Key facts
- Palo Alto Networks stock rose 12% following strong Q3 2026 results.
- Non-GAAP EPS was $0.85, beating estimates by $0.05.
- Revenue reached $3 billion, surpassing expectations by $60 million.
- The company highlighted robust growth in its AI security offerings.
- CEO Nikesh Arora commented on AI's impact on cybersecurity.
- The company provided a stronger-than-anticipated earnings forecast.
Palo Alto Networks (NASDAQ: PANW) experienced a 12% stock rally after announcing its fiscal third quarter 2026 results, which concluded on April 30, 2026. The company reported Non-GAAP earnings per share of $0.85, exceeding analyst estimates by $0.05, and revenue of $3 billion, surpassing expectations by $60 million. The strong performance and guidance exceeded analyst expectations, driving the stock price increase. CEO Nikesh Arora commented that the results should alleviate concerns about AI-native firms displacing legacy cybersecurity software providers. The company specifically highlighted robust growth in its AI security offerings. The beat comes on lowered expectations, after the company gave disappointing guidance in February that fell short of analyst estimates. Palo Alto Networks Inc. released a forecast for adjusted earnings that was stronger than anticipated, signaling ongoing demand for security services as artificial intelligence-related threats continue to raise concerns for companies and governments.