Palo Alto Networks FY2026 10-K: Revenue up 24% to $11.5B, but CyberArk integration drives net income down 73%
PANW has more than doubled off its 52-week low of $139.571.
Summary
Palo Alto Networks' FY2026 10-K shows 24% revenue growth to $11.5B but a 73% drop in net income to $307M, driven by CyberArk integration costs, non-cash convertible note losses, and heavy amortization. Share count rose 22% to 815M shares.
Key Events · Earnings and Guidance · PANW
-
FY2026 Revenue Up 24% to $11.48B
Total revenue grew 24% year-over-year to $11.48 billion, with subscription and support revenue up 24% to $9.2 billion and product revenue up 27% to $2.28 billion. NGS ARR reached $9.1 billion, up 63% from $5.6 billion.
-
Net Income Falls 73% to $307M
Net income dropped from $1.13 billion to $307 million, driven by $620 million in non-cash fair-value losses on the assumed 2030 convertible notes, $640 million in intangible amortization, and $1.8 billion in share-based compensation. Operating margin compressed from 13.5% to 6.1%.
-
CyberArk Acquisition Reshapes Balance Sheet
The $21.1 billion CyberArk acquisition (112M shares issued + $2.3B cash) drove goodwill to $22.0 billion and intangible assets to $7.0 billion. Share count increased 22% from 668M to 815M shares outstanding.
-
2030 Notes Deeply In-the-Money
The $1.1 billion principal balance of 2030 Notes carries a conversion price of $211.24 per share. At today's $339.40 stock price, the notes are convertible into up to 5.4 million shares, creating potential future dilution.
Analysis · PANW · Technology
Palo Alto Networks delivered strong top-line growth of 24% to $11.48 billion in fiscal 2026, but the $21.1 billion CyberArk acquisition fundamentally reshaped the balance sheet and crushed profitability. Net income fell 73% to $307 million from $1.13 billion a year earlier, driven by $620 million in non-cash fair-value losses on the assumed 2030 convertible notes, $640 million in intangible amortization, and $1.8 billion in share-based compensation. The share count jumped 22% to 815 million shares as 112 million shares were issued for CyberArk. Goodwill ballooned to $22 billion and intangible assets to $7 billion, creating a heavy future amortization burden. The company also completed Chronosphere ($3B), Koi ($231M), and Portkey ($117M) acquisitions, and closed Embrace ($325M) and Console ($500M) after year-end. Operating cash flow remained robust at $4.55 billion, and the company repurchased $1 billion of stock at an average price of $147.70 — well below today's $339.40. The 2030 Notes carry a $1.1 billion principal balance with a conversion price of $211.24, meaning they are now deeply in-the-money at current prices, creating potential future dilution of up to 5.4 million shares.
How filings like this one have moved
In the 30 days to Sep 11, 2026, 30.5% of the 1996 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.21%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PANW was trading at $339.40 on NASDAQ in the Technology sector, with a market capitalization of approximately $275.9B. The 52-week trading range was $139.57 to $398.88. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.