# Palo Alto Networks Stock Q3 2026: NGS ARR Up 63% to $9.1bn as Revenue Grows 34%
> Palo Alto Networks stock Q3 2026: fiscal Q4 revenue up 34% to $3.41bn, NGS ARR up 63% to $9.1bn after CyberArk, FY2027 guide of $14.1-14.2bn. PANW risks.

Agent brief for this QSI Labs research article. Prefer this file for quick facts; use the HTML page for the full human layout, or article.md for the full text.

## Facts
- Ticker: PANW
- QSILabs fair value: $84.44 USD
- Price: $365.87 (as of 2026-10-30)
- As of: Fiscal Q4 FY2026 results (quarter ended 2026-07-31, reported 2026-09-01) and FY2026 10-K; price as of 2026-10-30 close
- Fiscal period: fiscal Q4 FY2026
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark/

## Short answer
Palo Alto Networks stock Q3 2026 rests on the company's fiscal Q4 FY2026, the quarter to 31 July 2026: revenue rose 34% to $3.41bn, Next-Generation Security annualised recurring revenue (NGS ARR) rose 63% to $9.10bn and remaining performance obligations rose 34% to $21.2bn, lifted by the CyberArk and Chronosphere acquisitions. GAAP operating income fell to $172m as share-based pay and amortisation of acquired intangibles grew, while non-GAAP operating income rose 32% to $1.01bn. Palo Alto Networks guided fiscal 2027 revenue to $14.10-14.20bn and non-GAAP EPS to $4.16-4.19. Our discounted cash flow model values PANW at $84.44 a share, against a $365.87 close on 30 October 2026. The business is growing fast and generates plenty of cash; the share price assumes that growth and a much wider GAAP margin arrive sooner and last longer than we expect.

## Key takeaways
- Revenue up 34%. Fiscal Q4 FY2026 revenue was $3,410m, up from $2,536m a year earlier. Subscription and support revenue rose 36% to $2,672m; product revenue rose 29% to $738m. Fiscal 2026 revenue was $11,480m, up 24.5%.
- NGS ARR of $9.10bn. Next-Generation Security ARR rose 63%, and the company added nearly $1bn of net new NGS ARR in the quarter. Chief executive Nikesh Arora cited a target of $20bn of NGS ARR in fiscal 2030.
- Acquisitions did much of the work. CyberArk ($21.1bn) and Chronosphere ($3.0bn) were consolidated from late January and February 2026. On a pro forma basis, as if all three companies had been combined throughout, fiscal 2026 revenue would have grown 17.4%, to $12,312m.
- GAAP profit fell, non-GAAP profit rose. GAAP operating income fell 65% to $172m, a 5.0% margin; non-GAAP operating income rose 32% to $1,011m, a 29.6% margin. The quarter ended with a GAAP net loss of $282m, or $0.35 a share, after a $524m non-cash charge on convertible notes.
- Cash flow is strong. Fiscal 2026 operating cash flow was $4,553m and adjusted free cash flow $4,414m, a 38.4% margin. Share-based compensation was $1,774m, 15.5% of revenue.
- Guidance. Fiscal Q1 FY2027 revenue of $3.300-3.310bn (+33-34%); fiscal 2027 revenue of $14.10-14.20bn (+23-24%), NGS ARR of $11.075-11.175bn, a non-GAAP operating margin of 29.5% and an adjusted free cash flow margin of 38%.
- Our value: $84.44 a share, about 77% below the $365.87 close on 30 October 2026. A two-stage cross-check gives $88.26; analysts' average target is $398.52.
- What to watch. Fiscal Q1 FY2027 results, for the quarter to 31 October and expected in November, will show whether NGS ARR reaches the $9.54-9.56bn guided and how fast GAAP margins recover as acquisition costs fade.

## Full versions
- [HTML](https://www.quantitativesuperintelligencelabs.com/research/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark/)
- [Markdown](https://www.quantitativesuperintelligencelabs.com/research/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark/article.md)
- [PDF](https://www.quantitativesuperintelligencelabs.com/research/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark.pdf)
- [This agent brief](https://www.quantitativesuperintelligencelabs.com/research/palo-alto-networks-stock-q3-2026-earnings-ngs-arr-cyberark/llms.txt)

Publisher: QSI Labs (Quantitative Super Intelligence Labs)
Site index: https://www.quantitativesuperintelligencelabs.com/llms.txt