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Oct 31, 2025
Palo Alto Networks Q1 2026 Earnings Report
Palo Alto Networks reported strong Q1 2026 results with solid top-line growth and continued profitability.
Key Takeaways
Palo Alto Networks delivered a robust Q1 2026, highlighted by 16% revenue growth, solid earnings, and strong momentum in Next-Generation Security and platformization strategy.
Revenue rose to $2.5 billion from $2.139 billion in Q1 2025
Non-GAAP net income grew to $662 million, with adjusted EPS of $0.93
Next-Generation Security ARR increased to $5.9 billion
GAAP net income was $334 million, slightly down from $351 million YoY
Revenue by Segment
Forward Guidance
The company expects continued growth in revenue, ARR, and profitability for Q2 and FY2026, driven by strong execution and demand for its security platform.
Positive Outlook
- Q2 revenue guidance: $2.57B to $2.59B
- Q2 non-GAAP EPS guidance: $0.93 to $0.95
- Q2 Next-Gen Security ARR guidance: $6.11B to $6.14B
- FY2026 revenue guidance: $10.50B to $10.54B
- FY2026 adjusted free cash flow margin guidance: 38% to 39%
Challenges Ahead
- Slight YoY decline in GAAP net income
- Potential execution risks from ongoing platform integration
- No specific geographic performance details disclosed
- Continued dependence on non-GAAP adjustments for profitability clarity
- Macroeconomic uncertainties could impact future customer spend
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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