NYSE$PANW

Palo Alto Networks · Q4 2025 earnings

Q4 2025 earnings · · After market close · Investor relations

Briefing

Palo Alto Networks reported strong Q4 2025 results with 16% revenue growth and solid non-GAAP profitability.

Palo Alto Networks delivered $2.54B in revenue for Q4 2025, driven by double-digit growth across its subscription and product segments. Despite a drop in GAAP net income YoY, the company posted strong non-GAAP earnings, reflecting operational efficiency and continued customer demand.

  • Q4 revenue grew 16% YoY to $2.54 billion.
  • Non-GAAP EPS rose to $0.95, up from $0.75 a year ago.
  • Next-Gen Security ARR increased 32% YoY to $5.6 billion.
  • Remaining performance obligations grew 24% YoY to $15.8 billion.

Headline financials

Total Revenue

$2.54B

Previous: $2.19B+15.8%
EPS (adj)

$0.95

Previous: $1.51-37.1%
Next-Gen Security ARR

$5.6B

Previous: $4.24B+32.1%
Remaining Performance Obligation

$15.8B

Previous: $12.7B+24.0%
Net Income

$254M

Previous: $358M-29.0%
Operating Income

$497M

Previous: $238M+108.6%
Gross Profit

$1.86B

Previous: $1.62B+14.9%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$2.54B

Q4 2025+15.8%vs Q4 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $341M total across 1 segment · Q1 2024

  • Product
    $341M+3.4%

Forward guidance

The company expects continued double-digit revenue growth and strong margins in fiscal 2026, supported by its Next-Gen Security portfolio and operating efficiency.

Tailwinds

  • Revenue expected to grow 14% YoY to over $10.5B in FY26.
  • Next-Gen Security ARR projected to grow 26–27%.
  • RPO forecasted to grow 17–18% YoY.
  • Non-GAAP EPS forecasted between $3.75–$3.85.
  • Free cash flow margin expected at 38–39%.

Headwinds

  • GAAP net income continues to be impacted by high share-based compensation.
  • Tax-related adjustments created a sharp drop in GAAP profitability.
  • High litigation and acquisition-related volatility in expenses.
  • Decline in YoY GAAP net income despite revenue growth.
  • Limited guidance on actual headcount or hiring pace.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

+1.4%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+1.7%

Avg return

30 days after

58%

32 / 55 earnings

Positive

+20.2%

Q4 2021

Best reaction

-28.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.9%-11.8%-0.3%
Q1 2026-4.9%-6.8%-6.5%
Q4 2025-1.3%+5.5%+16.8%
Q3 2025-6.9%-4.0%+2.4%
Q2 2025-0.9%+1.6%-9.7%
Q1 2025+2.5%-0.4%-3.7%
Q4 2024+10.1%+5.0%-1.3%
Q3 2024-2.0%+1.2%-0.3%
Q2 2024-28.5%-23.0%-21.5%
Q1 2024-7.2%-0.2%+17.7%
Q4 2023+16.0%+13.5%+15.7%
Q3 2023+6.4%+10.2%+29.7%
Q2 2023+10.9%+10.2%+14.5%
Q1 2023+5.3%+7.9%-5.1%
Q4 2022+10.9%+9.2%-0.0%
Q3 2022+9.1%+8.8%+8.4%
Q2 2022-0.9%+18.2%+29.0%
Q1 2022+3.2%+3.7%+3.2%
Q4 2021+20.2%+25.5%+29.5%
Q3 2021+8.0%+8.8%+10.8%
Q2 2021-4.8%-9.7%-19.1%
Q1 2021+13.5%+12.9%+25.0%
Q4 2020-3.1%-5.4%-11.2%
Q3 2020+1.5%-1.4%-1.6%
Q2 2020-18.9%-24.0%-31.7%
Q1 2020-10.7%-8.0%-6.1%
Q4 2019+6.5%+6.1%+5.7%
Q3 2019-4.8%-8.3%-5.0%
Q2 2019+9.0%+5.0%+1.9%
Q1 2019-2.0%+0.4%+4.3%
Q4 2018+2.4%+5.4%-2.9%
Q3 2018-2.5%-4.7%+0.2%
Q2 2018+4.6%+6.8%+6.9%
Q1 2018+4.7%+5.5%+3.3%
Q4 2017+10.4%+8.5%+8.5%
Q3 2017+18.8%+20.1%+14.4%
Q2 2017-25.2%-24.9%-26.3%
Q1 2017-13.4%-12.3%-21.8%
Q4 2016-5.9%+2.6%+10.3%
Q3 2016-10.9%-10.5%-16.4%
Q2 2016+15.4%
Q1 2016+6.9%
Q4 2015+6.6%
Q3 2015+1.5%
Q2 2015+4.7%
Q1 2015+10.4%
Q4 2014+9.7%
Q3 2014+5.1%
Q2 2014+1.8%
Q1 2014+9.3%
Q4 2013+7.0%
Q3 2013-11.4%
Q2 2013+1.1%
Q1 2013-1.5%
Q4 2012-5.9%
Q3 2012
Q2 2011
Q1 2011
Q4 2011
Q3 2011

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