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Palo Alto Networks, Inc. (PANW) Q3 FY2026 Financial Statements: Revenue $3.00B, Net loss $177.00M

CIK 0001327567 · Nasdaq · Latest period: Q3 FY2026 (ended 2026-04-30, 10-Q accession 0001327567-26-000015) · Annual report: FY2025 10-K (filed 2025-08-29, accession 0001327567-25-000027) · Next filing: 10-K, due (projected 2026-09-04)

More for Palo Alto Networks: Company index · 10-K and 10-Q summary · 8-K filings and events

PeriodQ3 FY2026

Published

Palo Alto Networks reported $3.00 billion in revenue for Q3 FY2026, the quarter ended April 30, 2026, up 31.1% from a year earlier, with the acquired identity security and observability businesses accounting for more than half of the increase. But it posted a net loss of $177 million against net income of $262 million a year earlier, or a loss of $0.22 per diluted share against $0.37. The swing came from acquisition accounting rather than from any deterioration in the underlying business: completing the CyberArk acquisition during the quarter brought amortization of acquired intangible assets and acquisition-related costs onto the income statement, producing a GAAP operating loss of $183 million while non-GAAP operating income, which excludes those charges along with share-based compensation, was $814 million, up 29.8%. Next-Generation Security annualized recurring revenue, the recurring-revenue measure management reports alongside results, stood at $8.1 billion at April 30, 2026.

MetricAmountvs. year ago
Revenue$3,002,000,000up 31.1%
Net income-$177,000,000swung from $262 million
Diluted EPS-$0.22swung from $0.37
Operating income-$183,000,000swung from $219 million
Non-GAAP operating income$814,000,000up 29.8%
Next-Generation Security ARR$8,100,000,000

About this file

TickerPANW
CIK0001327567
CompanyPalo Alto Networks, Inc.
Business typesoftware
Schema templatestandard (subscription cybersecurity software): revenue split between product and subscription and support, gross profit, operating income, net income, diluted EPS; balance sheet with deferred revenue and total debt; operating cash flow, capital expenditures and free cash flow, alongside the recurring-revenue metrics the company itself reports (Next-Generation Security ARR and remaining performance obligations)
Reporting currencyUSD
Converted to USDno
Unitsactual dollars (not millions); share counts in actual shares; per-share amounts in dollars

PANW annual income statement, balance sheet and cash flow

FY2025FY2024FY2023
Fiscal year202520242023
LabelFY2025FY2024FY2023
Period start2024-08-012023-08-012022-08-01
Period end2025-07-312024-07-312023-07-31
Period typefiscal yearfiscal yearfiscal year
Source accession0001327567-25-0000270001327567-25-0000270001327567-25-000027
Income statement
Product revenue1,801,900,0001,603,300,0001,578,400,000
Subscription and support revenue7,419,600,0006,424,200,0005,314,300,000
Total revenue9,221,500,0008,027,500,0006,892,700,000
Total cost of revenue2,451,600,0002,059,200,0001,909,700,000
Gross profit6,769,900,0005,968,300,0004,983,000,000
Research and development1,984,100,0001,809,400,0001,604,000,000
Sales and marketing3,100,200,0002,794,500,0002,544,000,000
General and administrative442,700,000680,500,000447,700,000
Total operating expenses5,527,000,0005,284,400,0004,595,700,000
Operating income1,242,900,000683,900,000387,300,000
Interest expense-3,000,000-8,300,000-27,200,000
Other income net355,800,000312,700,000206,200,000
Income before income taxes1,595,700,000988,300,000566,300,000
Provision for income taxes461,800,000-1,589,300,000126,600,000
Net income1,133,900,0002,577,600,000439,700,000
Basic EPS1.714.040.73
Diluted EPS1.63.640.64
Basic shares662,500,000638,500,000606,400,000
Diluted shares709,300,000707,900,000684,500,000
Balance sheet
Cash and cash equivalents2,268,600,0001,535,200,000
Short term investments634,600,0001,043,600,000
Accounts receivable net2,965,000,0002,618,600,000
Total current assets7,522,800,0006,849,700,000
Long term investments5,555,600,0004,173,200,000
Goodwill4,566,600,0003,350,100,000
Intangible assets net762,700,000374,900,000
Total assets23,576,200,00019,990,900,000
Deferred revenue current6,302,200,0005,541,100,000
Convertible senior notes current0963,900,000
Total current liabilities7,988,000,0007,682,700,000
Convertible senior notes noncurrent00
Deferred revenue noncurrent6,449,700,0005,939,400,000
Total liabilities15,751,800,00014,821,200,000
Retained earnings2,484,100,0001,350,200,000
Total stockholders equity7,824,400,0005,169,700,000
Shares outstanding667,900,000650,200,000
Total debt0963,900,000
Total deferred revenue12,751,900,00011,480,500,000
Cash flow
Share based compensation1,295,100,0001,075,400,0001,074,500,000
Depreciation and amortization343,400,000283,300,000282,200,000
Operating cash flow3,716,000,0003,257,600,0002,777,500,000
Business acquisitions net of cash acquired-1,054,400,000-610,600,000-204,500,000
Capital expenditures-246,200,000-156,800,000-146,300,000
Investing cash flow-2,204,700,000-1,509,900,000-2,033,800,000
Financing cash flow-778,900,000-1,343,100,000-1,726,300,000
Free cash flow3,469,800,0003,100,800,0002,631,200,000
Key metrics
Next generation security arr5,600,000,0004,200,000,000
Remaining performance obligations15,800,000,00012,700,000,000

