Palo Alto Networks reported fiscal 2026 third-quarter revenue of $3 billion, a 31% year-over-year increase that exceeded the LSEG consensus estimate of $2.94 billion. The company also announced adjusted earnings per share of 85 cents, surpassing the expected 80 cents and marking a 6% increase from the same period last year.

The cybersecurity firm reported an acceleration in organic bookings growth during the quarter, signaling stronger demand for its products and services. In the six weeks leading up to the earnings release, Palo Alto Networks held more than 800 customer meetings to discuss cybersecurity strategies in what the company described as a post-Mythos environment—a reference to an artificial intelligence model the company says can autonomously conduct full-scale cyberattacks.

"We have entered the era of truly cyber capable systems, where models like Mythos possess the autonomous capability to execute comprehensive attack campaigns from start to finish. This represents a fundamental paradigm shift for the cybersecurity industry," CEO Nikesh Arora said.

Arora also suggested that rapid AI advancements could reshape the market outlook for cybersecurity firms. "Rapid advancements in AI like the Mythos model may have increased the terminal value of the entire cybersecurity industry," he added.

Palo Alto Networks’ stock was roughly flat but volatile in after-hours trading following the earnings announcement. The shares had already risen approximately 61% year-to-date and 85% since the end of March, reflecting strong investor confidence ahead of the quarterly report.

The company said it held about 1,200 customer meetings during the entirety of the prior fiscal year, compared to over 800 in just six weeks before this quarter’s results, indicating an uptick in customer engagement. Palo Alto Networks also reiterated its longer-term financial target of achieving a 40% free cash flow margin by fiscal year 2028.

Palo Alto Networks expects to achieve a 40% free cash flow margin in fiscal year 2028, as previously stated. The company reported an acceleration in organic bookings growth in its fiscal 2026 third quarter.

No independent assessment of Palo Alto Networks’s claims was available.