Filing Flows › Palo Alto Networks (PANW) › Q2 FY26
Palo Alto Networks (PANW) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 18, 2026
Palo Alto Networks (PANW) reported revenue of $2.6B for the second quarter fiscal 2026 (Q2 FY26), +15% from a year earlier and +5% from the quarter before. Operating margin was 15.3%, net earnings $432M (16.7% of revenue).
Palo Alto Networks, Q2 FY26: revenue $2.6B (+15% year over year), operating margin 15.3%, net earnings $432M, operating cash flow $554M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.6B | +5% | +15% |
| Gross profit | $1.9B | +4% | +15% |
| Operating profit | $397M | +28% | +65% |
| Net earnings | $432M | +29% | +62% |
| Operating cash flow | $554M | -69% | -0.5% |
| Free cash flow | $384M | -77% | -25% |
What changed
Revenue was $2.6B in Q2 FY26, up 15% year over year and up 5% from the previous quarter. Subscription was the largest line at 54% of revenue. Subscription added $0.17B year over year (up 14%), 51% of the total change.
Gross margin was 73.6%, up 0.1 points from Q2 FY25. Operating profit was $0.40B, a 15.3% margin (up 4.6 points year over year). Of the extra revenue versus Q2 FY25, 46% reached operating profit, above the 11% margin then. Operating expenses grew 7% against revenue growth of 15%. The fastest-growing cost line was General & admin (+16%). Net earnings were $0.43B, up 62% year over year. The effective tax rate was 21.3%. Non-operating items added $0.15B, 28% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.55B (down 1% year over year), 128% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.30B of share-based compensation. Working capital and other items used $0.27B. Capital expenditures of $0.17B left free cash flow of $0.38B.
Questions
What was Palo Alto Networks' revenue in the second quarter fiscal 2026?
Palo Alto Networks (PANW) reported revenue of $2.6B for the second quarter fiscal 2026 (Q2 FY26), +15% from a year earlier and +5% from the quarter before.
Was Palo Alto Networks profitable in the second quarter fiscal 2026?
Operating profit was $397M (15.3% of revenue) and net earnings $432M.
Source: Palo Alto Networks 10-Q on SEC EDGAR.