PANWCYBR
PANW 2Q26: Organic Revenue Guidance Cut by About 1 Percent Plus Dilution Drove the Stock Down
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Q2 beat, but FY26 organic rev guide ~13% vs ~14% buyside and EPS cut 5–6% on M&A dilution; integration risk.
Key Takeaways
Better Than Expected Organic Growth
Q2 revenue was US$2.59bn, up 15 percent year over year, beating consensus of US$2.58bn by roughly US$10m. Non GAAP EPS was US$1.03 versus consensus of US$0.94, a beat of about 10 percent. Organic NGS ARR grew 28 percent year over year. Operating margin was 30.3 percent, the third consecutive quarter above 30 percent, up 190 basis points year over year. Platformization net new was about 110, a record for a non Q4 quarter. Overall, Q2 was solid.
The Core Issue: About 1 Point Miss on Organic Revenue Guide Plus EPS Dilution
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