Palo Alto Networks' third quarter 2026 revenue beat estimates as Next-Gen Security ARR surged 60%

Palo Alto Networks reported third quarter 2026 revenue of $3.0 billion, a 31% year-over-year increase that surpassed analyst expectations, with non-GAAP EPS of $0.85 also beating consensus. The results were driven by strong performance in its Next-Generation Security (NGS) segment and continued momentum from recent acquisitions.

Key Highlights

• Next-Generation Security (NGS) ARR grew 60% year-over-year to $8.1 billion, exceeding expectations and indicating strong adoption of the company's newer security platforms.
• Remaining Performance Obligation (RPO), a key indicator of future revenue, increased 36% year-over-year to $18.4 billion.
• The company guided for fiscal fourth quarter revenue to grow 32% year-over-year and raised its full-year 2026 adjusted free cash flow margin target to 37.5%.