Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Q4 Revenue | $3.41 billion | up 34% |
| Full Year Revenue | $11.5 billion | up 24% |
| Q4 Non-GAAP EPS | $1.02 | exceeded high end of guidance by $0.04 |
| Q4 Adjusted Free Cash Flow | $1.29 billion | up 35% |
| Q4 NGS ARR | $9.1 billion | up 63% |
| Q4 RPO | $21.2 billion | up 34% |
Guidance and outlook
- Q1 FY2027: NGS ARR of $9.54 billion to $9.56 billion, RPO of $20.8 billion to $20.9 billion, revenue of $3.3 billion to $3.31 billion, and non-GAAP EPS of $0.96 to $0.98.
- Full Year FY2027: NGS ARR of $11.075 billion to $11.175 billion, RPO of $25.2 billion to $25.4 billion, revenue of $14.1 billion to $14.2 billion, and non-GAAP EPS of $4.16 to $4.19.
- Full Year FY2027: Adjusted free cash flow margin of 38%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record-breaking platformization, accelerated bookings, and successful integration of major acquisitions while raising the outlook for fiscal year 2027. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
M&A Strategy
Asked: How does management view M&A given the rapidly shifting AI landscape?
Answer: Management stated that M&A is not a strategy but a consequence of product development needs, used to embrace technology trends quickly when the market shifts.
CyberArk/Idira Integration
Asked: What is the penetration potential for the CyberArk platform within the installed base?
Answer: The company is accelerating growth and capturing synergies ahead of schedule, with a focus on upgrading existing customers to the new Modern PAM product.
AI Threat Environment
Asked: How is the AI threat environment changing customer buying behavior?
Answer: The AI threat has increased CEO interest in cybersecurity, driving a long-term trend toward platformization and the modernization of cyber estates.
Observability
Asked: Where is the company from a functionality perspective in observability?
Answer: Chronosphere is designed for the AI era with a cost advantage, and with the addition of Embrace, the company is reaching parity with enterprise market leaders.
What to watch before the next call
- Integration progress of recent acquisitions including Console and Embrace.
- Seasonality of net new NGS ARR in fiscal year 2027, specifically the impact of the large LLM customer migration.
- Execution on the 40% free cash flow margin target for fiscal year 2028.
