Palo Alto Networks Beats on $3 Billion Q3 Revenue, Raises FY2026 Outlook on AI Demand
Updated
Updated · CNBC · Jun 2
Palo Alto Networks Beats on $3 Billion Q3 Revenue, Raises FY2026 Outlook on AI Demand
3 articles · Updated · CNBC · Jun 2
$3 billion in fiscal Q3 revenue and 85 cents in adjusted EPS both topped estimates, with Palo Alto also guiding Q4 above consensus and lifting full-year targets.
31% revenue growth was backed by stronger AI-era demand, as management said advanced models are increasing cybersecurity needs and driving customer interest in Cortex, Agentic Endpoint Security and Prisma AIRS.
Recent deals also supported the case: CyberArk ARR rose 27% and is running three to six months ahead of synergy plans, while Chronosphere helped expand Palo Alto's observability push.
36% growth in remaining performance obligations and 60% growth in next-generation security ARR underscored momentum, even as the stock traded roughly flat after hours following a 61% gain this year.