AI Security Demand Drives Quarterly Revenue to $3 Billion.. Cybersecurity Leader Transitions to GAAP Loss

Palo Alto Networks Inc. (PANW) announced on June 2 that its fiscal third-quarter revenue for the period ended April 30, 2026, rose 31% year-over-year to $3.0 billion (approximately KRW 4 trillion). On a GAAP basis, the company recorded a net loss of $177 million (around KRW 200 billion), reversing from a profit in the prior year. However, on a non-GAAP basis, net income reached $684 million (roughly KRW 900 billion – 1 trillion), and adjusted free cash flow grew to $910 million (about KRW 1.2 trillion).

Palo Alto Networks said its next-generation security segment saw substantial expansion in annual recurring revenue and remaining contract backlog, and it provided detailed guidance for both fiscal Q4 and full-year 2026. In the same month, director James J. Goetz sold approximately $5.3 million (around KRW 7 billion) worth of shares from his trust, and President & CEO William D. Jenkins Jr. disclosed adjustments to the phantom stock component of his deferred compensation plan.

The company recently completed its acquisition of Portkey, an AI gateway provider, to bolster security for AI agents and related workloads, continuing its strategic M&A momentum. Last month, it unveiled Idira, a next-generation identity platform aimed at enterprise identity security in the AI era, extending its product portfolio beyond network, cloud, and security operations.

Headquartered in California, Palo Alto Networks is a global cybersecurity leader that has rapidly grown by offering next-generation firewalls, cloud security, and security operations platforms on a subscription basis. As generative AI adoption, ransomware and supply-chain attacks increase worldwide, the enterprise security market for integrated network, cloud, and identity management is expanding—driving steadily rising budgets and demand, especially among U.S. large enterprises and financial institutions.