Palo Alto Networks (PANW) rises in After Hours on Strong Q4 Results and Upbeat Guidance

Palo Alto Networks shares surged after strong Q4 results, beating revenue and EPS estimates. Shares rose 5% in after-hours trading to $185, putting them back in positive territory for the year. The CyberArk deal shouldn’t be seen as a defensive move; Palo Alto is playing offense by adding a leader in identity security.

The company issued upbeat guidance for fiscal 2026. Palo Alto is a best-of-breed company, proving its strength with solid beats across key metrics. The company’s strategic shift towards platformization has led to record-breaking deals, with strong growth from its largest customers.

For fiscal 2026, Palo Alto expects total revenue of $10.48 billion to $10.53 billion, non-GAAP EPS of $3.75 to $3.85, and adjusted free cash flow margin of 38% to 39%. Next-gen security ARR is expected to be $7 billion to $7.1 billion. In Q1, revenue is expected to be $2.45 billion to $2.47 billion, with adjusted EPS of 88 cents to 90 cents. Next-gen security ARR is forecasted to be $5.82 billion to $5.84 billion, and RPO is expected to be $15.4 billion to $15.5 billion.