Palo Alto Networks (NASDAQ:PANW) delivered a blowout Q4 for fiscal 2026, with total revenue rising 34.3% year over year to $3.41 billion, beating expectations. Total RPO reached $21.2 billion, up 34% year over year, while Next-Generation Security (NGS) ARR reached $9.1 billion, surging 63% year over year and adding nearly $1 billion in net new ARR in Q4 alone. Non-GAAP operating income reached $1.01 billion, delivering a non-GAAP operating margin of 29.6%, while adjusted free cash flow reached $1.29 billion, expanding full-year FCF margin to 38.4%.
Platformization execution drove acceleration across the portfolio. Palo Alto Networks added ~220 net new platformized accounts in the quarter, doubling the volume from two years ago, with Net Revenue Retention (NRR) for the platformized customers exceeding 120%. Standout transaction highlights included a $126 million agreement with a global telecom leader, a $72 million cross-sell deal with a premier IT provider, and a $53 million deal with a global payments platform. In SASE, bookings grew 40% year over year, displacing legacy incumbents across nearly 100 accounts representing over $400 million in Total Contract Value (TCV).
The integration of recent major acquisitions continues to run ahead of schedule. Pro forma revenue for Idira (CyberArk) reached $1.26 billion in FY26, growing 21% with $5M+ TCV deals up 50% year over year in Q4. Chronosphere and the Observability platform doubled ARR post-acquisition to over $500 million, propelled by XSIAM cross-sell which generated 50% of net new Chronosphere logos. Combined ARR across XSIAM and Observability now exceeds $1.0 billion, while Prisma AIRS surpassed $100 million in ARR within four quarters of general availability.
Despite strong operational performance, cost dynamics and margin headwinds presented clear watch items. Total gross margin compressed 1 full percentage point year over year to 74.8% in Q4, driven by a mix shift toward fast-growing, cloud SaaS offerings and persistent memory and storage commodity cost inflation in the hardware business. Management explicitly noted that cloud hosting costs will outpace total revenue growth in fiscal 2027.
Here is the high-level summary card covering key figures and guidance.
