Palo Alto Networks projects double-digit revenue growth on AI-led demand

Palo Alto Networks Inc (NASDAQ: PANW ) reported financial results for the fourth quarter of fiscal 2026 after the market close on Tuesday. Here’s a look at the key details from the print. Palo Alto Networks stock is moving higher. Why are PANW shares up? Palo Alto Q4 Earnings Highlights Palo Alto posted fourth-quarter revenue of $3.41 billion, beating analyst estimates of $3.35 billion. The cybersecurity company reported adjusted earnings of $1.02 per share for the quarter, beating estimates of 98 cents per share, according to Pro. Total revenue was up 34% year-over-year, and remaining performance obligations grew 34% year-over-year to $21.2 billion. The company said next-generation security annual recurring revenue increased 63% year-over-year to $9.1 billion. Palo Alto generated $1.3 billion in adjusted free cash flow during the quarter and exited the period with approximately $2.51 billion in cash and cash equivalents. “We delivered a strong Q4 to close out the year, adding nearly $1 billion of Net New NGS ARR in a single quarter,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “The latest advancements in AI are elevating cybersecurity to the top of the CIO priority list, and will serve as durable tailwinds as we progress towards our $20 billion FY30 NGS ARR target.” Palo Alto expects first-quarter revenue to be in the range of $3.30 billion to $3.31 billion versus estimates of $3.22 billion. The company anticipates first-quarter adjusted earnings between 96 cents and 98 cents per share versus estimates of 93 cents per share. Palo Alto also introduced fiscal 2027 guidance. The company expects full-year revenue of $14.10 billion to $14.20 billion versus estimates of $13.79 billion, and adjusted earnings of $4.16 to $4.19 per share versus estimates of $4.11 per share. In connection with earnings, Palo Alto announced the acquisition of Console, an AI-native platform that enables agentic capabilities. The company said Console will help deepen its agentic capabilities in Cortex as AI reshapes the threat landscape. Palo Alto management will discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET. A link to the call has been provided below. PANW Shares Move Higher After Earnings PANW Price Action: Palo Alto shares were up 3.04% in after-hours, trading at $368.58 at the time of publication on Tuesday, according to Pro. Read Also: Elon Musk Predicts AI Will Be ‘Superhuman’ at Everything Digital by End of 2027: ‘Doesn’t Require Shaping Atoms’ Image: Shutterstock.com