Adds 110 Platformizations, Posts 30.3% Margin, Guides $7.96B ARR
CEO Arora said the company added 110 net new platformizations in Q2 to reach 1,550 (up 35%) and achieved 119% net retention with single-digit churn. It delivered a 30.3% non-GAAP operating margin, SASE ARR of $1.5 billion (40% growth) and guided Q3 NGS ARR to $7.94–7.96 billion and revenue of $2.94 billion.
1. Q2 Platformization and Retention
CEO Arora said the company added about 110 net new platformizations in Q2, a quarterly record outside Q4, bringing the total to approximately 1,550 (up 35%). Net retention among these platformized customers stood at 119% with single-digit churn.
2. Margin and Segment ARR Growth
Palo Alto Networks delivered a non-GAAP operating margin of 30.3%, marking the third straight quarter above 30%. SASE ARR surpassed $1.5 billion with 40% year-over-year growth, while XSIAM ARR topped $500 million and software firewall ARR rose about 25%.
3. AI Security Momentum and Acquisitions
Prisma AIRS customer count more than tripled QoQ to over 100, supporting a nine-figure AI security pipeline. The company completed the Chronosphere acquisition, adding roughly $200 million ARR, and closed CyberArk early Q3 to bolster identity security capabilities.
4. Q3 Guidance
Management guided Q3 NGS ARR to $7.94–7.96 billion (up about 56%) and revenue to around $2.94 billion (up 28–29%), while planning a $2.3 billion cash outlay for CyberArk integration and issuing 112 million shares.