Palo Alto Networks, Inc. · NASDAQ:PANW
Palo Alto Networks — Q3 2026 Earnings Presentation
30 slides from Palo Alto Networks's earnings presentation, Jun 2, 2026
Slide 1: Q3 Fiscal Year 2026 Earnings Call
Q3 Fiscal Year 2026 Earnings Call June 2, 2026 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical or current facts, including, without limitation, statements regarding the cybersecurity
Slide 3: © 2026 Palo Alto Networks, Inc. All rights reserved.
3 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 4: Q3'26 at a Glance: Accelerating Growth in our Organic Business
Q3’26 at a Glance: We Delivered Accelerating Growth in our Organic Business and Across the Overall Company Acceleration in $18.4B $8.13B $3.00B Total RPO NGS ARR¹ Total Revenue Organic Bookings & +36% y/y +60% y/y +31% y/y Net New NGS ARR +22% y/y, excl. $1.8B from CyberArk +28% y/y, excl. $1.63B fr
Slide 5: The Latest Frontier AI Models Are A Game Changer For Cybersecurity
The Latest Frontier AI Models like Mythos Are A Game Changer For Cybersecurity Frontier AI can now find and exploit vulnerabilities at a speed and scale never before possible, requiring AI based defense built into sensors (endpoints, firewalls, cloud, browsers) Securing known vulnerabilities is necess
Slide 6: Q3 Results Driven By Continued Momentum in Platformization
Our Q3 Results Were Driven By Continued Momentum in Platformization Platformizations1 excl. Identity & Observability Identity & Observability Platformizations ~2,280 ~2,160* 4K+ Platformizations Driving ~630 ~630 ~110 $20B NGS ARR by FY’30 ~610 Net New Platformizations, with ~20 Net New from Identit
Slide 7: Select Q3 Deals Show Our Platformization Strategy in Action
Select Q3 Deals Show Our Platformization Strategy in Action Leading Frontier AI Lab Fortune 500 Power Producer Customers¹ with >$5M NGS ARR >$200M ARR ~$80M Deal Leading frontier AI lab expanded with us for Leading U.S. electric utility powering the AI observability across its most demanding data ce
Slide 8: NetSec: AI Is Driving the Need for More Network Traffic Inspection
NetSec: AI Is Driving the Need for More Network Traffic Inspection – a Multi-Year Tailwind for our Largest Business Firewall: Securing the Growth in AI Traffic Across Hardware & SASE: We Continued to Gain Share & Remain the Fastest Growing Software Vendor at Scale TTM Firewall Bookings Growth (HW+SW), y
Slide 9: Spotlight: Prisma AIRS Has Rapidly Established Itself
Spotlight | Prisma AIRS Has Rapidly Established Itself As The Industry’s Leading AI Security Platform Major Platform Releases Since Launch Comprehensive AI Agent Security Platform Today Agent Artifact Scanning Prisma AIRS Launch Oct’25 Agent Red Teaming Agent Security Posture Management AI Model Sca
Slide 10: Cortex: XSIAM Is Becoming the Long Term Answer
Cortex: XSIAM is Becoming the Long Term Answer to Frontier Model Threats While AI Applications Are Driving Demand in Observability XSIAM: Unifying Security Data for the AI SOC Next-Gen Observability: Scaling with Growing AI Data & Infrastructure >$600M >$300M XSIAM ARR, Observability ARR, up ~100% y
Slide 11: CyberArk Performance Is Tracking Ahead of Plan
CyberArk Performance is Tracking Ahead of Plan in Our First Quarter Post Close Sustaining Strong ARR Growth Trajectory… ...And Delivering Ahead of Synergy Targets >$1.3B 27% y/y1 NGS ARR ARR Growth Synergy Targets 3-6 Driving Go-to Market Excellence2 months ahead of plan ~1k ~300 Cross-org engagemen
Slide 12: AI Is Reshaping Cybersecurity, and We Are Positioned to Lead It
AI is Reshaping Cybersecurity, and We Are Positioned to Lead It AI multiplies the traffic and machine activity we inspect in-line— a structural tailwind cementing Network Security, our largest business, as critical infrastructure Attackers now move at machine speed; human-speed tools can’t keep up. Re
Slide 13: © 2026 Palo Alto Networks, Inc. All rights reserved.
