Filing Flows › Palo Alto Networks (PANW) › Q3 FY26 › vs Q2 FY26
Palo Alto Networks (PANW) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Palo Alto Networks's revenue rose $408M (+16%) from $2.6B in Q2 FY26 to $3.0B in Q3 FY26. The biggest changes: Subscription and support +$328M (+16%); Product +$80.0M (+16%).
Palo Alto Networks, Q3 FY26: revenue $3.0B (+31% year over year), operating margin -6.1%, net loss $177M, operating cash flow $871M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Free cash flow margin | 26.2% | 14.8% | +11.4 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Subscription | $1.6B | $1.4B | $228M | +16% |
| Support | $776M | $676M | $100M | +15% |
| Subscription and support | $2.4B | $2.1B | $328M | +16% |
| Product | $594M | $514M | $80.0M | +16% |
| Revenue | $3.0B | $2.6B | $408M | +16% |
| Other income, net | $27.0M | $152M | −$125M | -82% |
| Net loss | $177M | −$432M | $609M | — |
| Costs & expenses | $3.2B | $2.7B | $460M | +17% |
| Operating costs | $3.2B | $2.2B | $988M | +45% |
| Income tax | $21.0M | $117M | −$96.0M | -82% |
| Cost of revenue | $974M | $685M | $289M | +42% |
| Research & development | $734M | $511M | $223M | +44% |
| Sales & marketing | $1.2B | $823M | $338M | +41% |
| General & admin | $316M | $178M | $138M | +78% |
| Operating cash sources | $1.0B | $122M | $926M | +759% |
| Depreciation & amortization | $334M | $91.0M | $243M | +267% |
| Share-based compensation | $643M | $301M | $342M | +114% |
| Working capital & other | $71.0M | −$270M | $341M | — |
| Net loss absorbed | $177M | −$432M | $609M | — |
| Operating cash flow | $871M | $554M | $317M | +57% |
| Free cash flow (OCF − capex) | $788M | $384M | $404M | +105% |
| Capital expenditures | $83.0M | $170M | −$87.0M | -51% |
Questions
How much did Palo Alto Networks's revenue grow quarter over quarter in Q3 FY26?
Palo Alto Networks's revenue rose $408M (+16%) from $2.6B in Q2 FY26 to $3.0B in Q3 FY26.
What drove Palo Alto Networks's revenue change in Q3 FY26?
Subscription and support +$328M (+16%); Product +$80.0M (+16%).