Overview
- Palo Alto reported fiscal Q2 results ahead of expectations, with non-GAAP EPS of $1.03 on revenue of $2.59 billion.
- The company cut its fiscal 2026 adjusted EPS outlook to $3.65–$3.70 and guided Q3 EPS to 78–80 cents, below roughly 92 cents expected by analysts.
- Management raised full-year revenue guidance to $11.28–$11.31 billion, reported remaining performance obligations of $16 billion, and cited 33% growth in next‑gen security ARR.
- Shares fell about 6%–8% in after-hours and pre-market trading following the softer profit guidance tied to higher deal and integration expenses, which rose to roughly $24 million in Q2.
- Palo Alto closed major deals for CyberArk and Chronosphere and announced the purchase of Koi as part of a platform push, with analysts at firms including Wedbush, BTIG, TD Cowen, and Morningstar pointing to AI-driven demand but highlighting execution risk.