Palo Alto Networks Inc (NASDAQ:PANW) reported financial results for the second quarter of fiscal 2026 after the market close on Tuesday. Here’s a look at the key details from the report.
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Palo Alto Exceeds Analyst Estimates In Q2
Palo Alto reported fiscal second-quarter revenue of $2.59 billion, beating analyst estimates of $2.58 billion. The cybersecurity company posted adjusted earnings of $1.03 per share for the quarter, beating analyst estimates of 94 cents per share, according to Benzinga Pro.
Total revenue was up 15% year-over-year and remaining performance obligations grew 23% year-over-year to $16 billion. The company said next-generation security annual recurring revenue increased 33% year-over-year to $6.3 billion.
Palo Alto ended the quarter with approximately $4.16 billion in cash and cash equivalents.
“We saw continued strength in platformizations, a trend that is accelerating due to AI – customers are keen to both modernize and normalize their cybersecurity stack, aligning them to our approach. We also saw steady and strong adoption of AI security, which we expect will be a long term trend,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.
Palo Alto Guides For Continued Growth
Palo Alto expects fiscal third-quarter revenue to be in the range of $2.941 billion to $2.945 billion versus estimates of $2.60 billion. The company anticipates third-quarter adjusted earnings between 78 cents and 80 cents per share versus estimates of 92 cents per share.
Palo Alto also raised its fiscal 2026 revenue guidance. The company now expects full-year revenue of $11.28 billion to $11.31 billion, up from prior guidance of $10.50 billion to $10.54 billion. Analysts are expecting full-year revenue of $10.55 billion.
Meanwhile, the company lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70 per share, versus estimates of $3.86 per share.
Palo Alto’s management team will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.
PANW Shares Rise After The Bell
PANW Price Action: Palo Alto shares were down 3% in after-hours Tuesday, trading at $158.60 at the time of publication, according to Benzinga Pro.
Photo: Tada Images / Shutterstock
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