Revenue Growth
PANW achieved a 31.1% increase in revenue year-over-year, driven by strong demand for its cybersecurity solutions.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
PANW reported a significant revenue increase in Q3 FY2026, but faced a substantial decline in profitability, with negative net income and operating income due to rising costs and expenses.
Revenue
$3B
+31.15% YoY
EPS (Diluted)
-$0.22
-159.46% YoY
Gross Margin
67.6%
-5.4 pts YoY
Operating Income
-$183M
-183.56% YoY
Source: SEC XBRL
Palo Alto Networks (PANW) reported Q3 FY2026 revenue of $3B, up 31.1% year over year. Operating margin was -6.1%, against 9.6% a year earlier. PANW's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 1.02 | 1.00 | Beat +2.4% |
| Jun 2026This filing | 0.85 | 0.81 | Beat +4.8% |
| Mar 2026 | 1.03 | 0.96 | Beat +7.2% |
| Dec 2025 | 0.93 | 0.91 | Beat +2.4% |
Adjusted (non-GAAP) EPS of $0.85 versus the $0.81 analyst consensus — a +4.8% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.22.
Compiled by AI from this SEC filing
PANW achieved a 31.1% increase in revenue year-over-year, driven by strong demand for its cybersecurity solutions.
Source: 10-Q Income Statement
Research and development expenses rose by 48.6%, reflecting the company's investment in innovation and product development.
Source: 10-Q Income Statement
Gross margin decreased by 5.4 percentage points due to a 57.4% increase in the cost of revenue, impacting overall profitability.
Source: 10-Q Income Statement
Compiled by AI from this SEC filing · 1 high, 2 medium, 0 low
The significant increase in cost of revenue and R&D expenses could continue to pressure margins and profitability.
Source: 10-Q Income Statement
The company reported a negative operating income of $183 million, indicating operational challenges that need to be addressed.
Source: 10-Q Income Statement
Despite positive operating cash flow, the negative free cash flow due to high investing activities could affect liquidity.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.00 $B | 2.29 $B | +31.15% |
Cost of Revenue $M | 974.00 $M | 619.00 $M | +57.35% |
Gross Profit $B | 2.03 $B | 1.67 $B | +21.44% |
Operating Income $M | -183.00 $M | 219.00 $M | -183.56% |
Net Income $M | -177.00 $M | 262.00 $M | -167.56% |
EPS (Basic) $ | -0.22 $ | 0.39 $ | -156.41% |
EPS (Diluted) $ | -0.22 $ | 0.37 $ | -159.46% |
R&D Expense $M | 734.00 $M | 494.00 $M | +48.58% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Other companies in Systems Software