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.

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.

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.

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.

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.

Management views security as the ‘enabling layer’ for AI innovation, shifting the corporate conversation from simple capability to necessary real-time control.

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.

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.

Management expects the ‘harvest now, decrypt later’ adversary strategy to drive a long-term architectural uplift as customers prepare for the post-quantum era.

The integration of Chronosphere and AgentiX is intended to enable ‘self-healing autonomous enterprises’ by combining deep observability with automated remediation.

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.

Closed the acquisitions of Chronosphere and CyberArk, with a combined cash outlay of approximately $4.9 billion across Q2 and Q3.

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.

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.

The CyberArk acquisition included the issuance of 112 million shares and a guarantee of CyberArk’s convertible senior notes due 2030.