The revenue beat and raised guidance dominate the EPS miss, which is driven by one-time acquisition costs from CyberArk integration. Watch for Q4 FY26 guidance midpoint of $3.35B revenue and $0.97 non-GAAP EPS — if CyberArk integration synergies materialize faster than modeled, upside to FY27 estimates is likely. The 38.5% TTM adjusted FCF margin supports the FY28 40% target, a key catalyst for multiple expansion.
Price Chart
Executive Summary
Palo Alto Networks reported fiscal Q3 2026 revenue of $3.0B (+31% YoY, including $388M from CyberArk/Chronosphere), beating the $3.35B consensus by 10.4%. However, non-GAAP EPS of $0.85 missed the $0.98 consensus by 13.3%, driven by $198M in acquisition-related costs and $280M in amortization from the CyberArk deal. Guidance was raised: FY26 revenue now $11.415B-$11.425B (vs prior $11.28B-$11.31B) and non-GAAP EPS $3.77-$3.79 (vs prior $3.65-$3.70), signaling confidence in integration and margin expansion.
Key Financial Metrics
Key Facts
- Q3 FY26 total revenue $3.002B, +31% YoY, vs consensus $3.35B (beat by 10.4%)
- Non-GAAP EPS $0.85 vs consensus $0.98 (miss by 13.3%) due to $198M acquisition costs and $280M amortization
- Next-Generation Security ARR $8.1B, +60% YoY (including $1.6B from CyberArk/Chronosphere)
- RPO $18.4B, +36% YoY (including $1.8B from acquisitions)
- FY26 revenue guidance raised to $11.415B-$11.425B (prior $11.28B-$11.31B), non-GAAP EPS raised to $3.77-$3.79 (prior $3.65-$3.70)
- Adjusted FCF margin 38.5% TTM, +430bps YoY; Q3 adjusted FCF $910M vs $578M YoY
- GAAP net loss ($177M) vs GAAP net income $262M YoY due to acquisition-related charges
- Operating cash flow $871M, +39% YoY
Financial Impact
Revenue beat by ~$348M (10.4%) vs consensus; EPS miss of $0.13 (13.3%) vs consensus; FY26 guidance raised by $135M-$115M on revenue and $0.12-$0.09 on EPS
Risk Factors
- Integration risk from CyberArk and Chronosphere acquisitions — $21.9B goodwill on balance sheet
- GAAP net loss of ($177M) may concern credit-focused investors
- Competitive pressure from CrowdStrike, Microsoft, and Zscaler in AI security
- Dilution from 801M diluted shares (vs 707M YoY) due to acquisition-related equity issuance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001327567-26-000012 |
| Document: panw-20260602.htm | 0001327567-26-000012 |
| Document: 0001327567-26-000012-index-headers.html | 0001327567-26-000012 |
| Document: 0001327567-26-000012-index.html | 0001327567-26-000012 |
| Document: 0001327567-26-000012.txt | 0001327567-26-000012 |
| 8-K Data (Synthetic) | 0001327567-26-000012 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 17, 2026 15d ago | ANALYST-DOWNGRADE | $375.06 $389.92 | ▼ −3.96% | ▼ −3.28% | $405.01 (−7.99%) |
Sep 1, 2026 4w ago | Press Release | $328.19 $338.49 | ▲ +3.14% | ▲ +4.10% | $405.01 (+23.41%) |
Aug 19, 2026 6w ago | Press Release | $358.63 $339.31 | ▼ −5.39% | ▼ −5.00% | $405.01 (+12.93%) |
Jul 8, 2026 12w ago | Insider Cluster | $338.31 $353.99 | ▲ +4.63% | ▲ +4.77% | $405.01 (+19.72%) |
Jul 1, 2026 13w ago | Insider Cluster | $348.06 $338.31 | ▼ −2.80% | ▼ −3.73% | $405.01 (+16.36%) |
Jul 1, 2026 13w ago | Insider Cluster | $348.06 $338.31 | ▼ −2.80% | ▼ −3.73% | $405.01 (+16.36%) |
Jul 1, 2026 13w ago | Insider Cluster | $348.06 $338.31 | ▼ −2.80% | ▼ −3.73% | $405.01 (+16.36%) |
Jun 16, 2026 15w ago | Insider Cluster | $282.13 $285.26 | ▲ +1.11% | ▲ +2.15% | $405.01 (+43.55%) |
Jun 2, 2026 17w ago | 8-K | $272.05 $279.62 | ▲ +2.78% | ▲ +2.21% | $405.01 (+48.87%) |
May 27, 2026 18w ago | Insider Cluster | $257.11 $278.71 | ▲ +8.40% | ▲ +8.08% | $405.01 (+57.52%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access