PANW quarterly income statement, balance sheet and cash flow

Q3 FY2026Q3 FY2025
Fiscal year20262025
Fiscal quarter33
LabelQ3 FY2026Q3 FY2025
Period start2026-02-012025-02-01
Period end2026-04-302025-04-30
Period typethree monthsthree months
Source accession0001327567-26-0000150001327567-26-000015
Cash flow source accession0001327567-26-0000120001327567-26-000012
Non GAAP source accession0001327567-26-0000120001327567-26-000012
Key metrics source accession0001327567-26-000012
Income statement
Product revenue594,000,000453,000,000
Subscription and support revenue2,408,000,0001,836,000,000
Total revenue3,002,000,0002,289,000,000
Total cost of revenue974,000,000619,000,000
Gross profit2,028,000,0001,670,000,000
Research and development734,000,000494,000,000
Sales and marketing1,161,000,000793,000,000
General and administrative316,000,000164,000,000
Total operating expenses2,211,000,0001,451,000,000
Operating income-183,000,000219,000,000
Interest expense0-1,000,000
Other income net27,000,00093,000,000
Income before income taxes-156,000,000311,000,000
Provision for income taxes21,000,00049,000,000
Net income-177,000,000262,000,000
Basic EPS-0.220.39
Diluted EPS-0.220.37
Basic shares801,000,000665,000,000
Diluted shares801,000,000707,000,000
Balance sheet
Cash and cash equivalents2,364,000,000
Short term investments747,000,000
Accounts receivable net2,852,000,000
Total current assets7,713,000,000
Long term investments3,881,000,000
Goodwill21,902,000,000
Intangible assets net7,283,000,000
Total assets46,266,000,000
Deferred revenue current7,113,000,000
Convertible senior notes current160,000,000
Total current liabilities9,006,000,000
Convertible senior notes noncurrent1,192,000,000
Deferred revenue noncurrent6,492,000,000
Total liabilities18,598,000,000
Retained earnings3,073,000,000
Total stockholders equity27,668,000,000
Shares outstanding813,000,000
Total debt1,352,000,000
Total deferred revenue13,605,000,000
Cash flow
Operating cash flow871,000,000628,000,000
Free cash flow788,000,000560,000,000
Adjusted free cash flow non GAAP910,000,000578,000,000
Capital expenditures-83,000,000-68,000,000
Key metrics
Next generation security arr8,100,000,000
Remaining performance obligations18,400,000,000
Next generation security arr yoy growth percent60.0
Next generation security arr from acquisitions1,600,000,000
Remaining performance obligations yoy growth percent36.0
Remaining performance obligations from acquisitions1,800,000,000
Non GAAP
Non GAAP operating income814,000,000627,000,000
Non GAAP net income684,000,000561,000,000
Non GAAP diluted EPS0.850.8

