About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Q1 Fiscal Year 2026 Earnings Call November 19, 2025 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information. Safe Harbor This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical or current facts, including, without limitation, statements regarding the cybersecurity threat landscape, our platformization strategy and related progre ...

Core Viewpoint - Palo Alto Networks announced the acquisition of Chronosphere, a cloud management and monitoring company, for $3.35 billion [1] Company Summary - The acquisition aims to enhance Palo Alto's capabilities in cloud management and monitoring, indicating a strategic move to strengthen its position in the cloud services market [1] Industry Summary - This acquisition reflects the growing trend in the technology sector where companies are increasingly investing in cloud management solutions to meet rising demand for cloud services [1]

By Juby Babu (Reuters) -Palo Alto Networks said on Wednesday it will buy cloud management and monitoring company Chronosphere for $3.35 ​billion, as the cybersecurity firm looks to strengthen its AI offerings. The Santa ‌Clara, California-based company plans to integrate Chronosphere with Cortex AgentiX platform, allowing use of its AI ‌agents on the cloud management firm's data to detect performance issues and autonomously investigate their root cause. Palo Alto will pay the deal amount in cash and new ...

Financial Performance - Total revenue for fiscal Q1 2026 increased by 16% year over year to $2.5 billion, compared to $2.1 billion in fiscal Q1 2025[2] - Non-GAAP net income for fiscal Q1 2026 was $662 million, or $0.93 per diluted share, up from $545 million, or $0.78 per diluted share in fiscal Q1 2025[3] - GAAP operating income for the three months ended October 31, 2025, was $309 million, an increase from $286 million in the same period of 2024[28] - Non-GAAP operating income rose to $746 million, compared to $616 million year-over-year, reflecting a non-GAAP operating margin of 30.2%, up from 28.8%[28] - GAAP net income decreased to $334 million from $351 million year-over-year, while non-GAAP net income increased to $662 million from $545 million[28] Revenue Guidance - The company expects total revenue for fiscal Q2 2026 to be in the range of $2.57 billion to $2.59 billion, representing year-over-year growth of 14% to 15%[9] - Guidance for Next-Generation Security ARR for fiscal year 2026 is projected to be between $7.00 billion and $7.10 billion, indicating year-over-year growth of 26% to 27%[9] Cash Flow and Margins - Adjusted free cash flow margin is expected to be in the range of 38% to 39% for fiscal year 2026[9] - Operating margin for fiscal Q1 2026 was over 30%, with a target of achieving over 40% adjusted free cash flow margin by FY'28[4] Assets and Liabilities - Cash and cash equivalents increased to $3,066 million as of October 31, 2025, up from $2,269 million at July 31, 2025[31] - Total current assets decreased slightly to $7,310 million from $7,523 million[31] - Total liabilities decreased to $14,871 million from $15,752 million, indicating improved financial health[31] - Stockholders' equity increased to $8,665 million from $7,824 million, reflecting a strong retained earnings growth from $2,484 million to $2,818 million[31] - Deferred revenue decreased to $6,132 million from $6,302 million, indicating a potential shift in revenue recognition[31] Strategic Initiatives - The company announced its intent to acquire Chronosphere, enhancing its capabilities in observability for the data center era[4] - The company appointed Mark Goodburn to the board of directors and announced the retirement of Mary Pat McCarthy effective January 23, 2026[5] Shareholder Information - The weighted-average shares used to compute diluted GAAP net income per share remained stable at 709 million[28] - The company reported share-based compensation-related charges of $387 million for the latest quarter, up from $315 million in the previous year[28] Performance Obligations - Next-Generation Security ARR grew by 29% year over year to $5.9 billion[5] - Remaining performance obligation increased by 24% year over year to $15.5 billion[5]

Core Viewpoint - Palo Alto Networks has announced its acquisition of Chronosphere for $3.35 billion, aiming to enhance its capabilities in providing real-time observability and remediation solutions for AI-native companies [5]. Group 1: Acquisition Details - The acquisition will be paid in cash and replacement equity awards, with adjustments subject to customary closing conditions and regulatory approvals [5]. - Chronosphere reported an annual recurring revenue (ARR) of over $160 million as of September 2025, with triple-digit year-over-year growth [5]. Group 2: Strategic Importance - The combination of Chronosphere's observability platform and Palo Alto Networks' AgentiX will transform observability from passive monitoring to autonomous remediation, addressing the critical data demands of the AI era [3][4]. - Chronosphere is recognized as a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms, indicating its strong position in the market [4]. Group 3: Market Context - The growth of AI applications necessitates constant uptime and resilience, making real-time observability essential for success [2]. - Chronosphere's architecture is designed to handle vast cloud data volumes efficiently, which is crucial for modern AI workloads [2].

