Slide 1: Q2 Fiscal Year 2026 Earnings Call
Q2 Fiscal Year 2026 Earnings Call February 17, 2026 © 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
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. Proprietary and confidential information.
© 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
Slide 4: Palo Alto Networks Q2'26 at a Glance
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Palo Alto Networks Q2’26 at a Glance Durable Q2’26 RPO Q2’26 NGS ARR1 Q2’26 Revenue Top-Line $16.0B $6.33B $2.59B Growth +23% y/y +33% y/y +15% y/y Q2’26 Operating Margin (non-GAAP) Q2’26 EPS (non-GAAP) Consistent Execution
Slide 5: Platformization: Continued Momentum in Q2
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Platformization: Continued Momentum in Q2 Total Platformizations1 ~1,550 ~1,400 ~1,450 ~110 ~1,250 Net New ~1,150 Platformizations 119% NRR2 in Q2 Among Platformized customers with low-single digit churn ~35% y/y Growth in T
Slide 6: Platformization: Landmark Q2 Wins
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Platformization: Landmark Q2 Wins $50M+ Deal Global Auto Multi-platform customer, purchased $30M SASE to complement their Manufacturer existing Hardware/Software Firewall deployment and $20M XSIAM to Customers with >$5M NGS
Slide 7: Network Security | Strong Growth Across the Board in Q2
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Network Security | Strong Growth Across the Board in Q2 Continued SASE & Secure Browser Software Firewall Acceleration, Higher Software Mix Continues to Momentum Improving Hardware Demand Drive Product Revenue SASE ARR1, Sof
Slide 8: Cortex | XSIAM Reached New Milestones in Q2, Early Traction with AgentiX
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Cortex | XSIAM Reached New Milestones in Q2, Early Traction with AgentiX Active XSIAM Customers, >600 up >200% y/y AgentiX is the industry’s most secure platform to deploy agents across first & third party infrastructure for
Slide 9: Spotlight: Rapid AI Adoption is Driving Need for a Universal AI Security Platform
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Spotlight: Rapid AI Adoption is Driving Need for a Universal AI Security Platform Prisma AIRS Securing the Agentic Endpoint with Acquisition of Koi1 One of the fastest growing products in company history >100 Prisma AIRS cus
Slide 10: Chronosphere | Next-Gen Observability Built to Scale for the AI Era
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Chronosphere | Next-Gen Observability Built to Scale for the AI Era Latest Financial Highlights Complexity of Customers’ Data & App Environment 1000’s of Microservices $200M 1,000,000’s of Q2’26 (Jan) NGS ARR Containers 10’s
Slide 11: CyberArk | Ready to Execute on Integration Plans and Deliver Identity Security Platform
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead CyberArk | Ready to Execute on Integration Plans and Deliver Comprehensive Identity Security Platform First 6 Months Longer Term Beyond… Strengthen Foundation Expand Capabilities Win with Platformization ● Make Certificate Li
Slide 12: Looking Ahead: Core Innovation Engine Remains Strong, Expanding Opportunity
Q2’26 Results NetSec SecOps AI Security Chronosphere CyberArk Looking Ahead Looking Ahead: Core Innovation Engine Remains Strong, Expanding Opportunity with New Platforms Strength Across Core NetSec and …Complemented by Early Significant Opportunity in New Cortex Platforms… Momentum in New Innovation
Slide 13: © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
© 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
Slide 14: Q2'26 Top Line Results
Q2 Results Guidance Q2’26 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 14 © 2026 Palo Alto Networks, Inc. All rights reserved.
Slide 15: Q2'26 Metrics
Q2 Results Guidance Q2’26 Metrics Q2’26 Q2’26 Guidance (as of 11/19/25) Actual Total Revenue $2.57B - $2.59B $2.59B 14% - 15% y/y 15% y/y Product Revenue $514M Remaining Performance Obligation $15.75B - $15.85B $16.0B 21% - 22% y/y 23% y/y Next-Gen Security ARR $6.11 - $6.14B $6.33B 28% y/y 33% y/y
Slide 16: Focused on Operational Excellence & Driving Integration Value Post-Close
Q2 Results Guidance Focused on Operational Excellence & Driving Integration Value Post-Close Reaffirming prior targets: (including CyberArk and Chronosphere) Seamless onboarding process to ensure Day 1 collaboration 40% FY’28 Adj. Free Cash Flow Margin Leverage combined scale to drive operating levera
Slide 17: Palo Alto Networks Q3 & Fiscal Year 2026 Guidance
Q2 Results Guidance Palo Alto Networks Q3 & Fiscal Year 2026 Guidance Q3 FY’26 FY 2026 Guidance (as of 2/17/26) Guidance (as of 2/17/26) Next-Gen Security ARR $7.94B - $7.96B $8.52B - $8.62B 56% y/y 53% - 54% y/y Remaining Performance Obligation $17.85B - $17.95B $20.2B - $20.3B 32% - 33% y/y 28% y/
Slide 18: Q&A
Q&A © 2025 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
Slide 19: Appendix
Appendix © 2025 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information.
Slide 20: Modeling Points
Modeling Points ● Q3’26 product revenue y/y growth of 25% and full year y/y growth in low-20s (includes CyberArk impact) ● Q3’26 and FY’26 non-GAAP effective tax rate of 22% ● Q3’26 net interest and other income of $65M – $70M ● Q3’26 diluted shares outstanding 812 – 817 million ● FY’26 diluted share
Slide 21: Comparison: Palo Alto Networks NGS ARR vs. Previous CyberArk ARR Definition
Comparison: Palo Alto Networks NGS ARR vs. Previous CyberArk 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)
Slide 22: GAAP to Non-GAAP Reconciliations – Gross Margin
GAAP to Non-GAAP Reconciliations – Gross Margin $ In millions Non-GAAP gross profit and gross margin: Q226 $ % GAAP gross profit and gross margin $1,909 73.6% Share-based compensation-related charges 40 1.5% Amortization expense of acquired intangible assets 24 0.9% Litigation-related charges⁽¹⁾ 2 0.1
Slide 23: GAAP to Non-GAAP Reconciliations – Operating Margin
GAAP to Non-GAAP Reconciliations – Operating Margin $ In millions Non-GAAP operating income and operating margin: Q225 Q226 $ % $ % GAAP operating income and operating margin $241 10.6% $397 15.3% Share-based compensation-related charges 344 15.2% 321 12.4% Acquisition-related costs⁽¹⁾ 10 0.5% 24 0.
Slide 24: GAAP to Non-GAAP Reconciliations – EPS
GAAP to Non-GAAP Reconciliations – EPS Non-GAAP net income per share, diluted: Q225 Q226 GAAP net income per share, diluted $0.38 $0.61 Share-based compensation-related charges 0.50 0.45 Acquisition-related cost⁽¹⁾ 0.01 0.03 Amortization expense of acquired intangibles assets 0.06 0.05 Litigation-re
Slide 25: GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliations – Adjusted Free Cash Flow $ In millions TTM TTM Free cash flow and adjusted free cash flow (non-GAAP): Q226 Q225 Q226 Net cash provided by operating activities $554 $3,109 $3,974 Less: purchases of property, equipment, and other assets 170 177 409 Free cash flow (non-GA
Slide 26: Thank You
Thank You paloaltonetworks.com © 2026 Palo Alto Networks, Inc. All rights reserved.