Palo Alto Networks Inc ( PANW ) reported first-quarter financial results for fiscal 2026 after the market close on Wednesday. Here’s a rundown of the cybersecurity company’s report.

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Q1 Highlights: Palo Alto reported first-quarter revenue of $2.47 billion, beating analyst estimates of $2.46 billion. The company posted adjusted earnings of 93 cents per share for the first quarter, beating analyst estimates of 89 cents per share, according to Benzinga Pro.

Total revenue was up 16% year-over-year and remaining performance obligations grew 24% year-over-year to $15.5 billion. The company said next-generation security annual recurring revenue increased 29% year-over-year to $5.9 billion. 

Palo Alto announced it entered into a definitive agreement to acquire Chronosphere, a next-gen observability platform built to scale with AI. The acquisition is expected to strengthen the company’s ability to help organizations meet demand for unified data and security foundations.

“Our strong start to the fiscal year was marked by excellent results across all metrics, and significant platformization wins,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. 

“Our robust innovation engine, paired with the strategic acquisitions of CyberArk and Chronosphere, positions us as the data and security partner of choice in the AI era.”

Palo Alto ended the quarter with approximately $3.07 billion in cash and cash equivalents.

Outlook: Palo Alto expects fiscal second-quarter revenue to be in the range of $2.57 billion to $2.59 billion versus estimates of $2.575 billion. The company anticipates second-quarter adjusted earnings between 93 cents and 95 cents per share versus estimates of 93 cents per share.

Palo Alto also raised its fiscal 2026 guidance. The company now expects full-year revenue of $10.50 to $10.54 billion, up from prior guidance of $10.48 billion to $10.53 billion. Analysts are expecting full-year revenue of $10.51 billion.

The company also raised its full-year adjusted earnings guidance from a range of $3.75 to $3.85 per share to a new range of $3.80 to $3.90 per share, versus estimates of $3.81 per share.

Palo Alto announced the retirement of Mary Pat McCarthy from the company’s board, effective Jan. 23, 2026. Mark Goodburn has been appointed to the board to take McCarthy’s place.

Palo Alto executives will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.

PANW Price Action: Palo Alto shares were down 5.70% in after-hours, trading at $188.50 at the time of publication on Wednesday, according to Benzinga Pro.

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