Palo Alto Networks Q3 Revenue Jumps 31% to $3.0B, ARR Up 60%
PANW•Palo Alto Networks posted Q3 revenue of $3.0 billion, up 31% year-over-year, and next-generation security ARR climbed 60% to $8.1 billion, boosted by $1.6 billion from CyberArk and Chronosphere. Non-GAAP net income rose to $684 million and adjusted free cash flow hit $910 million as Q4 revenue guidance targets 32% growth.
1. Q3 Financial Highlights
Total revenue in Q3 FY26 reached $3.0 billion, a 31% increase from the prior year, driven by accelerating organic bookings. Next-generation security ARR rose 60% to $8.1 billion, including $1.6 billion acquired through CyberArk and Chronosphere.
2. Profitability and Cash Flow
GAAP operating loss was $183 million versus GAAP operating income of $219 million last year, while non-GAAP operating income increased to $814 million. Non-GAAP net income amounted to $684 million and adjusted free cash flow climbed to $910 million, yielding a 38.5% trailing 12-month free cash flow margin.
3. Acquisition Contribution
The integration of CyberArk and Chronosphere added $388 million to revenue, $1.6 billion to next-generation security ARR, and $1.8 billion to remaining performance obligations, supporting overall growth across Palo Alto Networks’ platforms.
4. Guidance for Q4 and FY26
For Q4 FY26, the company forecasts total revenue of $3.345–$3.355 billion (32% growth), next-generation security ARR of $8.90–$8.95 billion (59%–60% growth), and diluted non-GAAP EPS of $0.96–$0.98. Full-year targets include revenue of $11.415–$11.425 billion and free cash flow margin of 37.5%.
