Palo Alto Networks Inc

Strong Revenue Growth: Palo Alto Networks reported Q3 total revenue of $2.29 billion, a 15% year-over-year increase, with product revenue growing 16% and total services revenue up 15%. This growth reflects sustained demand across all geographical regions, particularly in EMEA and JAPAC which grew 20% and 23% respectively.

Next-Generation Security (NGS) ARR Milestone: The company surpassed $5 billion in NGS ARR, growing 34% year-over-year, indicating strong market demand for its AI-powered security solutions like XSIAM, SASE, and software firewalls, which are helping drive larger deals and a shift away from traditional IT architectures.

Profitability and Cash Flow: Palo Alto Networks generated $578 million in adjusted free cash flow, with an adjusted free cash flow margin expected to exceed 37% in FY '26 and '27. The total gross margin for Q3 was 76%, with product gross margin at 78.4%, showcasing operational efficiency and cost management.