Short answer
Palo Alto Networks (PANW) filed its Q1 2026 10-Q quarterly report on Feb 18, 2026 for the quarter ended Jan 31, 2026. Quarterly revenue was $2.6B (up 14.9% year over year) with net income of $432M.
Q1 2026 key financials · XBRL
- Revenue
- $2.6B
- +14.9% YoY · +4.9% QoQ
- Net income
- $432M
- +61.6% YoY · +29.3% QoQ
- Operating margin
- 15.3%
- Gross margin
- 73.6%
- EPS (diluted)
- $0.60
- +600.0% YoY · +27.7% QoQ
Source: XBRL data from the Palo Alto Networks (PANW) Q1 2026 10-Q on SEC EDGAR. USD.
Palo Alto Networks Q1 2026 10-Q analysis
AI summary of MD&A and risk factor updates
Management Discussion & Analysis
- Revenue $2.594B Q2 FY26, up 15% YoY from $2.257B in Q2 FY25
- Operating margin 15.3% Q2 FY26 vs 10.6% Q2 FY25, gross margin 73.6% vs 73.5% YoY
- Best performing segment: Subscription & support revenue $2.080B, up 13% YoY; worst performing: Product revenue $514M, grew 22% but smaller share (19.8% of total)
- Operating cash flow $2.325B for six months ended Jan 31, 2026, up $258M YoY; investing cash outflow decreased to $332M from $925M YoY
- Management highlights AI and integration benefits from CyberArk and Chronosphere acquisitions; expects ongoing growth, notes geopolitical and macroeconomic risks including Israel conflict and US-China tensions
Risk Factors
- New risk: Impact of new U.K. Data (Use and Access) Act 2025 on U.K. GDPR compliance, creating regulatory uncertainty and higher compliance costs
- Most materially updated risk: CyberArk acquisition integration risks with potential disruption, increased competition, and uncertainty about realizing synergies
- Regulatory/legal risk: $114M patent infringement judgment in Centripetal lawsuit, currently on appeal, with ongoing intellectual property litigation exposure
- Operational/market risk: Supply chain sensitivity to tariffs and geopolitical tensions (e.g., U.S.-China, Taiwan), causing cost increases and delivery delays
- Financial risk: Customer credit and liquidity exposure with 3 distributors representing 42% revenue and 46% accounts receivable, raising concentration and default risk
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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