Filing Flows › Palo Alto Networks (PANW) › Q1 FY26
Palo Alto Networks (PANW) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Nov 20, 2025
Palo Alto Networks (PANW) reported revenue of $2.5B for the first quarter fiscal 2026 (Q1 FY26), +16% from a year earlier and -2% from the quarter before. Operating margin was 12.5%, net earnings $334M (13.5% of revenue).
Palo Alto Networks, Q1 FY26: revenue $2.5B (+16% year over year), operating margin 12.5%, net earnings $334M, operating cash flow $1.8B. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.5B | -2% | +16% |
| Gross profit | $1.8B | -1% | +16% |
| Operating profit | $309M | -38% | +8% |
| Net earnings | $334M | +31% | -5% |
| Operating cash flow | $1.8B | +73% | +17% |
| Free cash flow | $1.7B | +81% | +15% |
What changed
Revenue was $2.5B in Q1 FY26, up 16% year over year and down 2% from the previous quarter. Subscription was the largest line at 55% of revenue. Subscription added $0.17B year over year (up 14%), 51% of the total change.
Gross margin was 74.2%, up 0.1 points from a year earlier. Operating profit was $0.31B, a 12.5% margin (down 0.9 points year over year). Of the extra revenue versus a year earlier, 7% reached operating profit, below the 13% margin then. Operating expenses grew 18% against revenue growth of 16%. The fastest-growing cost line was General & admin (+83%). Net earnings were $0.33B, down 5% year over year. The effective tax rate was 18.9%. Non-operating items added $0.10B, 25% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $1.8B (up 17% year over year), 530% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.37B of share-based compensation. Working capital and other items added $1.0B. Capital expenditures of $0.08B left free cash flow of $1.7B.
Questions
What was Palo Alto Networks' revenue in the first quarter fiscal 2026?
Palo Alto Networks (PANW) reported revenue of $2.5B for the first quarter fiscal 2026 (Q1 FY26), +16% from a year earlier and -2% from the quarter before.
Was Palo Alto Networks profitable in the first quarter fiscal 2026?
Operating profit was $309M (12.5% of revenue) and net earnings $334M.
Source: Palo Alto Networks 10-Q on SEC EDGAR.