Palo Alto Networks Inc

Q4 + full-year outperformance & key scale metrics (good / surprising): - Q4 exceeded guidance across every financial metric and showed bookings momentum accelerating for the 2nd straight quarter (pro forma). - RPO (remaining performance obligations): exceeded $20B for the first time, ending FY26 at $21.2B (+34% YoY); current RPO $9.3B (+34%). - Next-Gen Security ARR (NGS ARR): Q4 reached $9.1B (+63% YoY) with nearly $1B of net-new NGS ARR in Q4 (rare milestone). - GSARR: $9.1B (+63%), and platformization momentum supports retention/expansion (see next bullet).

Platformization is the growth engine (good): - Record platformization adoption in Q4: ~22 net new platformizations, above prior record and >2x vs the start of the metric ~2 years ago. - Retention/expansion signal: NRR >120% for the platformized cohort in Q4. - Target: remains on track for >4,000 platformizations by FY2030, supporting the long-term $20B NGS ARR objective. - Examples of big wins (customer validation): ~$126M telecom network security + Prisma Access SASE displacement; ~$72M IT services provider across multiple modules; ~$53M payments platform with additional Prism AIRS investment.

Product momentum across platforms (good): - Network + AI security revenue: FY26 $8.35B (+17%); continued strength in SASE, software firewall, and latest Gen 5 hardware. - Prisma AIRS: surpassed $100M ARR within 4 quarters of GA (fastest scaling in company history); now 800+ customers, and larger deals increasingly include multi-module adoption. - XSIAM (Cortex platform driver): Q4 70% ARR growth and $700M+ ARR, 700M+ described; XSIAM is positioned as the “central nervous system” enabling faster response. - SASE displacement: reported nearly 100 accounts displaced legacy incumbents (over $400M total contract value).