PANWCYBRFTNTZS
PANW 2Q25:Platformization Accelerates, AI Security Emerging as a Growth Catalyst
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AI ARR $545M (+36% QoQ) and strong SASE/software firewalls back 26–27% FY26 growth toward $15B NGS by FY30.
Similar to findings from our channel checks and analysis in preview, Palo Alto Networks (excluding CyberArk) delivered a quarter of positive momentum. Based on available information, we think this upward trend is likely to continue into FY26.
Results slightly exceeded buy-side expectations.
Key Milestones
- Annualized Revenue Run Rate surpasses $10B.
- RPO growth inflected positively, driven by both large cross-platform deals and robust renewals/expansions within the existing portfolio.
- Next-Gen Security (NGS) Net New ARR grew 14% YoY (vs. 3% in Q3 and 13% in FY24 Q4).
- Product strength was broad-based, particularly in SASE, XSIAM, and software firewalls. Investments in software firewalls and SASE are now paying off. Given the shift to multi-cloud hybrid environments, demand for software firewalls is expected to remain strong. These products address very large TAMs and are building momentum, reinforcing confidence in PANW’s target of achieving $15B NGS ARR by FY30 as a standalone company.
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