Palo Alto Networks reported fourth-quarter 2025 earnings, with revenue up 16% year-over-year to $2.54 billion. Software firewalls are driving product revenue growth, with a significant shift to software-based form factors. Operating margins exceeded 30% for the first time, showcasing efficient scaling. Company targets 38%-39% adjusted free cash flow margin in fiscal 2026 and 40% or higher with CyberArk by 2028. The CyberArk acquisition expands identity security strategy, positioning the company as a leader in converged network, cloud, and identity security. Management guides for strong revenue growth, next-generation security ARR, and operating margins in fiscal 2026.

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