Palo Alto Networks hits $10B run rate, beats S&P 500 across all timeframes

Palo Alto Networks posted Q4 revenue of $2.5 billion, up 16% from a year earlier, becoming the first dedicated cybersecurity company to surpass a $10 billion annual revenue run rate.

"Our platformization strategy is driving record customer adoption, with 1,400 net new platformizations in the quarter," Chief Executive Officer Nikesh Arora said.

Full-year revenue rose 15% to $9.2 billion. Next-Generation Security annual recurring revenue climbed 32% to $5.6 billion, while remaining performance obligations grew 24% to $15.8 billion. Non-GAAP earnings per share came in at 95 cents for the quarter, beating the company's guidance range of 87 to 89 cents. Adjusted free cash flow reached $3.51 billion, representing a 38% margin and keeping Palo Alto Networks a Rule-of-50 company for the fifth consecutive year.

The results reinforce Palo Alto Networks' position as the dominant player in enterprise security spending, with the stock beating the S&P 500 across all timeframes. The company's proposed acquisition of CyberArk, expected to close in the second half of fiscal 2026, would add identity security capabilities to its platform. For fiscal 2026, Palo Alto Networks guided revenue of $10.48 billion to $10.53 billion, implying 14% growth, with NGS ARR expected to reach $7 billion.

Record bookings of $4.4 billion in the quarter, up 20% year over year, reflected strong demand for the company's integrated security platform. Product revenue rose 19% to $573.9 million, driven by higher software mix, while subscription and support revenue increased 15% to $1.96 billion. The company ended the fiscal year with $2.27 billion in cash and equivalents and no outstanding convertible debt, providing financial flexibility for the CyberArk integration.

The guidance raise signals management expects cybersecurity demand to remain strong as enterprises consolidate vendors. Investors will watch the Q1 fiscal 2026 earnings call in November for updates on CyberArk integration progress and margin trajectory.

This article is for informational purposes only and does not constitute investment advice.