Palo Alto Networks (PANW) Q4 FY26 earnings call

Earnings call· Jul 2026 (Q4 FY26)· Information Technology· Sep 1, 2026

Source: earnings call transcript

Palo Alto Networks delivered a record Q4 FY26, driven by accelerating bookings momentum and strong platformization adoption. The company highlighted the profound implications of AI for cybersecurity, emphasizing the need for unified, real-time defense platforms. Strategic acquisitions and cross-sell initiatives are exceeding expectations, positioning the company for continued growth amidst a rapidly evolving threat landscape.

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PANW operating KPIs by quarter

PANW operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jan 2025 Q2 FY25	Apr 2025 Q3 FY25	Jul 2025 Q4 FY25	Oct 2025 Q1 FY26	Jan 2026 Q2 FY26	Apr 2026 Q3 FY26	This call 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	~6,000 We 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	~6,800 We 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	—	—	—	—
Remaining performance obligation (RPO)	$13B Total RPO grew 21% to $13 billion at the high end of our guided range. Source: earnings call transcript	$13.5B Our remaining performance obligation, or RPO, grew 19% to $13.5 billion. Source: earnings call transcript	$15.8B Remaining performance obligation, or RPO, grew 24% to $15.8 billion. Source: earnings call transcript	$15.5B Remaining performance obligation, or RPO, grew 24% to $15.5 billion. Source: earnings call transcript	$16B Our remaining performance obligation, or RPO, grew 23% to $16.0 billion. Source: earnings call transcript	$18.4B Our 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	$21.2B We 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	$6.1B Our current RPO grew 17% to $6.1 billion. Source: earnings call transcript	$6.2B Our current RPO was $6.2 billion, growing 16% year-on-year. Source: earnings call transcript	$7B Our current RPO was $7.0 billion, growing 17% year-over-year. Source: earnings call transcript	$6.9B Our current RPO, which reflects near-term revenue realization stood at $6.9 billion, representing 16% growth. Source: earnings call transcript	$7.1B Our current RPO, which represents a near-term revenue realization was $7.1 billion, representing 18% growth. Source: earnings call transcript	$8.3B Current RPO was $8.3 billion, up 34% year-over-year. Source: earnings call transcript	$9.3B Current 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)	$4.78B Our NGS ARR again delivered strong growth growing 37%, finishing Q2 at $4.78 billion. Source: earnings call transcript	—	$5.58B We ended the quarter at $5.58 billion in NGS ARR, which grew 32%. Source: earnings call transcript	$5.85B NGS ARR ended the quarter at $5.85 billion, achieving 29% growth and exceeding the high end of our guidance. Source: earnings call transcript	$6.33B The 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	$8.13B Altogether, we delivered $8.13 billion in NGS ARR during the third quarter, representing 60% year-over-year growth. Source: earnings call transcript	$9.1B NGS 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	—	~270 We now have approximately 270 customers in XSIAM and the average ARR per customer is over $1 million. Source: earnings call transcript	~400 We ended Q4 with approximately 400 customers on XSIAM and the average ARR per customer continues to be over $1 million. Source: earnings call transcript	~470 We 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	740 We 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	—	—
Paid seats Prisma Access Browser	—	~3M In 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	—	7.5M+ In Q1, we crossed 7.5 million browsers sold, while our bookings nearly quadrupled year-over-year. Source: earnings call transcript	—	—	—	—
Annual recurring revenue (ARR) AI	—	~$400M Within 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	~$545M AI ARR is now approximately $545 million in Q4, up over 2.5x year-over-year. Source: earnings call transcript	—	—	—	—	—
Net revenue retention rate Platformized customers	—	—	—	—	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	—

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.

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