Palo Alto Networks Revenue Rises 31% to $3B but EPS Grows Just 6%, Beats Estimates

Palo Alto Networks reported fiscal 2026 third-quarter revenue of $3 billion, a 31% increase from the same quarter a year earlier. 94 billion. Adjusted earnings per share came in at 85 cents, up 6% year over year and above the LSEG consensus of 80 cents.

Shares traded roughly flat but volatile in after-hours trading. The stock is up about 61% for the year and 85% since the end of March. The company increased its share buyback authorization by $1 billion in February.

CEO Nikesh Arora purchased $10 million of shares in late March when the stock traded in the $140s. Palo Alto Networks announced a $25 billion acquisition of CyberArk in late July. Management said the deal is far ahead of plan one quarter after closing.

The company said it held over 800 customer meetings in the last six weeks. Arora noted that Palo Alto held 1,200 customer meetings for all of last year. Arora said on the earnings call that models like Mythos have been a game changer.

He stated that the industry has entered an era of truly cyber capable systems where models possess the autonomous capability to execute comprehensive attack campaigns from start to finish. Arora said this represents a fundamental paradigm shift for the cybersecurity industry.

He added that rapid AI advancements like Mythos may have increased the terminal value of the entire cybersecurity industry.

Project Glasswing was launched in early April by Anthropic and several major partners. The initiative addresses risks tied to users of Anthropic's frontier model Claude Mythos. The company's last buy recommendation was issued on Nov.

15, 2023.