Palo Alto Networks (PANW) released its Q3 FY2026 financial results for the period ended April 30 on June 2. Quarterly revenue reached $3 billion, beating analysts’ expectations of $2.94 billion; adjusted earnings per share (EPS) were $0.85. CEO Nikesh Arora said on the earnings call that advances at the AI frontier have increased the urgency of network security.
Q3 FY2026 Financial Figures: Confirmed Revenue, EPS, and Full-Year Guidance
Based on the confirmed figures in Palo Alto Networks’ official financial report:
Q3 Revenue: $3 billion, up 31% year over year (including $388 million in contributions from the CyberArk and Chronosphere acquisitions)
Adjusted EPS: $0.85 (above the $0.80 expected by LSEG)
GAAP Net Loss: $177 million (net loss per share of $0.22); compared with net profit of $262 million in the same period last year
Q4 FY2026 Revenue Guidance: $3.35 billion to $3.36 billion
FY2026 Full-Year Guidance: $11.42 billion to $11.43 billion
After disappointing guidance was released in February 2026, this earnings report topping expectations marked a turnaround in the company’s performance trajectory.
Mythos AI Model: Confirmed Customer Data in Collaboration With Anthropic
Palo Alto Networks was an early participant in Anthropic’s “Glasswing” program, which limited the initial rollout of the Mythos model and allowed certain partners to test its impact on network security. CEO Arora confirmed on the earnings call:
· After the release of Mythos, more than 1,200 customers proactively contacted Palo Alto Networks
· In the past six weeks, the company held 800 customer meetings to prepare for AI threat scenarios
· On Tuesday (June 2), the Mythos model opened testing to an additional 150 partner organizations
Arora said on the earnings call: “We expect that, in a few years, agentic AI will reach unprecedented levels of autonomous execution—coordinating end-to-end attack activity at machine speed, without human intervention.”
Recent Acquisition Integrations: CyberArk Renamed to Idira, Chronosphere Recorded
Palo Alto Networks’ Q3 financial report confirmed that recent acquisitions contributed $388 million of revenue for the quarter, covering the following completed acquisitions:
CyberArk (Israeli identity security platform, acquisition value of $25 billion): renamed to Idira last month
Chronosphere (AI observability platform): acquisition completed and recorded
KOI Security and Protect AI: acquisitions completed
Frequently Asked Questions
Palo Alto Networks Q3’s two year-over-year growth figures—29% and 31%—appear at the same time. What does each represent?
According to the official financial report, overall revenue rose 31% year over year, including $388 million in non-organic revenue contributions from the recent CyberArk and Chronosphere acquisitions. The 29% cited by some analysts refers to the organic growth rate excluding the impact of acquisitions, reflecting the company’s underlying growth performance in its core business.
Why is there such a large gap between PANW’s GAAP net loss and the positive adjusted EPS?
The GAAP net loss for Q3 FY2026 was $177 million, mainly due to non-cash or one-time items such as amortization related to acquisitions, stock compensation expenses, and restructuring costs. Adjusted EPS of $0.85 excludes the items mentioned above. This is the primary performance metric tracked by Wall Street and reflects the company’s cash profitability from day-to-day operations.
What confirmed direct impacts has the Anthropic Mythos model had on Palo Alto Networks’ business?
Based on CEO Arora’s public confirmation on the earnings call: after the release of Mythos, more than 1,200 customers proactively contacted Palo Alto Networks, and the company held 800 related meetings within six weeks. On June 2, Mythos opened testing to an additional 150 partner organizations. Palo Alto Networks is an early participant in the Glasswing program and has been authorized to test Mythos’ impact on network security.
