Palo Alto stock pops on strong 2026 guidance

Palo Alto Networks beat Q4 estimates and issued above-consensus fiscal 2026 guidance as it expands with the CyberArk acquisition.

Palo Alto stock rises on strong 2026 guidance tied to CyberArk deal

Palo Alto Networks reported fiscal Q4 earnings that beat expectations, posting adjusted earnings of 95 cents per share on revenue of $2.5 billion. Annual recurring revenue rose 32% to $5.6 billion, and the company raised its fiscal 2026 revenue outlook to between $10.47 billion and $10.52 billion, above the consensus of about $10.42 billion. Q4 RPO climbed 24% to $15.8 billion, and Palo Alto projected RPO of about $18.65 billion for 2026.

Beyond the numbers, Palo Alto is reshaping its portfolio. It has moved from firewall hardware toward a cloud security platform that includes security operations, endpoint protections, and SASE. The planned CyberArk acquisition, valued at around $25 billion, would add identity security to the mix and is expected to close in 2026. After the earnings release, the stock rose more than 5% in extended trading, rebounding from a 2025 decline tied to the deal.

Taken together, the numbers reflect a company steering growth through a broader product mix and a major acquisition. The CyberArk deal expands Palo Alto beyond firewalls into identity security and cross-sell opportunities in cloud security. The challenge lies in integration and delivering the promised margins while absorbing deal-related costs.

Analysts and investors will watch how the integration unfolds and whether the revenue target translates into durable profits. The shift toward remaining performance obligations marks a change in growth measurement, a move investors will scrutinize as the CyberArk deal closes. If the plan succeeds, Palo Alto can extend its revenue runway in a competitive market; if not, the stock will face renewed scrutiny.

Highlights

The next quarters will test whether this growth path stays on track.