32] - The operating margin was 30.3%, marking the third consecutive quarter of 30%+ operating margins, reflecting a 190 basis point expansion year-over-year [37] - Diluted non-GAAP EPS reached $1.03, exceeding guidance, and adjusted free cash flow was $502 million, with a trailing 12-month adjusted free cash flow margin of 37.9% [37][38] Business Line Data and Key Metrics Changes - The SASE business surpassed $1.5 billion ARR, growing approximately 40% year-on-year, solidifying its position as the fastest-growing SASE provider [14] - Software Firewall ARR grew approximately 25%, driven by the need to secure dynamic multi-cloud environments [16] - XSIAM surpassed the $500 million ARR milestone, with over 600 customers, achieving mean time remediation of less than 10 minutes for over 60% of deployed customers [17] Market Data and Key Metrics Changes - The Americas region grew by 14%, EMEA by 17%, and JAPAC by 17%, indicating broad-based strength across all major markets [33] - The company reported a net retention rate of 119% among platformized customers, with low single-digit churn [9] Company Strategy and Development Direction - The company is focused on a platformization strategy, integrating various security solutions to address the evolving cybersecurity landscape, particularly with the rise of AI [5][6][10] - Recent acquisitions of CyberArk and Chronosphere are seen as pivotal for enhancing identity security and observability capabilities, with plans for rapid integration and innovation [25][24] - The company aims to become the largest identity security player, addressing the growing needs of identity to secure AI agents [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for cybersecurity solutions, particularly as enterprises begin to integrate AI into their workflows [6][50] - The shift towards AI is viewed as an opportunity for increased security adoption, with a focus on platformization and data harmonization [50] - The company anticipates continued growth in NGS ARR, projecting a range of $8.52 billion to $8.62 billion for the fiscal year 2026, reflecting a 53%-54% increase [43] Other Important Information - The company is preparing for the post-quantum era, addressing emerging threats and ensuring customers are equipped for future challenges [16] - The integration of Koi is expected to enhance endpoint security capabilities, particularly in relation to autonomous AI agents [22][23] Q&A Session Summary Question: Comparison of AI shift to cloud computing and M&A strategy - Management compared the current AI shift to the previous cloud transition, emphasizing the need for platformization and consolidation in security solutions [47][49] Question: Concerns about LLMs replacing SIEM tools - Management views LLMs as complementary to security capabilities, enhancing data classification and threat detection, but not a replacement for comprehensive security solutions [53][55] Question: Joint pipeline opportunities with CyberArk - Management highlighted the collaboration between CyberArk and Palo Alto Networks teams to pursue joint opportunities, with a focus on integrating capabilities and building a unified go-to-market strategy [60][62] Question: Strength in SASE business - Management noted that the acceleration in the SASE business is driven by customers seeking comprehensive solutions to address hybrid work environments and security needs [69][72] Question: Impact of AI adoption on network traffic - Management indicated that while AI adoption is increasing, it is still early to assess its full impact on network traffic, but expects growth as enterprises continue to adopt AI solutions [75][76]

Palo Alto Networks (NasdaqGS:PANW) Q2 2026 Earnings call February 17, 2026 04:30 PM ET Speaker5Good day, everyone, and welcome to Palo Alto Networks' fiscal second quarter 2026 earnings conference call. I am Hamza Fodderwala, Senior Vice President of Investor Relations and Strategic Finance. Please note that this call is being recorded today, Tuesday, February 17, 2026, at 1:30 P.M. Pacific Time. With me on today's call to discuss our fiscal second quarter results are Nikesh Arora, our Chairman and Chief Ex ...

Core Insights - Palo Alto Networks reported fiscal second-quarter results that exceeded Wall Street estimates, but shares fell 6% due to disappointing guidance for the upcoming quarter [1] - The company forecasted earnings for the fiscal third quarter between 78 cents and 80 cents, below the LSEG estimate of 92 cents [1] - Revenue is projected to be between $2.94 billion and $2.95 billion, surpassing the $2.60 billion estimate [1] Financial Performance - Revenue grew 15% year-over-year, reaching $2.59 billion compared to $2.3 billion a year ago [2] - Net income increased to $432 million, or 61 cents per share, up from $267 million, or 38 cents per share a year ago [2] - Earnings per share were reported at $1.03, excluding items, compared to the expected 94 cents [5] Strategic Acquisitions - The company is actively acquiring firms to enhance its cybersecurity capabilities, with over 20 acquisitions since CEO Nikesh Arora took over in 2018 [3] - Recently, Palo Alto completed its largest acquisition, paying $25 billion for CyberArk, and also acquired Chronosphere for over $3 billion [3] Market Trends and Performance Metrics - The company noted a trend towards platformization driven by AI, with customers looking to modernize their cybersecurity stacks [4] - Remaining performance obligations reached $16 billion, exceeding the StreetAccount estimate of $15.78 billion [4] - Annual recurring revenue rose 33% to $6.33 billion [4] - Palo Alto shares have declined 11% year-to-date [4]