Palo Alto Networks, Inc. · NASDAQ:PANW

Palo Alto Networks — Q1 2026 Earnings Presentation

31 slides from Palo Alto Networks's earnings presentation, Nov 19, 2025

1. Slide 1: Q1 Fiscal Year 2026 Earnings Call

   Q1 Fiscal Year 2026 Earnings Call November 19, 2025 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

2. 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

3. Slide 3: © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

   © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

4. Slide 4: Palo Alto Networks Q1 at a Glance: Strong Start to the Year

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Palo Alto Networks Q1 at a Glance: Strong Start to the Year Top-Line Metrics Q1’26 RPO Q1’26 NGS ARR1 Q1’26 Revenue Ahead $15.5B $5.85B $2.47B of Guidance +24% y/y +29% y/y +16% y/y Q1’26 Operating Margin (non-GAAP) Q1’26 EPS (non-GAAP) Continued Foc

5. Slide 5: Platformization Momentum: Landmark Q1 Wins

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Platformization Momentum: Landmark Q1 Wins Total NGS ARR1 For Customer $100M Deal Large US Telco The customer platformized on XSIAM, signing our largest deal ever for $39M Provider that product, and also purchased additional NetSec. This customer is

6. Slide 6: Continued Growth in SASE and Software Form Factors Drove NetSec in Q1

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Continued Growth in SASE and Software Form Factors Drove NetSec in Q1 SASE1 | Fastest Growing ARR at Secure Browser | The Future OS of Higher Software Mix Continues to Scale2 the AI-Driven Enterprise Drive Firewall Business Secure Browser +23% y/y SA

7. Slide 7: Prisma AIRS Continues to be the Most Comprehensive AI Security Platform

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Prisma AIRS Continues to be the Most Comprehensive AI Security Platform Prisma AIRS 2.0 New AI Partnerships & Integrations App AI Model Agent Security AI Agent AI Tools Security App / AI Posture Users LLM Management Agent MCP AI Red Teaming Vector DB

8. Slide 8: Quantum Readiness: The Time to Secure is Now

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Quantum Readiness: The Time to Secure is Now Why Now? New Innovations & Partnerships in Q1 Address an ~$10B¹ Quantum Security TAM Quantum expected to be commercialized by 20291, and nation-states may be sooner PANW Gen 5 Firewalls, Partnership to del

9. Slide 9: Cortex | Continued Strong XSIAM Momentum with AgentiX Launch

   Q1’26 Results NetSec SecOps CyberArk Chronosphere Cortex | Continued Strong XSIAM Momentum with AgentiX Launch Revolutionizing Security & IT Operations in Q1 Largest XSIAM deal ever, with $85M+ a Fortune 50 telco >60% have reduced MTTR¹ to <10 minutes, reduced of deployed from days or weeks XSIAM cu

10. Slide 10: CyberArk Acquisition on Track for Q3 Close; Reaffirming FY'28 FCF Margin Target

    Q1’26 Results NetSec SecOps CyberArk Chronosphere CyberArk Acquisition on Track for Q3 Close; Reaffirming FY’28 FCF Margin Target CyberArk shareholders overwhelmingly approved transaction on November 13th Reaffirming Our joint customers are excited for our future innovation efforts, including securing AI

11. Slide 11: © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

    11 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

12. Slide 12: Why Now? AI is Breaking the Current Observability Paradigm

    Q1’26 Results NetSec SecOps CyberArk Chronosphere Why Now? AI is Breaking the Current Observability Paradigm Current Observability stack is cost prohibitive, given the data Complexity of Customers’ Data & App Environment 1000’s of consumption requirements of the Microservices AI-era 1,000,000’s of C

13. Slide 13: Chronosphere Is The Next-Generation Observability Platform for Cloud & AI

    Q1’26 Results NetSec SecOps CyberArk Chronosphere Chronosphere Is The Next-Generation Observability Platform for Cloud & AI Leading Customer Base of AI-Native and Born-In-the-Cloud Companies ● Chronosphere serves the category-defining companies leading the AI revolution, including two of the top five

14. Slide 14: Unifying The Full Cybersecurity and Observability TAM

    Q1’26 Results NetSec SecOps CyberArk Chronosphere Unifying The Full Cybersecurity and Observability TAM ~$300B $32B (Observability) ~$200B $47B (Identity Security) $24B (Observability) $29B (Identity Security) $130B (SOC + Cloud) $93B (SOC + Cloud) $19B $80B $59B (Firewall + SASE) $19B (Firewall + S

15. Slide 15: Building on Strong Momentum and Core Innovation, We Are Expanding Our TAM with Two Category Leaders

    Building on Strong Momentum and Core Innovation, We Are Expanding Our TAM with Two Category Leaders Palo Alto Networks: Scaling Identity Security: Our Next Observability & Remediation: Multiple Billion Dollar Businesses Multi-Billion Dollar Opportunity Unifying Security & IT Scaling SASE & Cortex to

