14.9%$2.594
Revenue Growth
PANW's revenue increased by 14.9% year-over-year to $2.594 billion, driven by strong demand for its cybersecurity solutions.
Source: Source: 10-Q Income Statement, p.1
AI Takeaway
PANW reported strong financial performance in Q2 FY2026 with significant growth in revenue, net income, and operating income, driven by increased demand and improved operational efficiency.
Revenue
$2.59B
++14.93% YoY
EPS (Basic)
$0.61
++48.78% YoY
Gross Margin
73.6%
++0.13% YoY
Operating Income
$397M
++64.73% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
PANW's revenue increased by 14.9% year-over-year to $2.594 billion, driven by strong demand for its cybersecurity solutions.
Source: Source: 10-Q Income Statement, p.1
Operating income rose by 64.7% to $397 million, reflecting improved operational efficiencies and cost management.
Source: Source: 10-Q Income Statement, p.1
Operating cash flow increased by 12.5% year-to-date, indicating strong cash generation capabilities.
Source: Source: 10-Q Cash Flow, p.1
As a cybersecurity company, PANW faces high risks from evolving cyber threats that could impact its operations and reputation.
Source: Source: Industry Analysis
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Upgrade to unlockReported EPS of $1.03 versus the $0.96 analyst consensus — a +7.2% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.59B | $2.26B | +14.93% |
Cost of Revenue | $685M | $599M | +14.36% |
Gross Profit | $1.91B | $1.66B | +15.14% |
Operating Income | $397M | $241M | +64.73% |
Net Income | $432M | $267M | +61.80% |
EPS (Basic) | $0.61 | $0.41 | +48.78% |
EPS (Diluted) | $0.61 | $0.38 | +60.53% |
R&D Expense | $511M | $505M | +1.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $24.98B | $20.95B | +19.22% |
Current Assets | $8.37B | $6.34B | +32.01% |
Total Liabilities | $15.59B | $14.58B | +6.93% |
Current Liabilities | $8.01B | $7.55B | +6.05% |
Stockholders' Equity | $9.39B | $6.38B | +47.34% |
Cash & Equivalents | $4.16B | $2.23B | +86.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.33B | $2.07B | +12.48% |
Investing Cash FlowYTD | $-332M | $-925M | +64.11% |
Financing Cash FlowYTD | $-106M | $-452M | +76.55% |
D&AYTD | $180M | $171M | +5.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 73.6% | 73.5% | +0.13% |
Operating Margin | 15.3% | 10.7% | +4.63% |
Net Margin | 16.7% | — | — |
ROE | 4.6% | — | — |
ROA | 1.7% | — | — |
Current Ratio | $1.045 | — | — |
Debt to Equity | $1.659 | — | — |
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PANW reported a strong increase in net income and EPS, with net income up 61.8% to $432 million and EPS up 48.8% to $0.61, indicating a robust performance.
Key takeaways include a 14.9% increase in revenue to $2.594 billion, a 64.7% rise in operating income, and strong cash flow improvements.
PANW faces risks from cybersecurity threats, a competitive market, and potential regulatory changes.
Revenue grew by 14.9% year-over-year to $2.594 billion, driven by strong demand for cybersecurity solutions.
PANW's financial health is strong, with a significant increase in assets and equity, and improved cash flow positions.