The short version
Palo Alto Networks had the biggest sales year in its history: $11.48 billion, up 24%. Net income fell 73% to $307 million, and earnings per share dropped from $1.60 to $0.40.
The reason is in the filing. CyberArk and Chronosphere added $930 million of revenue in the months Palo Alto owned them. Without them, the rest of the business grew about 14%. The same two companies produced a $797 million operating loss, and amortization of intangible assets jumped from $166 million to $640 million.
Palo Alto paid for CyberArk mostly in stock: $18.5 billion worth, 112 million new shares. Shares outstanding rose from 668 million to 815 million. The cash side still looks strong, with $4.1 billion of free cash flow, about 13 times net income.
What to watch next: the annual report already schedules $1.08 billion of amortization for fiscal 2027, and the full share count will weigh on earnings per share for all twelve months. On the other side, $9.3 billion of signed contracts are due to turn into revenue within a year. The test is whether growth without new deals can speed up from 14%.
