PANW

AI Research

Q2 2026 revenue $2.6B +15% + 33% NGS ARR growth → PANW platformization gains

Palo Alto Networks reported Q2 FY2026 revenue of $2.6 billion, up 15% year-over-year, with next-generation security (NGS) annual recurring revenue growing 33% to $5.1 billion as enterprises consolidate security vendors onto its platform. The company announced a $1 billion share buyback program and raised full-year guidance, projecting NGS ARR of $5.5-5.6 billion. Risks include intensifying competition from CrowdStrike and Microsoft Defender, which could pressure pricing and win rates in key enterprise segments.