PANW year-to-date income statement and cash flow

Nine months ended April 30, 2026
LabelNine months ended April 30, 2026
Fiscal year2026
Period start2025-08-01
Period end2026-04-30
Period typenine months
Source accession0001327567-26-000015
Income statement
Product revenue1,542,000,000
Subscription and support revenue6,528,000,000
Total revenue8,070,000,000
Total cost of revenue2,297,000,000
Gross profit5,773,000,000
Research and development1,773,000,000
Sales and marketing2,804,000,000
General and administrative673,000,000
Total operating expenses5,250,000,000
Operating income523,000,000
Interest expense0
Other income net282,000,000
Income before income taxes805,000,000
Provision for income taxes216,000,000
Net income589,000,000
Basic EPS0.81
Diluted EPS0.79
Basic shares729,000,000
Diluted shares744,000,000
Cash flow
Share based compensation1,314,000,000
Depreciation and amortization514,000,000
Operating cash flow3,196,000,000
Business acquisitions net of cash acquired-4,563,000,000
Capital expenditures-337,000,000
Investing cash flow-2,098,000,000
Financing cash flow-1,005,000,000
Free cash flow2,859,000,000
Non GAAP
Non GAAP operating income2,345,000,000
Non GAAP net income2,078,000,000
Non GAAP diluted EPS2.79
Non GAAP source accession0001327567-26-000012
Prior year comparative
LabelNine months ended April 30, 2025
Fiscal year2025
Period start2024-08-01
Period end2025-04-30
Period typenine months
Source accession0001327567-26-000015
Income statement
Product revenue1,228,000,000
Subscription and support revenue5,457,000,000
Total revenue6,685,000,000
Total cost of revenue1,772,000,000
Gross profit4,913,000,000
Research and development1,480,000,000
Sales and marketing2,271,000,000
General and administrative416,000,000
Total operating expenses4,167,000,000
Operating income746,000,000
Interest expense-3,000,000
Other income net261,000,000
Income before income taxes1,004,000,000
Provision for income taxes124,000,000
Net income880,000,000
Basic EPS1.33
Diluted EPS1.24
Basic shares659,000,000
Diluted shares708,000,000
Cash flow
Share based compensation941,000,000
Depreciation and amortization259,000,000
Operating cash flow2,695,000,000
Business acquisitions net of cash acquired-499,000,000
Capital expenditures-160,000,000
Investing cash flow-1,442,000,000
Financing cash flow-405,000,000
Free cash flow2,535,000,000
Non GAAP
Non GAAP operating income1,884,000,000
Non GAAP net income1,672,000,000
Non GAAP diluted EPS2.39
Non GAAP source accession0001327567-26-000012

PANW trailing twelve month income statement and cash flow

Trailing twelve months ended April 30, 2026
LabelTrailing twelve months ended April 30, 2026
Period start2025-05-01
Period end2026-04-30
Period typetrailing twelve months
Source accession0001327567-26-000012
DerivationThe income-statement lines below are fiscal 2025 (year ended July 31, 2025, from the FY2025 annual report on Form 10-K, accession 0001327567-25-000027) plus the nine months ended April 30, 2026 less the nine months ended April 30, 2025 (both from the Q3 FY2026 quarterly report on Form 10-Q, accession 0001327567-26-000015). The cash-flow lines are printed directly in the Q3 FY2026 results announcement furnished on Form 8-K, accession 0001327567-26-000012.
Income statement source accessions0001327567-25-000027; 0001327567-26-000015
Income statement
Total revenue10,606,500,000
Total cost of revenue2,976,600,000
Gross profit7,629,900,000
Operating income1,019,900,000
Net income842,900,000
Cash flow
Operating cash flow4,217,000,000
Capital expenditures-424,000,000
Free cash flow3,793,000,000
Adjusted free cash flow non GAAP4,079,000,000
Adjusted free cash flow margin non GAAP percent38.5

Adjustments

Value
Splits appliednone
Splits notePalo Alto Networks split its stock 3-for-1 in September 2022 and 2-for-1 in December 2024. Both filings used here were issued after both splits and already present every per-share amount and share count on a post-split basis, so no adjustment was applied.
ADR ration/a
FXNone. The company is a U.S. domestic filer and reports in U.S. dollars.

