Palo Alto Networks (PANW) Q1 2026 10-Q Quarterly Report
Palo Alto Networks (PANW) 10-Q quarterly report for Q1 2026, filed with SEC EDGAR on Feb 18, 2026 for the fiscal period ending Jan 31, 2026. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.
Palo Alto Networks Q1 2026 10-Q Analysis
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
Palo Alto Networks Q1 2026 Quarterly FinancialsXBRL
Revenue
$2.6B
▲ +14.9% YoY▲ +4.9% QoQ
Net Income
$432M
▲ +61.6% YoY▲ +29.3% QoQ
Net Margin
16.7%
▲ +481bp YoY▲ +315bp QoQ
Source: XBRL data from Palo Alto Networks Q1 2026 10-Q filing on SEC EDGAR. All figures in USD.
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