13 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 14: Q3'26 Top Line Results
Q3’26 Top Line Results 14 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 15: Q3'26 Operating Margin & Adj. Free Cash Flow Margin
Q3’26 Operating Margin & Adj. Free Cash Flow Margin Non-GAAP Operating Margin TTM Adj. Free Cash Flow Margin Non-GAAP Operating Margin TTM Adj Free Cash Flow Margin 15 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 16: Early M&A Execution Reinforces Confidence in Long Term Targets
Our Early M&A Execution Reinforces Confidence in Our Long Term Targets, Accelerating Our Timeline To Achieve 40% Free Cash Flow Margin Key Integration Initiatives Leveraging combined scale to drive improved unit pricing for cloud hosting on CyberArk Reaffirming Optimizing organizational structures to d
Slide 17: Q3'26 Metrics Summary
Q3’26 Metrics Summary Q3’26 Q3’26 Guidance (as of 2/17/26) Actual $2.941B - $2.945B $3.00B Total Revenue 28% - 29% y/y 31% y/y Product Revenue $594M $17.85B - $17.95B $18.4B Remaining Performance Obligation 32% - 33% y/y 36% y/y $7.94 - $7.96B $8.13B Next-Gen Security ARR 56% y/y 60% y/y Gross Margi
Slide 18: Raising FY'26 Guidance Across The Board
Raising FY’26 Guidance Across The Board Q4’26 FY’26 Guidance (as of 6/2/26) Guidance (as of 6/2/26) Next-Gen Security ARR $8.90B - $8.95B $8.90B - $8.95B 59% - 60% y/y 59% - 60% y/y Remaining Performance Obligation $20.9B - $21.0B $20.9B - $21.0B 32% - 33% y/y 32% - 33% y/y Total Revenue $3.345B - $
Slide 19: Q&A
Q&A © 2026 Palo Alto Networks, Inc. All rights reserved. 19
Slide 20: Appendix
Appendix © 2026 Palo Alto Networks, Inc. All rights reserved. 20
Slide 21: Modeling Points
Modeling Points ● FY’26 Product revenue y/y growth % in low-20s ● Q4’26 and FY’26 non-GAAP effective tax rate of 22% ● Q4’26 net interest and other income of $60M – $65M ● Q4’26 diluted shares outstanding 830 – 840 million ● FY’26 diluted shares outstanding 763 – 766 million 21 © 2026 Palo Alto Netwo
Slide 22: Comparison: PANW NGS ARR vs. Previous Idira ARR Definition
Comparison: Palo Alto Networks NGS ARR vs. Previous Idira ARR Definition PANW NGS ARR CYBR Previous Subscription Definition ARR Definition ARR is calculated as the total contract value ARR is calculated based on the annualized allocated to products/services that had value of the contracts (Bookings) on
Slide 23: GAAP to Non-GAAP Reconciliations – Revenue
GAAP to Non-GAAP Reconciliations – Revenue $ In millions Total revenue excluding CyberArk and Chronosphere (non-GAAP): Q325 Q326 Total revenue $2,289 $3,002 Less: total revenue from CyberArk and Chronosphere - 388 Total revenue excluding CyberArk and Chronosphere (non-GAAP) $2,289 $2,614 Fiscal year
Slide 24: GAAP to Non-GAAP Reconciliations – RPO
GAAP to Non-GAAP Reconciliations – Remaining Performance Obligation $ In billions Remaining performance obligation excluding CyberArk and Chronosphere (non-GAAP): Q325 Q326 Remaining performance obligation $13.5 $18.4 Less: remaining performance obligation from CyberArk and Chronosphere - 1.8 Remain
Slide 25: GAAP to Non-GAAP Reconciliations – Current RPO
GAAP to Non-GAAP Reconciliations – Current Remaining Performance Obligation $ In billions Current remaining performance obligation excluding CyberArk and Chronosphere (non-GAAP): Q225 Q325 Q226 Q326 Current remaining performance obligation $6.1 $6.2 $7.1 $8.3 Less: current remaining performance obli
Slide 26: GAAP to Non-GAAP Reconciliations – Gross Margin
GAAP to Non-GAAP Reconciliations – Gross Margin $ In millions Non-GAAP gross profit and gross margin: Q326 $ % GAAP gross profit and gross margin $2,028 67.6% Share-based compensation-related charges 59 1.9% Acquisition-related costs⁽¹⁾ 5 0.2% Amortization expense of acquired intangible assets 183 6.1
Slide 27: GAAP to Non-GAAP Reconciliations – Operating Margin
GAAP to Non-GAAP Reconciliations – Operating Margin $ In millions Non-GAAP operating income and operating TTM TTM Q325 Q425 Q126 Q226 Q326 margin: Q3'25 Q3'26 $ % $ % $ % $ % $ % $ % $ % GAAP operating income and operating margin $219 9.6% $497 19.6% $309 12.5% $397 15.3% ($183) -6.1% $984 11.1% $1,
Slide 28: GAAP to Non-GAAP Reconciliations – EPS
GAAP to Non-GAAP Reconciliations – EPS Non-GAAP net income per share, diluted: Q325 Q326 GAAP net income per share, diluted $0.37 ($0.22) Share-based compensation-related charges 0.52 0.64 Acquisition-related cost⁽¹⁾ 0.01 0.25 Amortization expense of acquired intangibles assets 0.06 0.35 Litigation-
Slide 29: GAAP to Non-GAAP Reconciliations – Adjusted FCF
GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow $ In millions TTM TTM TTM TTM TTM Free cash flow and adjusted free cash flow (non-GAAP): Q326 Q325 Q425 Q126 Q226 Q326 Net cash provided by operating activities $871 $3,208 $3,716 $3,977 $3,974 $4,217 Less: purchases of property, equipment, an
Slide 30: Thank You
Thank You © 2025 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.