Core Insights - Palo Alto Networks reported a total revenue of $2.5 billion for fiscal Q1 2026, reflecting a 16% year-over-year growth compared to $2.1 billion in fiscal Q1 2025 [2] - The company achieved a GAAP net income of $334 million, or $0.47 per diluted share, down from $351 million, or $0.49 per diluted share in the same quarter last year [2] - Non-GAAP net income for the same period was $662 million, or $0.93 per diluted share, compared to $545 million, or $0.78 per diluted share in fiscal Q1 2025 [3] Financial Performance - Total revenue increased by 16% year-over-year to $2.5 billion [2] - GAAP net income decreased to $334 million from $351 million year-over-year [2] - Non-GAAP net income rose to $662 million from $545 million year-over-year [3] - Next-Generation Security Annual Recurring Revenue (ARR) grew 29% year-over-year to $5.9 billion [6] - Remaining performance obligation increased by 24% year-over-year to $15.5 billion [6] Strategic Initiatives - The company announced its intent to acquire Chronosphere, enhancing its capabilities in observability for data centers [4] - Strategic acquisitions, including CyberArk and Chronosphere, are expected to strengthen Palo Alto Networks' position in the AI-driven security landscape [4] - The appointment of Mark Goodburn to the board of directors and the retirement of Mary Pat McCarthy were also announced [5] Financial Outlook - For fiscal Q2 2026, Palo Alto Networks expects total revenue in the range of $2.57 billion to $2.59 billion, representing a year-over-year growth of 14% to 15% [7] - The company anticipates Next-Generation Security ARR to be between $6.11 billion and $6.14 billion, indicating a year-over-year growth of 28% [7] - The adjusted free cash flow margin is projected to be between 38% and 39% [8]

Core Insights - Palo Alto Networks announced the appointment of Mark Goodburn to its board of directors and the retirement of Mary Pat McCarthy effective January 23, 2026 [1][2][3] Group 1: Board Changes - Mark Goodburn will join the Audit Committee as chair and the Security Committee, bringing decades of experience in global advisory and technology [2] - Mary Pat McCarthy has served on the board since 2016 and will retire for personal reasons, stepping down as chair of the Audit Committee but remaining a member until her retirement [3] Group 2: Company Overview - Palo Alto Networks is recognized as a global leader in AI and cybersecurity, providing comprehensive AI-powered security solutions to over 70,000 organizations worldwide [4] - The company focuses on platformization to streamline security at scale, ensuring that protection fuels innovation [4]

to market on close. Nvidia is not the only tech name reporting after the [music] close today. PaloAlto Networks is set to report its earnings with the street expecting EPS of 89 on revenue of $2.46% billion.Investors will be watching for more insight into its acquisition of Cyber Arc following approval from Cyber Arc shareholders last week as well as several other key metrics that will be very important in their earnings report. But that of course means it's time for Options Corner. Joining us now, Rick Duk ...

Core Viewpoint - Palo Alto Networks Inc. (NASDAQ:PANW) has shown mixed short-term performance with a 5.47% decrease over the past month, while experiencing a slight increase of 0.98% over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1]. Group 1: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance relative to historical earnings and industry standards [5]. - Palo Alto Networks Inc. has a P/E ratio of 125.62, which is significantly higher than the software industry average of 82.75, suggesting that shareholders may expect better performance from the company compared to its peers, or that the stock may be overvalued [6]. - While a lower P/E ratio can indicate undervaluation, it may also reflect weak growth prospects or financial instability, highlighting the need for cautious interpretation of this metric [9][10].