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Palo Alto Networks Inc 8-K Report, Financial Results (Feb 17, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 17, 2026
Period End
February 17, 2026
Security
PANW
In the record · 2016–202610-K1110-Q328-K110

PANW filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’20Jun ’20
  2. Leadership change8-K · Dec ’22Dec ’22
  3. Leadership change8-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 8-K filed February 17, 2026. Cited figures are marked; the original filing is the authoritative source.

Palo Alto Networks reported fiscal second quarter 2026 results (quarter ended January 31, 2026) with total revenue up 15% year over year to $2.594 billiona and GAAP net income of $432 million, or $0.61 per diluted share, versus $267 million ($0.38) a year earlier.

Non-GAAP net income rose to $732 millionb, or $1.03 per diluted share, from $0.81. Non-GAAP operating margin was 30.3%, the company's third straight quarter above 30%. Next-Generation Security ARR grew 33% to $6.3 billion and remaining performance obligation grew 23% to $16.0 billion.

Management attributed demand to platformization and AI security adoption, and noted that the CyberArk and Chronosphere acquisitions are now closed and being integrated. The guidance step-up is driven largely by acquisitions, which investors should weigh carefully. Fiscal Q3 2026 revenue is guided to $2.941c-2.945 billion (28-29% growth), and full-year fiscal 2026 revenue to $11.28-11.31 billion (22-23% growth).

Next-Generation Security ARR is guided to grow 53-54% for the year to $8.52d-8.62 billion. The company also guided full-year non-GAAP operating margin of 28.5-29.0% and adjusted free cash flow margin of 37%. Because the acquisitions add revenue, share count, and integration costs, the headline growth rates overstate organic momentum, and the reported figures are preliminary and unaudited.

Balance sheet activity reflects the acquisitions. Goodwill rose to $6.93 billion from $4.57 billion and intangible assets to $1.25 billion from $0.76 billion. Cash and equivalents increased to $4.16 billion from $2.27 billion, while accounts receivable fell to $2.12 billion from $2.97 billion.

Total deferred revenue was roughly $12.4 billion, down modestly from $12.8 billion at fiscal year-end. Diluted weighted shares rose to 711 million in the quarter from 709 million, and basic shares rose to 704 million from 659 million.

Share-based compensation of $321 million remains a significant gap between GAAP and non-GAAP earnings. The filing is furnished under Item 2.02 and is not deemed filed for Exchange Act liability purposes.

02—Key points

Key Highlights

  1. Fiscal Q2 2026 total revenue grew 15% year over year to $2.594 billion, with subscription and support revenue at $2.080 billion, up from $1.836 billion.
  2. GAAP net income was $432 million ($0.61 per diluted share), up from $267 million ($0.38), while non-GAAP net income was $732 million ($1.03 per diluted share), up from $0.81.
  3. Non-GAAP operating margin reached 30.3%, extending a third consecutive quarter above 30%; GAAP operating income was $397 million versus $241 million a year earlier.
  4. Next-Generation Security ARR grew 33% to $6.3 billion and remaining performance obligation grew 23% to $16.0 billion.
  5. Fiscal 2026 guidance: revenue of $11.28-11.31 billion (22-23% growth), Next-Generation Security ARR of $8.52-8.62 billion (53-54% growth), and non-GAAP operating margin of 28.5-29.0%.
  6. Fiscal Q3 2026 guidance: revenue of $2.941-2.945 billion (28-29% growth) and non-GAAP EPS of $0.78-0.80 on 812-817 million shares, with the diluted share count reflecting acquisition dilution.
  7. Goodwill nearly doubled to $6.93 billion and intangibles rose to $1.25 billion, reflecting the CyberArk and Chronosphere acquisitions; cash and equivalents rose to $4.16 billion.

03—Questions

Frequently Asked Questions

  1. How much of the revenue growth is organic versus driven by acquisitions?

    The filing does not break out organic growth. The press release indicates the CyberArk and Chronosphere acquisitions are now closed and integrated, and the sharp guidance step-up in fiscal Q3 (28-29% growth) versus the 15% reported in Q2 suggests acquired revenue is a major contributor going forward. Investors should look for organic figures in the earnings call or later 10-Q disclosures.

  2. Why is GAAP EPS so far below non-GAAP EPS?

    The gap is mainly share-based compensation-related charges of $321 million in the quarter, plus amortization of acquired intangibles ($38 million) and acquisition-related costs ($24 million). These are partly offset by a tax adjustment of $88 million tied to the company's long-term non-GAAP tax rate. Management argues share-based compensation is a recurring cost, so investors should weigh the non-GAAP figure with caution.

  3. Is the company's deferred revenue and cash position improving?

    Cash and equivalents rose sharply to $4.16 billion from $2.27 billion at fiscal year-end, while total deferred revenue declined modestly to about $12.4 billion from $12.8 billion. Remaining performance obligation of $16.0 billion (up 23%) is a forward indicator of contracted future revenue, though the filing does not show how much of the cash increase reflects operating cash flow versus acquisition financing or investment liquidation.

  4. Does the share count increase materially affect per-share results?

    Yes. Basic weighted shares rose to 704 million from 659 million, and guidance implies diluted shares of 812-817 million in fiscal Q3 versus 711 million in Q2. This higher count, largely from acquisition-related share issuance, will dilute per-share earnings growth even as absolute net income rises, so per-share guidance should be compared against total net income expectations.

04—Continue

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