Earnings Call
Jun 2, 2026
Q2 FY2026
EPS Estimate
0.81
EPS Actual
1.03
Post-Earnings Close
$280.43
Earnings Reaction
-5.6%
Palo Alto Networks posted a clean Q2 FY2026 beat across its most-watched metrics, but the quarter's real story is the simultaneous closing of two of the company's largest-ever acquisitions, CyberArk and Chronosphere, and what they signal about where management believes the next wave of enterprise security spending will concentrate. Revenue came in at $2.59 billion, up 15% year-over-year on an organic basis (excluding Chronosphere, which closed near quarter-end with immaterial revenue contribution), while non-GAAP EPS of $1.03 exceeded the high end of guidance for the third consecutive quarter. NGS ARR reached $6.33 billion, up 33% reported and 28% organically, with SASE surpassing $1.5 billion ARR at roughly 40% growth and XSIAM crossing the $500 million ARR milestone with over 600 paying customers averaging nearly $1 million in ARR. Operating margin held above 30% for the third straight quarter at 30.3%, expanding 190 basis points year-over-year.
Report generated on Jun 1, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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