16. Slide 16: © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

    © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

17. Slide 17: Chronosphere Transaction Overview

    Chronosphere Q1 Results Guidance Chronosphere Transaction Overview ● $3.35 Billion, in cash and replacement awards, subject to adjustment Transaction ● Chronosphere co-founders, Martin Mao and Rob Skillington, and their employees will join Palo Alto Networks Considerations post-close Anticipated ● A

18. Slide 18: Q1'26 Top Line Results

    Chronosphere Q1 Results Guidance Q1’26 Top Line Results Revenue Remaining Performance Obligation Next-Generation Security ARR Revenue Revenue Growth y/y RPO RPO Growth y/y NGS ARR NGS ARR Growth y/y 18 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

19. Slide 19: Platformization Continued to Take Hold in Q1

    Chronosphere Q1 Results Guidance Platformization Continued to Take Hold in Q1 Total Platformizations1 ~1,450 Customers with >$5M NGS ARR ~1,400 ~60 ~1,250 Net New 169 | +54% y/y ~1,150 Platformizations ~1,100 in Q1 Customers with >$10M NGS ARR >30% y/y Growth in Total Platformizations 55 | +49% y/y

20. Slide 20: Q1'26 Metrics

    Chronosphere Q1 Results Guidance Q1’26 Metrics Q1’26 Q1’26 Guidance (as of 8/19/25) Actual Total Revenue $2.45B - $2.47B $2.47B 15% y/y 16% y/y Product Revenue $434M Remaining Performance Obligation $15.4B - $15.5B $15.5B 23% y/y 24% y/y Next-Gen Security ARR $5.82 - $5.84B $5.85B 29% y/y 29% y/y Gr

21. Slide 21: Continued Operating Leverage at Scale, Driving Industry Leading Free Cash Flow Margin

    Chronosphere Q1 Results Guidance Continued Operating Leverage at Scale, Driving Industry Leading Free Cash Flow Margin Non-GAAP Operating Margins Adjusted Free Cash Flow Margin (TTM) 21 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

22. Slide 22: Palo Alto Networks Standalone Q2 & Fiscal Year 2026 Guidance

    Chronosphere Q1 Results Guidance Palo Alto Networks Standalone Q2 & Fiscal Year 2026 Guidance Q2 FY’26 FY 2026 Guidance (as of 11/19/25) Guidance (as of 11/19/25) Next-Gen Security ARR $6.11B - $6.14B $7.00B - $7.10B 28% y/y 26% - 27% y/y Remaining Performance Obligation $15.75B - $15.85B $18.6B - $

23. Slide 23: Q&A

    Q&A © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information. 23

24. Slide 24: Appendix

    Appendix © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.

25. Slide 25: Modeling Points

    Modeling Points ● Q2’26 product revenue y/y growth approximately 17%-18% ● Q2’26 and FY’26 non-GAAP effective tax rate of 22% ● Q2’26 net interest and other income of $100M – $105M ● Q2’26 diluted shares outstanding 711 – 715 million ● FY’26 diluted shares outstanding 710 – 716 million ● Q2’26 capita

26. Slide 26: SASE Historical Active Customer Counts

    SASE Historical Active Customer Counts1 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 SASE Active Customers1 ~5,750 ~5,900 ~6,250 ~6,650 ~6,800 Growth y/y 22% 21% 23% 19% 18% 1 SASE Customers includes Prisma Access and Prisma SD-WAN, PANOS SD-WAN, SaaS Security, and DLP subscriptions. 26 © 2025 Palo Alto Networks,

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

    GAAP to Non-GAAP Reconciliations – Gross Margin $ In millions Non-GAAP gross profit and gross margin: Q126 $ % GAAP gross profit and gross margin $1,836 74.2% Share-based compensation-related charges 39 1.6% Amortization expense of acquired intangible assets 25 1.0% Litigation-related charges⁽¹⁾ 2 0.1

28. Slide 28: GAAP to Non-GAAP Reconciliations – Operating Margin

    GAAP to Non-GAAP Reconciliations – Operating Margin $ In millions Non-GAAP operating income and operating Q125 Q225 Q325 Q425 Q126 margin: $ % $ % $ % $ % $ % GAAP operating income and operating margin $286 13.4% $241 10.7% $219 9.6% $497 19.6% $309 12.5% Share-based compensation-related charges 315

29. Slide 29: GAAP to Non-GAAP Reconciliations – EPS

    GAAP to Non-GAAP Reconciliations – EPS Non-GAAP net income per share, diluted: Q125 Q126 GAAP net income per share, diluted $0.49 $0.47 Share-based compensation-related charges 0.46 0.53 Acquisition-related cost⁽¹⁾ 0.02 0.01 Amortization expense of acquired intangibles assets 0.06 0.06 Litigation-re

30. Slide 30: 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): Q125 Q126 Q125 Q225 Q325 Q425 Q126 Net cash provided by operating activities $1,510 $1,771 $3,242 $3,109 $3,208 $3,716 $3,977 Less: purchases of property,

31. Slide 31: Thank You

    Thank You paloaltonetworks.com © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information. 31

Palo Alto Networks — Q1 2026 Earnings Presentation on 6ix