Palo Alto Networks Inc

Palo Alto Networks Inc

PANW

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Market Cap$191.97B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Palo Alto Networks IncPalo Alto Networks Inc152.7-14%200.7

Earnings Call Q3 2026

June 2, 2026 - AI Summary

Record Q3 performance + major beats (growth, ARR, RPO) - Palo Alto Networks delivered a record Q3 that surpassed all guided metrics. - NGS ARR: $8.13B, +60% YoY, described as the company’s most significant quarterly outperformance to date. - RPO: $18.4B, +36% YoY (ex-“CyberArk & Chronosphere impact,” RPO still +22% YoY), indicating strong forward demand. - Organic NGS ARR and RPO: +28% and +22% YoY respectively, highlighting that the outperformance is not purely acquisition-driven. - Demand drivers (management view): accelerated organic bookings, platformization tailwinds, and “surging cybersecurity needs” as AI moves from experimentation to production.
Product/platform momentum (especially Network Security + Prisma AIRS + platformization) - Network Security (largest segment; ~70% of revenue) had its strongest Q3 in years with support from hardware, SASE, and software firewalls. - Next-generation firewall bookings: ~+40% YoY, strongest hardware performance in a decade; early AI data center build-outs contributed to record backlog. - SASE ARR: $1.6B, +40% YoY; management highlights nearly 50% increase in SASE net new NGS ARR (trailing 12 months). - Prisma AIRS became the fastest-scaling product ever: 300+ customers in Q3 (up from ~100 at end of Q2), with confidence it’s becoming foundational for secure AI deployment. - Platformization: 110 net new platformizations in Q3 (includes 20 from CyberArk/Chronosphere). Total platformized customers ended Q3 at ~2,280; management cites 120% net retention and single-digit churn in this cohort.
Guidance raised (Q4 and full-year FY2026) + key forward expectations - Management raised full-year FY2026 guidance due to accelerating organic bookings, early acquisition integration progress, and a strong Q4 pipeline. - Q4 FY2026 outlook: - NGS ARR: $8.9B–$8.95B (+59% to +60%) - RPO: $20.9B–$21.0B (+32% to +33%) - Revenue: $3.345B–$3.355B (+32% YoY) - Non-GAAP diluted EPS: $0.96–$0.98 - FY2026 outlook: - NGS ARR: $8.9B–$8.95B (+59% to +60%) - RPO: $20.9B–$21.0B (+32% to +33%) - Revenue: $11.415B–$11.425B (+24% YoY) - Operating margin: 28.9%–29.2% - Adjusted free cash flow margin: 37.5% - Strategic targets (longer-term): management reiterated confidence in >4,000 platformizations by FY2030 and a path toward $20B NGS ARR.

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$228.03

Target Price by Analysts

18.7% downsidePalo Alto Networks Target Price DetailsTarget Price
$188.13

Current Fair Value

32.9% downside

Overvalued by 32.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$191.97 Billion
Enterprise Value$194.44 Billion
Dividend Yield$- (-)
Earnings per Share$1.71
Beta0.77
Outstanding Shares695,000,000

Return

Return on Equity13.65%ROE
Return on Assets5.13%
Return on Invested Capital10.11%

Valuation & Multiples

P/E Ratio152.72P/E Ratio
PEG247.86PEG
Price to Sales20.03Price to Sales
Price to Book Ratio21.57Price to Book Ratio
Enterprise Value to Revenue19.65
Enterprise Value to EBIT113.36
Enterprise Value to Net Income151
Total Debt to Enterprise0.03
Debt to Equity0.7Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
June 2, 2026
EPS Estimate
$0.80
Average shareholder expectation
Revenue Estimate
$2.94 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 17, 2026
EPS Estimate
$0.96
Average shareholder expectation
Revenue Estimate
$3.29 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.0464▼ 30.92%
Total Calls18,229,211▲ 17.18%
Total Puts19,075,861▼ 9.54%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %90.16%▲ 7.30%
Total Invested$100.35B▼ 3.20%
Investors Holding2,546▼ 70.00%

ESG Score

No data

About Palo Alto Networks Inc

CEO: Nikesh Arora

Relevant Senate Committees

Appropriations

Allocates discretionary federal spending, directly determining the budgets for government agencies and defense programs that procure significant cybersecurity solutions from companies like PANW.

Armed Services

Oversees the Department of Defense and authorizes the NDAA, directly influencing funding for military cybersecurity initiatives and procurement, making the DoD a major client for PANW.

Banking, Housing, and Urban Affairs

Regulates the financial system (e.g., SEC, Fed), which has stringent cybersecurity requirements and data protection mandates, directly impacting demand and compliance for PANW's services in this critical sector.

Select Committee on Intelligence

Oversees the Intelligence Community and receives classified briefings on cyber threats, directly informing national security priorities and government contracts for cybersecurity solutions like PANW provides.

Commerce, Science, and Transportation

Regulates interstate commerce, data privacy (FTC oversight), and technology standards, directly impacting cybersecurity requirements and the regulatory environment for tech companies like PANW.

Homeland Security and Governmental Affairs

Regulates government procurement and critical infrastructure protection, a primary domain for cybersecurity firms like PANW. Directly influences federal contracts and cybersecurity mandates.