Palo Alto Networks Inc. (NASDAQ:PANW) delivered a strong fiscal third-quarter 2026 earnings report, beating analyst estimates and boosting its full-year outlook. Despite the strong print, shares slipped 3.17% in after-hours trading following a volatile post-market session.
The Only Way To Fight Back
Appearing on CNBC’s Mad Money, Palo Alto Networks Chairman and CEO Nikesh Arora declared a paradigm shift in the cybersecurity industry.
He warned that frontier AI models like “Mythos” have significantly compressed cyberattack timelines, giving adversaries the capability to execute comprehensive ransomware campaigns in mere minutes.
To counter this weaponized automation, Arora told host Jim Cramer that enterprises must fundamentally overhaul their defensive strategies.
“There is only one long-term solution, to consolidate platforms, bring all your cyber data in one place, and fight AI with AI,” Arora emphasized.
Jabbing The Competition
The discussion quickly shifted to the rapidly consolidating security landscape, with Cramer asking if the industry had devolved into a duopoly between Palo Alto Networks and its fierce rival, CrowdStrike Holdings Inc. (NASDAQ:CRWD).
Arora praised CrowdStrike CEO George Kurtz for doing a “tremendous job,” but could not resist a playful competitive swipe at his prominent peer.
“We’re still slightly bigger than them. So please tell him that when you see him tomorrow,” Arora teased Cramer.
Record Q3 Momentum
Robust financial metrics back the executive’s confidence. Palo Alto reported third-quarter revenue of approximately $3 billion, beating the $2.94 billion analyst consensus, alongside adjusted earnings of 85 cents per share.
Next-generation security annual recurring revenue (NGS ARR) surged 60% year-over-year to $8.13 billion, driven by aggressive customer “platformization” and high throughput hardware demand for AI data center build-outs.
Looking ahead, the company raised its full-year fiscal 2026 revenue guidance to a range of $11.415 billion to $11.425 billion, underscoring sustained momentum as AI transitions from experimental phases to enterprise-wide production.
How Has PANW Performed In 2026?
In comparison with the Nasdaq 100’s 21.64% year-to-date advance, shares of PANW have advanced by 56.01% over the same period. It closed 1.10% lower at $297.18 apiece on Tuesday. The stock was lower by 3.39% in premarket on Wednesday.
Over the last month, PANW stock was up 58.70%, and it rose 53.08% and 49.35% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that PANW maintains a strong price trend in the long, medium, and short terms, with a poor value ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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