Palo Alto Networks Hits $11.4B Revenue Run Rate With 60% ARR Growth

Palo Alto Networks Reaches $11.4B Revenue

Palo Alto Networks reached an $11.4 billion revenue run rate. Next-Gen Security ARR stood at $8.13 billion, up 60% according to SaaStr. Platformized customers reached approximately 2,280 with 120% net revenue retention. Total revenue for the quarter ended April 30 came to $3.0 billion, up 31%.

Acquisition Details and Market Reaction

Palo Alto Networks completed a $25 billion acquisition of CyberArk in February 2026. The company also acquired Chronosphere for $3.35 billion in January 2026. The stock fell after the announcements and cut in EPS guidance before recovering to double from its February low of $139.57.

The company spent about $29 billion on acquisitions in twelve months. It took a GAAP loss and diluted shareholders by roughly 14%. The stock later hit an all-time high of $368.80 in July and the market cap reached approximately $265 billion.

ARR and Retention Metrics

Next-Gen Security ARR grew 60% overall and 28% organically. Remaining performance obligations reached $18.4 billion, up 36%. Adjusted free cash flow margin stood at 38.5% on a trailing twelve-month basis. SASE ARR reached $1.6 billion, growing 40%. Cortex ARR exceeded $600 million, growing 100%.

Broader Financial Context

Network security accounted for about 70% of total revenue. Hardware represented roughly 10% of revenue. The company reported roughly 70,000 customers and 16,000 employees. FY26 revenue guidance was set at $11.42 billion, up 24% according to SaaStr.