Palo Alto Networks reports strong Q4 FY2026 earnings with record growth, but faces margin concerns

Palo Alto Networks (NASDAQ: PANW) announced its fiscal fourth-quarter 2026 earnings, reporting adjusted earnings per share (EPS) of $1.02, exceeding the consensus estimate of $0.98. Total revenue for the quarter increased 34% year-over-year to $3.41 billion, also surpassing estimates of $3.35 billion. Next-Generation Security (NGS) annual recurring revenue (ARR) grew 63% year-over-year to $9.10 billion. Despite the strong growth, the company faces margin concerns.