Palo Alto Networks Q4 FY2026 slides: record growth, margin concerns

Palo Alto Networks released its Q4 2026 earnings on September 1, 2026, reporting a record quarter with revenue of $3.41 billion, marking a 34% year-over-year increase. The company's Next-Generation Security Annual Recurring Revenue (NGS ARR) surged to $9.10 billion, growing 63% year-over-year, bolstered by strong performance from its platformization strategy and AI-driven demand.

Despite surpassing all key metrics, investor concerns centered around margin compression due to rising cloud hosting and hardware costs, leading to a 5.25% stock drop during the regular session and a further 1.78% decline in after-hours trading.