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Performance was driven by a deliberate ‘flywheel’ motion where customers landing in SASE or Cortex expand into integrated platform architectures to reduce fragmented defense risks.
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Management attributes the record 110 net new platformizations to a market shift where enterprises are moving beyond AI experimentation toward embedding foundational models into real workflows.
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The strategy focuses on ‘critical control points’—network, endpoint, cloud, browser, and identity—arguing that fragmented security is obsolete as AI-driven attacks now exfiltrate data 4x faster than a year ago.
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The acquisition of CyberArk is framed as a response to the ‘agentic’ era, where autonomous AI agents logging in at machine speed make identity the primary attack vector.
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The company maintains a 30% plus operating margin for the third consecutive quarter, demonstrating that platform-led growth is being paired with disciplined operational leverage.
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Management views security as the ‘enabling layer’ for AI innovation, shifting the corporate conversation from simple capability to necessary real-time control.
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Fiscal 2026 guidance assumes a $1.52 billion NGS ARR contribution from M&A, with CyberArk reported ARR expected to be 2% to 3% lower than its previous bookings-based definition due to accounting alignment.
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The company is targeting $20 billion in NGS ARR by fiscal 2030, supported by the integration of identity and observability as new major platform pillars.
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Management expects the ‘harvest now, decrypt later’ adversary strategy to drive a long-term architectural uplift as customers prepare for the post-quantum era.
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The integration of Chronosphere and AgentiX is intended to enable ‘self-healing autonomous enterprises’ by combining deep observability with automated remediation.
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Future margin expansion toward a 40% free cash flow target by fiscal 2028 is supported by a disciplined approach to integration, sustained growth, and operating leverage, while the company also focuses on driving efficiencies in SASE and leveraging a high-margin software mix.
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Closed the acquisitions of Chronosphere and CyberArk, with a combined cash outlay of approximately $4.9 billion across Q2 and Q3.
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Announced intent to acquire Koi to address the ‘agentic endpoint,’ specifically targeting unmanaged attack surfaces like MCP servers and ephemeral code used in AI development.
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Noted a marginal impact on product COGS from higher memory and storage pricing, which management plans to offset through scale, software mix, and upcoming pricing actions.
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The CyberArk acquisition included the issuance of 112 million shares and a guarantee of CyberArk’s convertible senior notes due 2030.
