Palo Alto Networks, a global leader in cybersecurity, reported a 16 percent increase in revenue to $2.5 billion for its fiscal fourth quarter and full-year revenue of $9.22 billion, up from $8.03 billion last year. The company said its strong execution reflects growing enterprise adoption of AI-driven security platforms as organizations consolidate defenses to combat increasingly sophisticated threats.
Nikesh Arora, chairman and CEO of Palo Alto Networks, said, “Customers understand that a fragmented defense is no defense at all against modern threats. They are partnering with us because our platforms work in concert, creating powerful operational synergies that deliver near real-time outcomes and efficiency.”
The company ended fiscal 2025 surpassing the $10 billion revenue run-rate milestone, with accelerated remaining performance obligations (RPO). CFO Dipak Golechha highlighted strong free cash flow and consistent operating efficiency, underscoring Palo Alto’s status as a “Rule-of-50” company for the fifth consecutive year.
Palo Alto Networks, reflecting the platformization growth strategy, added 900 new platformizations in Q3 FY24, 1,000 in Q4 FY24, 1,100 in Q1 FY25, 1,150 in Q2 FY25, 1,250 in Q3 FY25, and reached a record of 1,400 in Q4 FY25. It is on track to achieve its FY30 target of 2,500 to 3,500 platformizations. Palo Alto Networks expects $15 billion in Next-Generation Security Annual Recurring Revenue (NGS ARR) on a standalone basis. Among platformized customers, net revenue retention (NRR) is 120 percent with low single-digit churn.
Palo Alto Networks secured major platformization deals in Q4 across key industries. A global consulting firm signed a $111 million deal covering Cloud Security and SASE, resulting in $50 million in NGS ARR. A global financial services firm closed a $61 million deal, adopting XSIAM for security operations improvements, contributing $15 million in NGS ARR.
A large U.S. insurance provider entered a $33 million deal spanning Network Security, SASE, SecOps, and Cloud Security, generating $12 million in NGS ARR. Overall, customers with more than $5 million NGS ARR grew to 156, a 51 percent year-over-year increase, while those with more than $10 million NGS ARR reached 51, up 50 percent year-over-year.
AI-Driven Cybersecurity Strategy
Palo Alto Networks is leveraging artificial intelligence to strengthen its platformization strategy. Demand is growing for AI-driven platforms such as Cortex Cloud and Prisma AIRS, designed to protect enterprises adopting AI applications at scale. Analysts note that Palo Alto is benefiting from net new AI spending as enterprises shift from service-heavy models to automated product-led solutions.
The company also announced plans for a $25 billion acquisition of CyberArk, aiming to deepen its identity security portfolio and accelerate cross-selling opportunities across its client base. With the appointment of Lee Klarich as CTO and chair of the security committee, Palo Alto is signaling long-term commitment to AI-driven innovation in cybersecurity.
Major Client Wins
In Q4, Palo Alto closed some of its largest deals across consulting, financial services, and insurance sectors. A global consulting firm signed a $111 million deal for Cloud Security and SASE, driving $50 million in Next-Generation Security ARR. A global financial services firm secured a $61 million deal leveraging XSIAM to enhance security operations, while a large U.S. insurer closed a $33 million deal for integrated network and cloud security solutions.
Customers with more than $5 million in NGS ARR grew 51 percent year-over-year to 156, while those above $10 million in ARR rose 50 percent to 51, reflecting deepening client engagement and multi-platform adoption.
Outlook for Fiscal 2026
For Q1 FY26, Palo Alto expects revenue between $2.45 billion and $2.47 billion, up 15 percent year-over-year, with NGS ARR in the range of $5.82 billion to $5.84 billion, a 29 percent increase. For the full fiscal year 2026, revenue is projected between $10.48 billion and $10.53 billion, alongside 26–27 percent growth in NGS ARR.
With AI at the core of its strategy, expanded platform wins, and a landmark CyberArk acquisition on the horizon, Palo Alto Networks is positioning itself as a dominant force in next-generation cybersecurity.
Rajani Baburajan
