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Research Alert: Panw Posts Fq3 Beats On Strong Next-gen Solutions Demand; Organic Growth Solid

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

PANW reported Q3 non-GAAP EPS of $0.85, beating consensus by $0.05, while revenue of $3.0B grew 31% Y/Y, exceeding projections by $60M. Results include $388M from CyberArk and Chronosphere acquisitions, with subscription revenue reaching $2.408B (+31% Y/Y) and product revenue of $594M (+31% Y/Y). Next-Generation Security (NGS) ARR growth accelerated significantly to 60% Y/Y, reaching $8.1B, marking substantial acceleration from 33% growth in Q2, driven by customers securing AI deployments at scale and strong platformization momentum. Management raised FY 26 revenue guidance to $11.415B-$11.425B (24% growth) and NGS ARR guidance to $8.90B-$8.95B (59%-60% growth), with non-GAAP EPS expectations of $3.77-$3.79 exceeding Street projections of $3.69. Cash flow generation remained robust, with trailing 12-month adjusted FCF margin of 38.5% (+430 bps Y/Y), keeping the company firmly on track toward its 40% FCF margin target by FY 28, reflecting scalability of the platform model.

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