Palo Alto Networks, Inc. · NASDAQ:PANW

Palo Alto Networks — Q4 2026 Earnings Presentation

32 slides from Palo Alto Networks's earnings presentation, Sep 1, 2026

  1. Slide 1: Q4 Fiscal Year 2026 Earnings Call

    Q4 Fiscal Year 2026 Earnings Call September 1, 2026 © 2026 Palo Alto Networks, Inc. All rights reserved.

  2. Slide 2: Safe Harbor

    Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical or current facts, including, without

  3. Slide 3: © 2026 Palo Alto Networks, Inc. All rights reserved.

    © 2026 Palo Alto Networks, Inc. All rights reserved.

  4. Slide 4: We Had a Strong Finish to a Transformative Year in FY'26

    We Had a Strong Finish to a Transformative Year in FY'26, With Accelerating Top-line Growth and Nearly $1B Net New NGS ARR Accelerating Proforma $21.2B $9.10B $3.41B Q4’26 Total RPO Q4’26 NGS ARR¹ Q4’26 Total Revenue Bookings & NGS ARR +34% y/y +63% y/y +34% y/y Growth Record Platformizations ~$970M

  5. Slide 5: Record Net New Platformizations in Q4 Keeps Us on Track Towards Long-Term Targets

    Record Net New Platformizations in Q4 Continues to Keep Us on Track Towards Our Long-Term Targets ~630 NetSec & Cortex Platformizations1 Identity & Observability Platformizations1 ~2,500 ~2,280 ~670 ~2,160* ~630 ~220 ~610 Record Net New Platformizations in Q4 ~1,830 On Track to Deliver ~1,400 ~150 N

  6. Slide 6: Our Largest Q4 Wins Show Platformization in Action

    Our Largest Q4 Wins Show Platformization in Action Telecommunications Leader Global Technology Services Customers¹ with $126M Deal $72M Deal >$5M NGS ARR Full NetSec Platformization led by SASE & NGFW, as customer Platformized on NetSec, Idira cross-sell and Cortex Cloud standardized network securit

  7. Slide 7: Three Major AI Inflections Are Accelerating the Evolution of Cybersecurity

    Three Major AI Inflections Are Accelerating the Evolution of Cybersecurity January: The Open Claw Catalyst The world is evolving from prompting LLMs to one where AI has agency. Autonomous agents will far outnumber humans - creating more traffic that must be inspected, data that must be observed, and cr

  8. Slide 8: NetSec: The AI Infrastructure Build Out and Rise in Agentic AI Traffic

    NetSec: The AI Infrastructure Build Out and the Rise in Agentic AI Traffic is a Multi-Year Tailwind for Our Largest Business Growth Accelerated Across Hardware and Software We Continue to Platformize the SASE Market Firewalls Total Firewall Bookings Growth (HW+SW), y/y SASE Agentic Traffic Competitive D

  9. Slide 9: Spotlight | Prisma AIRS Surpassed $100M ARR in Four Quarters

    Spotlight | Prisma AIRS Surpassed $100M ARR in Four Quarters, Driven by the Need to Secure the Rapid Rise in Enterprise AI Deployments Platform Evolution Since Launch Comprehensive AI Security Prisma AIRS ARR¹ Platform ~$120M Achieved in 1 year since General Availability Prisma AIRS Today Launch Age

  10. Slide 10: Cortex: Strong Growth in XSIAM and Observability in Q4

    Cortex: We Continued to See Strong Growth in XSIAM and Observability in Q4 XSIAM Scaling Rapidly as Machine-Speed Attacks Make AI ARR More Than Doubled in 2 Quarters, as the Leading SOC a Top Priority AI-Natives Adopt Chronosphere y y/ 0% x .5 >2 ~7 XSIAM ARR Observability ARR ~1K +45% $20M Deal 50%

