PA
PANW
PANW Palo Alto Networks (PANW) Q4 FY25 earnings call
Palo Alto Networks concluded FY25 with robust performance, driven by its platformization strategy and strong execution across network security, cloud, and SecOps. The company's focus on integrated security solutions, particularly in the context of AI transformation, is resonating with customers, leading to significant deal wins and accelerated ARR growth. The proposed acquisition of CyberArk aims to further strengthen its identity security offerings, positioning the company for continued leadership in the evolving cybersecurity landscape.
Youβre reading a preview. Opening the full call uses 1 concall credit.
Sign in to use your monthly call allowance.
PANW operating KPIs by quarter
| KPI | Jan 2025 Q2 FY25 | Apr 2025 Q3 FY25 | This call Jul 2025 Q4 FY25 | Oct 2025 Q1 FY26 | Jan 2026 Q2 FY26 | Apr 2026 Q3 FY26 | Jul 2026 Q4 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|
| Customers SASE | 5,600+We now have over 5,600 SASE customers and over 23 million individual seats across our SASE base as well as our GP customers.Source: earnings call transcript | ~6,000We now have approximately 6,000 SASE customers, up 22% year-over-year.Source: earnings call transcript | 6,300+We now have over 6,300 SASE customers and account for 1/3 of the Fortune 500.Source: earnings call transcript | ~6,800We now have approximately 6,800 SASE customers, including 1/3 of the Fortune 500, including leading technology companies like IBM and Oracle.Source: earnings call transcript | β | β | β | β |
| Remaining performance obligation (RPO) | $13BTotal RPO grew 21% to $13 billion at the high end of our guided range.Source: earnings call transcript | $13.5BOur remaining performance obligation, or RPO, grew 19% to $13.5 billion.Source: earnings call transcript | $15.8BRemaining performance obligation, or RPO, grew 24% to $15.8 billion.Source: earnings call transcript | $15.5BRemaining performance obligation, or RPO, grew 24% to $15.5 billion.Source: earnings call transcript | $16BOur remaining performance obligation, or RPO, grew 23% to $16.0 billion.Source: earnings call transcript | $18.4BOur RPO reached $18.4 billion, up 36% compared to last year when adjusting for recent CyberArk and Chronosphere acquisitions, both of which are exceeding expectations in the first quarter postclose.Source: earnings call transcript | $21.2BWe achieved record RPO, surpassing the $20 billion threshold for the first time to close the year at $21.2 billion, representing a growth rate of 34%.Source: earnings call transcript | +15.2% |
| Remaining performance obligation (RPO) Current | $6.1BOur current RPO grew 17% to $6.1 billion.Source: earnings call transcript | $6.2BOur current RPO was $6.2 billion, growing 16% year-on-year.Source: earnings call transcript | $7BOur current RPO was $7.0 billion, growing 17% year-over-year.Source: earnings call transcript | $6.9BOur current RPO, which reflects near-term revenue realization stood at $6.9 billion, representing 16% growth.Source: earnings call transcript | $7.1BOur current RPO, which represents a near-term revenue realization was $7.1 billion, representing 18% growth.Source: earnings call transcript | $8.3BCurrent RPO was $8.3 billion, up 34% year-over-year.Source: earnings call transcript | $9.3BCurrent RPO reached $9.3 billion, also up 34% as contract durations remained steady year-over-year.Source: earnings call transcript | +12% |
| Annual recurring revenue (ARR) Next-Generation Security (NGS) | $4.78BOur NGS ARR again delivered strong growth growing 37%, finishing Q2 at $4.78 billion.Source: earnings call transcript | β | $5.58BWe ended the quarter at $5.58 billion in NGS ARR, which grew 32%.Source: earnings call transcript | $5.85BNGS ARR ended the quarter at $5.85 billion, achieving 29% growth and exceeding the high end of our guidance.Source: earnings call transcript | $6.33BThe increasing adoption of our platforms is most evident in our next-generation security ARR, which grew 33% to $6.33 billion.Source: earnings call transcript | $8.13BAltogether, we delivered $8.13 billion in NGS ARR during the third quarter, representing 60% year-over-year growth.Source: earnings call transcript | $9.1BNGS ARR reached $9.1 billion, up 63%, enabling us to report one of our most substantial Next-Generation Security outperformances to date.Source: earnings call transcript | +11.9% |
| Customers XSIAM | β | ~270We now have approximately 270 customers in XSIAM and the average ARR per customer is over $1 million.Source: earnings call transcript | ~400We ended Q4 with approximately 400 customers on XSIAM and the average ARR per customer continues to be over $1 million.Source: earnings call transcript | ~470We now have approximately 470 customers with the average customer paying over $1 million in ARR.Source: earnings call transcript | 600+We welcomed almost 150 new customers, bringing our total base to over 600, paying an average of nearly $1 million in ARR.Source: earnings call transcript | 740We ended the third quarter with more than $600 million in ARR, representing a 100% year-over-year increase across a growing base of 740 customers.Source: earnings call transcript | β | β |
| Paid seats Prisma Access Browser | β | ~3MIn just 18 months since our talent acquisition, we have now sold approximately 3 million licensed seats on Prisma Access browser, up more than 10x from a year ago.Source: earnings call transcript | β | 7.5M+In Q1, we crossed 7.5 million browsers sold, while our bookings nearly quadrupled year-over-year.Source: earnings call transcript | β | β | β | β |
| Annual recurring revenue (ARR) AI | β | ~$400MWithin NGS ARR, we continue to see significant momentum around our Cortex platform and our AI ARR is now approximately $400 million in Q3, up over 2.5x year-over-year.Source: earnings call transcript | ~$545MAI ARR is now approximately $545 million in Q4, up over 2.5x year-over-year.Source: earnings call transcript | β | β | β | β | β |
| Net revenue retention rate Platformized customers | β | β | β | β | 119%The success of this strategy is also reflected in our best-in-class net retention rate amongst platformized customers, which stands at 119% with low single-digit churn.Source: earnings call transcript | 120%This is reflected in our 120% net retention and single-digit churn rates amongst this cohort.Source: earnings call transcript | 120%+Beyond initial adoption, standardizing our platform yields superior retention and expansion, with NRR or net revenue retention exceeding 120% for our platformized cohort in Q4.Source: earnings call transcript | β |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.