Palo Alto Networks Q3 Revenue Jumps 31% to $3 B, Guides $3.35 B Q4
PANW•Palo Alto Networks reported Q3 revenue of $3.00 billion, a 31% increase driven by $388 million from CyberArk and Chronosphere, yet posted a $177 million net loss compared to prior-year profit. The company sees Q4 revenue of $3.35–3.36 billion and ups FY26 adjusted EPS guidance to $3.77–$3.79.
1. Q3 Financial Results
Palo Alto Networks delivered Q3 revenue of $3.00 billion, up 31% year-over-year and above the $2.94 billion estimate, with acquisitions of CyberArk and Chronosphere contributing $388 million. The firm recorded a net loss of $177 million, or $0.22 per share, reversing a $262 million net profit, or $0.37 per share, from the year-ago period.
2. Upwardly Revised Guidance
For Q4, the company forecasts revenue of $3.35 billion to $3.36 billion, surpassing the $3.28 billion consensus. It also raised full-year adjusted EPS guidance to $3.77–$3.79 from $3.65–$3.70 and lifted revenue outlook to $11.42–$11.43 billion versus the prior $11.29 billion estimate.
3. AI-Driven Demand
Accelerating adoption of AI tools like Anthropic’s Project Glasswing has increased urgency for advanced cybersecurity solutions. Palo Alto’s early integration of AI-based threat detection positions it to capture rising demand as enterprises secure AI deployments at scale.