  11. Slide 11: Idira: CyberArk is Accelerating Inside our Platform

    Idira: CyberArk is Accelerating Inside our Platform as the Demand For Securing Machine Identities Grows CyberArk ACV Growth, y/y Integration Efforts Are Yielding Early Success >400 Shared leads sourced between PANW and CYBR sales teams, up ~50% from May 2026¹ >200 CyberArk new logo wins from core PAN

  12. Slide 12: AI Tailwinds Driving Cybersecurity Demand Will Grow Stronger in FY27 and Beyond

    Looking Ahead, We Expect AI Tailwinds Driving Cybersecurity Demand Will Only Grow Stronger in FY27 and Beyond More capex will be deployed in the next 5 years than the last 25, creating a surge in infrastructure hardware to secure and more traffic to inspect. AI increases the need for real-time cyberse

  13. Slide 13: © 2026 Palo Alto Networks, Inc. All rights reserved.

    13 © 2026 Palo Alto Networks, Inc. All rights reserved.

  14. Slide 14: Record Top Line Results Across the Board in Q4'26

    Record Top Line Results Across the Board in Q4’26 Remaining Performance Obligations Next-Generation Security ARR Revenue ~$970M Record Net New ARR in Q4’26 Total RPO Total ARR Total Revenue Total RPO Growth y/y Total ARR Growth y/y Total Revenue Growth y/y 14 © 2026 Palo Alto Networks, Inc. All righ

  15. Slide 15: Revenue Momentum Was Driven Across Platforms

    Revenue Momentum Was Driven Across Platforms Network & AI Security Cortex Idira +17% y/y +25% y/y +21% y/y Proforma Growth $0.61B Reported Network & AI Security Revenue Cortex Revenue Idira Pro Forma Revenue1 Reported platform revenue included in appendix & Q4’26 Supplemental Financial Information.

  16. Slide 16: Q4'26 Operating Margin & Adj. Free Cash Flow Margin

    Q4’26 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 Reconciliations of historical non-GAAP measures can be found in the Appendix. 16 © 2026 Palo Alto Networks, Inc. All rights reserved.

  17. Slide 17: We Have Consistently Expanded Margins and Sustained Robust Free Cash Flow

    We Have Consistently Expanded Margins and Sustained Robust Free Cash Flow While Integrating Multiple Recent Acquisitions Scaling Profitably with Over 500 bps of Operating Margin Consistently Delivered 38%+ Adj. FCF Margins Since FY’23 Expansion Since FY’23 ~26% FY23-FY26 Op-Income CAGR ~18% ‘23-‘26 A

  18. Slide 18: Our Large and Growing TAM Garner Confidence in Achieving $20B NGS ARR by FY30

    Our Large and Growing TAM Garner Confidence in Achieving $20B NGS ARR by FY30 ~$340B $67B Idira (Identity Security) ~$200B Reaffirming $29B $180B (Identity Security) Cortex (SOC, Observability, Cloud) $20B $117B NGS ARR by FY’30 (SOC, Observability, Cloud) $19B $90B Network & AI Security $59B (Firewall

  19. Slide 19: Q4'26 Metrics Summary

    Q4’26 Metrics Summary Q4’26 Q4’26 Guidance (as of 6/2/26) Actual $3.345B - $3.355B $3.41B Total Revenue 32% y/y 34% y/y Product Revenue $738M $20.9B - $21.0B $21.2B Remaining Performance Obligations 32% - 33% y/y 34% y/y $8.90 - $8.95B $9.10B Next-Gen Security ARR 59% - 60% y/y 63% y/y Gross Margin

  20. Slide 20: Q1 & Fiscal Year 2027 Guidance

    Q1 & Fiscal Year 2027 Guidance Q1’27 FY’27 Guidance (as of 9/1/26) Guidance (as of 9/1/26) Next-Gen Security ARR $9.54B - $9.56B $11.075B - $11.175B 63% y/y 22% - 23% y/y Remaining Performance Obligations $20.8B - $20.9B $25.2B - $25.4B 34% - 35% y/y 19% - 20% y/y Total Revenue $3,300M - $3,310M $14

  21. Slide 21: Q&A

    Q&A © 2026 Palo Alto Networks, Inc. All rights reserved.