Notes

  • Palo Alto Networks' fiscal year ends July 31. Fiscal 2026 third quarter is the three months ended April 30, 2026.
  • Fiscal 2025, 2024 and 2023 come from the annual report on Form 10-K for the year ended July 31, 2025 (accession 0001327567-25-000027). The third quarter of fiscal 2026, the year-ago third quarter and the nine-month periods come from the quarterly report on Form 10-Q for the quarter ended April 30, 2026 (accession 0001327567-26-000015).
  • The 10-Q presents its cash flow statement for the nine months only, so it contains no three-month cash flow figures. Operating cash flow, capital expenditures and free cash flow for the third quarter of fiscal 2026 and for the year-ago third quarter, and the trailing-twelve-month cash flow figures, are taken from the fiscal third quarter 2026 results announcement furnished on Form 8-K (accession 0001327567-26-000012); each of those periods carries that accession in cash_flow_source_accession.
  • Fiscal 2023 carries no balance sheet: the 10-K's balance sheet presents July 31, 2025 and July 31, 2024 only. The year-ago third quarter carries no balance sheet: the 10-Q's balance sheet presents April 30, 2026 and July 31, 2025 only.
  • Capital expenditures are the line the company calls 'purchases of property, equipment, and other assets' and are shown here as cash outflows (negative). Free cash flow is the company's own definition: cash provided by operating activities less those purchases.
  • The company had no borrowings outstanding at July 31, 2025. The convertible senior notes on the April 30, 2026 balance sheet ($160 million current and $1,192 million long-term, $1,352 million in total, reported here as total debt) were assumed with the acquisition of CyberArk Software Ltd. and are carried at fair value. At July 31, 2024 the balance sheet carried $963.9 million of convertible senior notes, net.
  • Total deferred revenue is the sum of the current and long-term deferred revenue lines on the balance sheet: $13,605 million at April 30, 2026, $12,751.9 million at July 31, 2025 and $11,480.5 million at July 31, 2024.
  • Palo Alto Networks completed the acquisition of Chronosphere, Inc. in January 2026, of CyberArk Software Ltd. on February 11, 2026 and of Koi Security Ltd. on April 14, 2026. CyberArk was paid for largely in stock: 112 million shares valued at $18,488 million were issued in the third quarter, which is why goodwill rose from $4,567 million at July 31, 2025 to $21,902 million at April 30, 2026, intangible assets from $763 million to $7,283 million, shares outstanding from 668 million to 813 million and total stockholders' equity from $7,824 million to $27,668 million. The company states that $388 million of third-quarter revenue came from CyberArk and Chronosphere.
  • The GAAP operating loss of $183 million and net loss of $177 million in the third quarter of fiscal 2026 sit alongside 31% revenue growth because the quarter absorbed $280 million of amortization of acquired intangible assets, $198 million of acquisition-related costs and $517 million of share-based compensation-related charges, as set out in the company's own reconciliation. The same reconciliation gives the year-ago quarter, when GAAP operating income was $219 million, as $43 million of amortization of acquired intangible assets, $7 million of acquisition-related costs and $355 million of share-based compensation-related charges: amortization and acquisition-related costs are the lines the acquisitions added, while share-based compensation is a standing charge that was already the largest of the three a year earlier.
  • Non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, adjusted free cash flow and adjusted free cash flow margin are the company's measures, taken from the reconciliation tables in the fiscal third quarter 2026 results announcement (accession 0001327567-26-000012). The company excludes share-based compensation-related charges, acquisition-related costs, amortization of acquired intangible assets, litigation-related charges, changes in the fair value of convertible notes and capped calls, and related income tax adjustments.
  • Next-Generation Security annualized recurring revenue and remaining performance obligations are the company's own operating metrics, reported in billions to one decimal place: $8.1 billion and $18.4 billion at April 30, 2026, $5.6 billion and $15.8 billion at July 31, 2025, and $4.2 billion and $12.7 billion at July 31, 2024.
  • For the third quarter of fiscal 2026 the company states that Next-Generation Security ARR grew 60% year over year, and that $1.6 billion of it came from CyberArk and Chronosphere, and that remaining performance obligations grew 36% year over year, with $1.8 billion from CyberArk and Chronosphere (accession 0001327567-26-000012). Those growth rates are the company's own; neither year-ago level is printed in the filings used here, so no year-ago balance is reported.
  • Fiscal 2024's income tax line is a benefit of $1,589.3 million rather than an expense, shown here as a negative provision. The company attributes it primarily to the release of its valuation allowance on U.S. federal, U.S. state (other than California) and U.K. deferred tax assets. That benefit is why fiscal 2024 net income of $2,577.6 million exceeds fiscal 2025 net income of $1,133.9 million even though revenue and operating income both grew.
  • The trailing-twelve-month income-statement lines are derived: fiscal 2025 plus the nine months ended April 30, 2026 less the nine months ended April 30, 2025. The trailing-twelve-month cash flow lines are printed as such in the results announcement and are not derived.

