Palo Alto Networks ended its fiscal 2026 on a high note and signaled that the good times will continue in the new year. The company's fiscal fourth quarter revenue increased 34% year over year to $3.41 billion, exceeding the Wall Street consensus estimate of $3.35 billion. Adjusted earnings per share (EPS) for the May-to-July period totaled $1.02, ahead of the 98-cent consensus estimate.
Shares were down almost 2% in extended trading, though it's tough to say that move is purely a judgment on what Palo Alto delivered. When the earnings release first hit the tape, the stock initially moved higher by a couple of percentage points, only to reverse course before the conference call even got underway.
OpenAI announced that its upcoming AI model, dubbed Astra, breaches certain cybersecurity thresholds.
“We now believe Astra meets the Critical cybersecurity capability threshold under our Preparedness Framework,” OpenAI said.
The results reinforce the essential role of cybersecurity in the artificial intelligence era.
Palo Alto Networks' next-generation security annual recurring revenue (NGS ARR) grew an incredible 63% year-over-year, while total remaining performance obligation (RPO) increased 34%.
“Fiscal 2026 was a transformative year for Palo Alto Networks and the broader industry,” said CEO Nikesh Arora.
