Palo Alto Networks announced its acquisition of Console alongside fiscal fourth-quarter and full-year 2026 results, reporting revenue of $3.41 billion, up 34% year over year, and adjusted earnings of $1.02 per share, above estimates of $3.35 billion and 98 cents. Two people familiar with the transaction said Palo Alto Networks agreed to pay $500 million in cash and stock, but the companies did not disclose financial terms officially. Console’s AI-native, natural-language workflows and agents will be integrated into Cortex to support alert investigations, threat prioritization, automated remediation and routine IT help-desk tasks. Next-generation security ARR reached $9.1 billion, up 63%, while fiscal 2027 revenue guidance of $14.10 billion to $14.20 billion and next-generation security ARR guidance of $11.08 billion to $11.18 billion exceeded consensus. However, gross margin fell 100 basis points to 74.8%, management said cloud hosting costs would grow faster than revenue and memory and storage costs would remain elevated, and shares declined 5.2% Tuesday and 8% Wednesday for a two-day drop of 13.2%.