Palo Alto Networks completes $1.25B CyberArk acquisition, revenue up 31% but margins turn negative

Filed June 3, 2026 · Period ending April 30, 2026 · Compared to 10-Q May 21, 2025 · ~1 min read

Key Changes

• high

  Operating margin turned negative 6.1% in Q3 (vs. +9.6% prior year) due to CyberArk integration costs, accelerated equity vesting, and severance charges; nine-month margin fell to 6.5% from 11.2%.

  MD&A: Operating Results verify on EDGAR →
• high

  CyberArk acquisition closed February 2026, adding Idira identity security platform and 4,166 employees; company assumed $1.25B in 0% convertible notes due 2030, with $1.1B outstanding after partial conversions.

  MD&A: Acquisitions & Debt verify on EDGAR →
• high

  Revenue growth accelerated to 31% year-over-year in Q3 (vs. 15% prior year), driven by CyberArk, Chronosphere observability platform, and organic expansion; NGS ARR jumped 59% to $8.1B.

  MD&A: Revenue Growth verify on EDGAR →