Palo Alto(US:PANW)2025-11-19 21:16Financial 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]