TLDR
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PANW rises after hours as Q3 revenue jumps 31% on AI security demand
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Palo Alto Networks posts $3B Q3 revenue as security bookings accelerate
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PANW gains after earnings as AI security demand lifts platform growth
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Palo Alto Networks sees stronger ARR as AI security demand expands
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PANW stock rebounds after Q3 results show stronger cybersecurity growth
Palo Alto Networks (PANW) rose after hours after reporting stronger fiscal third-quarter revenue and higher security demand. The stock closed at $297.18, down 1.10%, before rising to $304.00 after hours, up 2.29%. The move followed a sharp earnings-driven spike, although partial profit-taking trimmed earlier gains.
Palo Alto Networks, Inc., PANW
Palo Alto Networks Reports Strong Q3 Revenue Growth
Palo Alto Networks reported fiscal third-quarter 2026 revenue of $3.0 billion, up 31% from last year. The quarter ended on April 30, 2026, and included growth from its core security platforms. The company gained added revenue from CyberArk and Chronosphere.
CyberArk and Chronosphere contributed $388 million to total revenue during the quarter. Their inclusion also lifted platform scale across cloud security, identity security, and observability operations. Therefore, Palo Alto Networks showed stronger revenue depth across its expanded cybersecurity portfolio.
Next-Generation Security annual recurring revenue rose 60% year over year to $8.1 billion. CyberArk and Chronosphere added $1.6 billion to that figure during the period. Besides, remaining performance obligation increased 36% to $18.4 billion.
PANW Stock Reacts as AI Security Demand Rises
PANW stock gained in after-hours trading as demand for AI security remained a central growth driver. The company said customers increased spending to protect AI deployments at scale. Hence, the earnings reaction reflected stronger confidence in cybersecurity demand linked to artificial intelligence.
Palo Alto Networks has expanded through acquisitions while building a broader platform strategy. The company now sells security products across network, cloud, security operations, identity and endpoint protection. Management said the business stayed ahead of its integration plans.
Profitability also improved on a non-GAAP basis despite a GAAP loss. The company posted a GAAP operating loss of $183 million for the quarter. However, non-GAAP operating income reached $814 million, up from $627 million last year.
Palo Alto Networks Issues Firm FY2026 Outlook
Palo Alto Networks expects fourth-quarter revenue between $3.345 billion and $3.355 billion. That range represents 32% year-over-year growth under current market conditions. Moreover, the company expects Next-Generation Security ARR between $8.90 billion and $8.95 billion.
For fiscal 2026, the company expects total revenue between $11.415 billion and $11.425 billion. That forecast represents 24% growth from the prior fiscal year. The company also expects non-GAAP earnings per share between $3.77 and $3.79.
Adjusted free cash flow remained another key strength in the quarter. Palo Alto Networks generated $910 million in adjusted free cash flow during Q3. Besides, the company expects a 37.5% adjusted free cash flow margin for fiscal 2026.
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