Palo Alto Reports Strong NGS ARR Growth but Posts GAAP Net Loss Amid Acquisition Costs
Palo Alto Networks (NASDAQ:PANW) reported a fiscal fourth-quarter revenue of $3.41 billion, up 34% year over year, driven by strong growth in its Next-Generation Security Annual Recurring Revenue (NGS ARR), which rose 63% to $9.10 billion. Despite this performance, the company posted a GAAP net loss of $282 million compared to a profit of $254 million in the prior year period. The growth was fueled by recent acquisitions rather than organic expansion and included approximately $970 million of new NGS ARR. The remaining performance obligations (RPO) increased 34% to $21.2 billion, offering visibility into future revenue recognition. Despite a GAAP loss, the company generated strong operating cash flow of $1.36 billion. Management expects continued growth in fiscal 2027 with projected revenues between $14.10 billion and $14.20 billion and NGS ARR reaching up to $11.175 billion. However, the GAAP results highlight significant costs from acquisitions and share-based compensation that impacted profitability.
Tickers: $PANW
Topics: acquisition_integration GAAP_loss NGS_ARR revenue_growth