Prisma AIRS Surpasses $100 Million in Annual Recurring Revenue Within Four Quarters
Key Facts
Palo Alto Networks said Prisma AIRS’ annual recurring revenue surpassed $100 million within four quarters of general availability, a milestone the company described as the fastest expansion among its products. The figure reflects the scale of activity generated by the AI-linked security product since its launch, according to the fiscal fourth-quarter 2026 earnings call. The company said Prisma AIRS’ customer base exceeded 800 when it announced results. Earnings slides showed the number of customers more than doubled quarter over quarter. The company also said most of its largest deals in the quarter included adoption of multiple units. The product’s growth comes amid a broader expansion in the company’s next-generation security business.
Company slides showed Prisma AIRS generated about $120 million in annual recurring revenue one year after general availability. Palo Alto Networks calculates the metric based on the share of next-generation firewall software credits that a customer allocates to the product in the booked quote. Those credits can be used across multiple products and services, the company explained. In the fourth quarter, next-generation security annual recurring revenue reached $9.10 billion, up 63% from the same period a year earlier. That growth places Prisma AIRS’ performance within a broader security portfolio that recorded a strong increase over the same period. Platform expansion was not limited to the new product: the company recorded about 220 new platform adoptions in the quarter.
Palo Alto Networks said net revenue retention among platformized customers exceeded 120% in the fiscal fourth quarter of 2026. The metric measures the company’s revenue from existing customers after accounting for expansion and contraction, according to the company’s definition. In results for the same quarter, total revenue rose 34% year over year to $3.41 billion. Remaining performance obligations also increased 34% to $21.2 billion, reflecting the value of contracts whose revenue had not yet been recognized, according to the earnings release. For the fiscal year, revenue rose to $11.48 billion from $9.221 billion in the year ended July 31, 2025. But the company recorded a generally accepted accounting principles net loss of $282 million in the fourth quarter, compared with net income of $254 million a year earlier.
The company issued its fiscal 2027 outlook alongside its fiscal 2026 results on September 1. It forecast revenue of $14.10 billion to $14.20 billion, representing annual growth of 23% to 24%. It also set a non-GAAP operating margin of 29.5% and an adjusted free cash flow margin of 38.0%. For the first quarter of fiscal 2027, it forecast revenue of $2.95 billion to $2.98 billion. The outlook will provide a benchmark for comparing the company’s upcoming results with the growth trajectory it announced. Palo Alto Networks set November 18, 2026, after the U.S. market close, as the date for reporting results for the quarter ended October 31.
Palo Alto Networks shares, listed under the ticker PANW, closed at $313.84 in the November 6, 2026, session. The close followed the announcement of fiscal-year results and its 2027 outlook in September, as investors awaited the next financial report in November. Published results show next-generation security annual recurring revenue reached $9.10 billion in the fourth quarter, with annual growth of 63%. Remaining performance obligations also exceeded $21.2 billion in the same period. Prisma AIRS revenue and platform adoption metrics remain part of the demand picture presented by the company, alongside its revenue and margin outlook for fiscal 2027.