Palo Alto Networks Reports Strong Q2 Earnings

Cybersecurity firm sees growth in SASE, software firewalls, and AI-powered security offerings

Published on Feb. 20, 2026

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Palo Alto Networks reported a 'strong' fiscal second quarter of 2026, citing broad demand for cybersecurity products and continued progress on the company's platformization strategy. CEO Nikesh Arora highlighted strength across SASE, software firewalls, and the company's XSIAM platform, as well as early traction in AI security offerings like Prisma AIRS. The company also announced acquisitions of Chronosphere and CyberArk to expand its observability and identity security capabilities.

Why it matters

Palo Alto Networks' strong quarterly performance underscores the growing demand for comprehensive cybersecurity solutions as enterprises accelerate their digital transformation and face increasingly sophisticated cyber threats. The company's focus on platformization, AI-powered security, and strategic acquisitions positions it to capitalize on key industry trends around cloud security, identity management, and security operations automation.

The details

Palo Alto Networks reported a 15% year-over-year increase in total revenue to $2.59 billion, driven by strength in its Next-Generation Security (NGS) business, which grew 33% to $6.33 billion in ARR. The company saw particular momentum in its SASE business, which surpassed $1.5 billion in ARR and grew approximately 40% year-over-year. Software firewalls also performed well, with Software Firewall ARR growing around 25%. Palo Alto Networks also highlighted progress in its Cortex platform, with XSIAM surpassing $500 million in ARR and over 600 customers, and early traction for its Prisma AIRS AI security offering.

  • Palo Alto Networks reported its fiscal Q2 2026 results on February 18, 2026.
  • The company closed its acquisition of Chronosphere near the end of Q2 2026.
  • Palo Alto Networks closed its acquisition of CyberArk early in fiscal Q3 2026.

The players

Palo Alto Networks

A cybersecurity company founded in 2005 and headquartered in Santa Clara, California, that develops a broad suite of security products and services designed to prevent cyberattacks and protect enterprise networks, clouds, and endpoints.

Nikesh Arora

The CEO of Palo Alto Networks.

Dipak Golechha

The CFO of Palo Alto Networks.

Chronosphere

A company that provides observability at massive scale, which Palo Alto Networks acquired near the end of Q2 2026.

CyberArk

A company that provides identity security solutions, which Palo Alto Networks acquired early in fiscal Q3 2026.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Palo Alto Networks' strong quarterly performance highlights the growing demand for comprehensive cybersecurity solutions as enterprises accelerate their digital transformation and face increasingly sophisticated cyber threats. The company's focus on platformization, AI-powered security, and strategic acquisitions positions it to capitalize on key industry trends around cloud security, identity management, and security operations automation.