Palo Alto Networks, Inc. (NASDAQ: PANW) reported its fiscal second-quarter 2026 financial results on Feb. 17, 2026, showing year-over-year revenue and earnings increases, as well as updated outlooks for its fiscal third quarter and full year. The company’s share price moved lower in after-hours trading following the release. PANW stock reflects investor response to both reported financials and guidance.
Key Insights
- Fiscal Q2 2026 total revenue rose 15% year over year to $2.6 billion, compared with Q2 2025.
- GAAP net income was $432 million, or $0.61 per diluted share, versus $267 million, or $0.38 per diluted share in Q2 2025.
- Non-GAAP net income was $732 million, or $1.03 per diluted share, compared with $566 million, or $0.81 per diluted share a year earlier.
- Next-Generation Security Annual Recurring Revenue (ARR) grew approximately 33% year over year to $6.3 billion.
- Remaining performance obligation increased about 23% year over year to $16.0 billion.
- PANW stock declined in after-hours trading following the release, attributed by some market reports to profit guidance and costs.
Q2 Financial Results
Revenue & Earnings
Palo Alto Networks’ second quarter, which ended Jan. 31, 2026, delivered a year-over-year increase in both total revenue and earnings metrics. According to the company’s earnings release, total revenue was $2.6 billion, a 15% gain compared with the prior year’s quarter.
The company reported GAAP net income of $432 million for the quarter, equivalent to $0.61 per diluted share, compared with $267 million, or $0.38 per diluted share, in Q2 2025.
Non-GAAP net income for Q2 2026 totaled $732 million, or $1.03 per diluted share, versus $566 million, or $0.81 per diluted share, in the same quarter last year.
Annual Recurring Revenue & Contract Metrics
Palo Alto highlighted growth in contract-related metrics, reporting Next-Generation Security Annual Recurring Revenue (ARR) of $6.3 billion and Remaining Performance Obligation of $16.0 billion — both increases over the year-ago period.
No further breakout of ARR components or contract duration details was provided in initial public disclosures beyond the headline figures.
Share Performance and Market Reaction
Stock Movement
Following the earnings announcement, PANW stock exhibited a decline in after-hours trading, reported by several financial news outlets. Some market commentary linked the stock reaction to aspects of the company’s guidance and profit expectations, though official sentiment from Palo Alto Networks was not detailed in earnings documents.
As trading reactions vary across sessions and exchanges, current share price levels for PANW may differ at the time of publication. Verified price levels were not provided in the company’s financial filings.
Analyst & Media Coverage
Multiple financial news organizations reported that fiscal second-quarter results, while exceeding expectations on revenue and earnings per share, were followed by lower guidance on certain profit measures and associated costs, which influenced stock performance.
Guidance and Outlook Provided
Company Forecast
In its Q2 earnings release, Palo Alto Networks also provided guidance ranges for the fiscal third quarter and full year 2026:
- Per-share earnings for the fiscal third quarter were expected to range from $0.78 to $0.80.
- Revenue for the fiscal third quarter was expected in the range of $2.94 billion to $2.95 billion.
- Full-year 2026 earnings were expected in the range of $3.65 to $3.70 per share, with revenue ranging from $11.28 billion to $11.31 billion.
These figures were disclosed by the company in association with the earnings report; they reflect the company’s stated expectations at the time of reporting.
Background Context
Prior Quarter Performance
In fiscal first quarter 2026, Palo Alto Networks reported a 16% year-over-year increase in revenue to $2.5 billion, along with growth in ARR and remaining performance obligations as part of early-fiscal-year disclosures.
Fiscal second quarter 2025 results showed revenue growth of 14% year over year to $2.3 billion, illustrating a consistent expansion in the company’s revenue base compared with earlier periods.
Current Status
For the fiscal second quarter of 2026, Palo Alto Networks reported year-over-year increases in revenue, GAAP net income, non-GAAP net income, ARR, and remaining performance obligations. PANW stock experienced downward movement in after-hours trading following the earnings release. The company also provided guidance for the fiscal third quarter and full year, as disclosed in its earnings announcement. Official share price levels were not included in Palo Alto Networks’ filings.
This article reflects verified data from the company’s published financial results and reporting by reputable news outlets.