Uncertainties

  • The trailing-twelve-month income-statement figures combine a fiscal year reported to the nearest $0.1 million with nine-month columns reported to the nearest $1 million, so they are reliable to roughly plus or minus $1 million rather than to the decimal shown.
  • Combining the same columns for capital expenditures gives $423.2 million against the $424 million printed in the results announcement; the printed figures ($424 million of capital expenditures and $3,793 million of free cash flow) are what is reported here, so the trailing-twelve-month cash flow ties exactly to the company's own table.
  • Third-quarter operating cash flow, capital expenditures and free cash flow, for both fiscal 2026 and fiscal 2025, come from a results announcement whose tables are labelled preliminary and unaudited and are rounded to whole millions. They are not restated in the 10-Q, which presents nine-month cash flows only.
  • No balance sheet is reported for fiscal 2023 or for the third quarter of fiscal 2025, because neither filing presents one for those dates.
  • Total deferred revenue and total debt are sums of lines printed on the balance sheet rather than subtotals the company itself strikes.
  • The 10-Q reports remaining performance obligations of $18.4 billion at April 30, 2026 against $15.8 billion at July 31, 2025; the results announcement separately describes 36% year-over-year growth, which implies a figure near $13.5 billion at April 30, 2025. That year-ago balance is not printed in either filing used here and is therefore not reported.

Company details

Value
NamePalo Alto Networks Inc
TickerPANW
CIK0001327567
ExchangeNasdaq
StateCalifornia
IncorporationDelaware
SIC3577
OfficeTechnology
IndustryComputer Peripheral Equipment, NEC

Fiscal period

FY2026
Fiscal year2026
Fiscal periodQ3
TagFY26Q3
Period end2026-04-30
Form10-Q
Accession0001327567-26-000015
Fiscal year end0731
Sourcefacts

FAQ · Palo Alto Networks financial statements

How much revenue did Palo Alto Networks report in Q3 FY2026?

Palo Alto Networks reported $3.00 billion in revenue for Q3 FY2026, the quarter ended April 30, 2026. That is up 31.1% from $2.29 billion in the same quarter a year earlier, with the acquired identity security and observability businesses accounting for more than half of the increase.

Why did Palo Alto Networks report a loss in Q3 FY2026?

Palo Alto Networks posted a net loss of $177 million in Q3 FY2026 against net income of $262 million a year earlier, because the quarter absorbed amortization of acquired intangible assets and acquisition-related costs from the CyberArk acquisition it completed during the quarter. Excluding those charges and share-based compensation, non-GAAP operating income was $814 million, up 29.8%, against a GAAP operating loss of $183 million.

What was Palo Alto Networks' earnings per share in Q3 FY2026?

Palo Alto Networks reported a loss of $0.22 per diluted share in Q3 FY2026, the quarter ended April 30, 2026, having swung from $0.37. The swing came from the amortization of acquired intangible assets and acquisition-related costs the company took on when it completed the CyberArk acquisition during the quarter, rather than from deterioration in the underlying business.

What is Palo Alto Networks' Next-Generation Security ARR?

Next-Generation Security annualized recurring revenue stood at $8.1 billion at April 30, 2026, the end of Q3 FY2026. It is the company's own operating metric, covering the annualized allocated revenue of active product, subscription and support contracts excluding hardware and legacy attached subscriptions, and it now includes the offerings added with the CyberArk and Chronosphere acquisitions.

Where can I get Palo Alto Networks, Inc. (PANW) financial data in machine-readable form?

Ticker Scout publishes Palo Alto Networks, Inc.'s financial statements as JSON at https://tickerscout.ai/panw/financials.json, free, with no API key and no signup. The 10-K and 10-Q narrative and the 8-K events digest are published as Markdown at https://tickerscout.ai/panw/narrative.md and https://tickerscout.ai/panw/events.md. Palo Alto Networks, Inc.'s SEC CIK is 0001327567. Every figure cites the SEC accession number it came from, so it can be checked against sec.gov.

When does Palo Alto Networks, Inc. (PANW) next file with the SEC?

Palo Alto Networks, Inc. (PANW) is due to file its next Form 10-K with the SEC. The projected date, September 4, 2026, has passed, which means the filing is due or overdue rather than already reported here. That date is a projection rather than a company-announced date: it is derived from Palo Alto Networks, Inc.'s own filing history with the SEC, by taking the date the company filed the same fiscal period a year earlier and adding 52 weeks. The most recent periodic report on file is the 10-Q for Q3 FY2026, the period ended 2026-04-30, SEC accession 0001327567-26-000015.

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How this page was built

This page was built from three of Palo Alto Networks, Inc.'s own filings with the SEC, read one at a time. Nothing on it is taken from a pre-tagged dataset, a data vendor or another website. The figures are on the company's own fiscal calendar and in actual dollars, as the filings report them. Where the filings do not support a figure, the record says so instead of reporting a zero; this period names six such gaps.

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