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Jul 31, 2025
Palo Alto Networks Q4 2025 Earnings Report
Palo Alto Networks reported strong Q4 2025 results with 16% revenue growth and solid non-GAAP profitability.
Key Takeaways
Palo Alto Networks delivered $2.54B in revenue for Q4 2025, driven by double-digit growth across its subscription and product segments. Despite a drop in GAAP net income YoY, the company posted strong non-GAAP earnings, reflecting operational efficiency and continued customer demand.
Q4 revenue grew 16% YoY to $2.54 billion.
Non-GAAP EPS rose to $0.95, up from $0.75 a year ago.
Next-Gen Security ARR increased 32% YoY to $5.6 billion.
Remaining performance obligations grew 24% YoY to $15.8 billion.
Revenue by Segment
Forward Guidance
The company expects continued double-digit revenue growth and strong margins in fiscal 2026, supported by its Next-Gen Security portfolio and operating efficiency.
Positive Outlook
- Revenue expected to grow 14% YoY to over $10.5B in FY26.
- Next-Gen Security ARR projected to grow 26–27%.
- RPO forecasted to grow 17–18% YoY.
- Non-GAAP EPS forecasted between $3.75–$3.85.
- Free cash flow margin expected at 38–39%.
Challenges Ahead
- GAAP net income continues to be impacted by high share-based compensation.
- Tax-related adjustments created a sharp drop in GAAP profitability.
- High litigation and acquisition-related volatility in expenses.
- Decline in YoY GAAP net income despite revenue growth.
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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