Palo Alto Networks is the largest standalone cybersecurity company — firewalls plus cloud and AI security.
Palo Alto Networks, Inc. (PANW) reported Q3 FY26 results on September 1, 2026. Earnings per share came in at $1.02 against a $0.98 consensus, so the company beat on the bottom line. Revenue of $3.41B landed above the $3.35B estimate. PANW has beaten consensus EPS in 7 of its last 8 reported quarters. Highlights from management's remarks on the call are below.
Key highlights from the call
Chief Financial Officer (CFO): “We delivered a record Q3 with broad-based demand across our platforms and geographies.”
Analyst, Barclays: “Maybe the question is, can you talk about how much AI data center demand is contributing to that?”
Chairman and Chief Executive Officer (CEO): “I thought you're going to ask me about the 40% free cash flow question you mentioned on CNBC.”
Chairman and Chief Executive Officer (CEO): “And you're seeing that demand fall through to some of the hardware vendors in the space.”
Chairman and Chief Executive Officer (CEO): “I'm going to have Lee talk about all the capabilities we've built in the last 12 months, which have allowed us to provide all the security capabilities that AI needs.”
What moved the stock
Palo Alto Networks reported EPS of $1.02 against the $0.98 consensus, with revenue of $3.41B topping the $3.35B estimate. The earnings call highlighted record remaining performance obligation above $20B and next-gen security ARR growth of 63%, and coverage framed the print as further evidence of AI-driven demand in cybersecurity.