Overview

• Cybersecurity firm's fiscal Q3 revenue rose 31% yr/yr to $3 bln

• Adjusted EPS for fiscal Q3 increased to $0.85

• Company posted GAAP net loss of $177 mln for the quarter

Outlook

• Palo Alto Networks sees Q4 revenue of $3.345 bln to $3.355 bln

• Company expects Q4 diluted non-GAAP EPS of $0.96 to $0.98

• Palo Alto Networks forecasts FY26 revenue of $11.415 bln to $11.425 bln

Result Drivers

• AI-DRIVEN DEMAND - Co said accelerating organic bookings growth was driven by customers seeking to secure AI deployments at scale

• PLATFORM GROWTH - Co reported strong growth across each of its platforms, reflected in 60% yr/yr growth in Next-Generation Security ARR

• ACQUISITION IMPACT - Revenue and ARR included contributions from CyberArk and Chronosphere acquisitions

Company press release: ID:nPnbsnKB6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue		$3.00 bln
Q3 Adjusted EPS		$0.85
Q3 EPS		-$0.22
Q3 Net Income		-$177 mln
Q3 Operating Income		-$183 mln
Q3 Pretax Profit		-$156 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Palo Alto Networks Inc is $232.50, about 22.6% below its June 1 closing price of $300.48

• The stock recently traded at 77 times the next 12-month earnings vs. a P/E of 39 three months ago

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