Palo Alto Networks Prisma AIRS tops $100M in ARR

Palo Alto Networks reported that its AI security platform, Prisma AIRS, surpassed $100 million in annual recurring revenue (ARR) in the fourth quarter of fiscal 2026. The milestone was achieved within four quarters of general availability, making it the fastest-scaling product in the company's history. The platform now counts more than 800 customers, with most large fourth-quarter transactions including multiple Prisma AIRS modules.

Prisma AIRS secures enterprise AI stages by covering machine identities, monitoring autonomous AI agents, and providing real-time controls via an AI gateway. In the fourth quarter, Palo Alto Networks closed a $53 million platformization deal with a global payments platform, which included a high-seven-figure commitment to Prisma AIRS along with network defense standardization.

For fiscal 2027, Palo Alto Networks expects Network & AI Security revenue to grow at a low-double-digit rate. In the wider market, CrowdStrike ended its second quarter of fiscal 2027 with $5.84 billion in ARR, up 25% year over year, while SentinelOne reported a 22% year-over-year ARR increase in its second quarter of fiscal 2027.

Year to date, shares of Palo Alto Networks have gained 103.1%, compared with a 94.7% gain for the Zacks Security industry. The Zacks Consensus Estimate projects fiscal 2027 earnings growth of 8.9%, following a 7-cent upward revision over the past 30 days, and fiscal 2028 earnings growth of 17.6%, following a 2-cent downward revision over the same period.