  22. Slide 22: Appendix

    Appendix © 2026 Palo Alto Networks, Inc. All rights reserved.

  23. Slide 23: Modeling Points

    Modeling Points ● Q1’27 and FY’27 non-GAAP effective tax rate of 22%1 ● Q1’27 net interest and other income of $75M – $80M ● Q1’27 diluted shares outstanding 837 – 844 million ● FY’27 diluted shares outstanding 844 – 847 million ● 2H FY’27 represents 60%-61% of full year Net New NGS ARR ● FY’27 Reven

  24. Slide 24: Revenue by Platform Definitions & Classifications

    Revenue by Platform Definitions & Classifications $ In millions Revenue by platform: Q126 Q226 Q326 Q426 FY'25 FY'26 Network & AI Security $1,904 $2,025 $2,094 $2,331 $7,131 $8,354 Cortex 422 431 481 586 1,539 1,920 Idira - - 278 336 - 614 Other 148 138 149 157 551 592 Total revenue $2,474 $2,594 $3,0

  25. Slide 25: GAAP to Non-GAAP Reconciliations – Gross Margin

    GAAP to Non-GAAP Reconciliations – Gross Margin $ In millions Non-GAAP gross profit and gross margin: Q425 Q426 FY'25 FY'26 $ % $ % $ % $ % GAAP gross profit and gross margin $1,857 73.2% $2,304 67.6% $6,770 73.4% $8,077 70.4% Share-based compensation-related charges 40 1.6% 59 1.6% 159 1.7% 197 1.6%

  26. Slide 26: GAAP to Non-GAAP Reconciliations – Operating Margin

    GAAP to Non-GAAP Reconciliations – Operating Margin $ In millions Non-GAAP operating income and operating margin: Q425 Q126 Q226 Q326 Q426 $ % $ % $ % $ % $ % GAAP operating income (loss) and operating margin $497 19.6% $309 12.5% $397 15.3% ($183) -6.1% $172 5.0% Share-based compensation-related ch

  27. Slide 27: GAAP to Non-GAAP Reconciliations – Operating Margin

    GAAP to Non-GAAP Reconciliations – Operating Margin $ In millions Non-GAAP operating income and operating margin: FY'23 FY'24 FY'25 FY'26 $ % $ % $ % $ % GAAP operating income (loss) and operating margin $387 5.6% $684 8.5% $1,243 13.5% $695 6.1% Share-based compensation-related charges 1,145 16.6%

  28. Slide 28: GAAP to Non-GAAP Reconciliations – EPS

    GAAP to Non-GAAP Reconciliations – EPS Non-GAAP net income per share, diluted: Q426 FY'25 FY'26 GAAP net income (loss) per share, diluted ($0.35) $1.60 $0.40 Share-based compensation-related charges 0.59 1.98 2.23 Acquisition-related costs⁽¹⁾ 0.08 (0.15) 0.39 Amortization expense of acquired intangi

  29. Slide 29: GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow

    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): Q425 Q426 Q425 Q126 Q226 Q326 Q426 Net cash provided by operating activities $1,021 $1,357 $3,716 $3,977 $3,974 $4,217 $4,553 Less: purchases of property,

  30. Slide 30: GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow

    GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow $ In millions Free cash flow and adjusted free cash flow (non-GAAP): FY'23 FY'24 FY'25 FY'26 Net cash provided by operating activities $2,777 $3,258 $3,716 $4,553 Less: purchases of property, equipment, and other assets 146 157 247 440 Free ca

  31. Slide 31: Comparison: Palo Alto Networks 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

  32. Slide 32: Thank You

    Thank You © 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

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