PANW
Updated: 23/09/2026, 09:01:40
Palo Alto Networks, Inc. is a global leader in providing advanced cybersecurity solutions. The company's core product line includes both hardware and software-based firewalls. It also offers Panorama, a sophisticated security management platform designed for centralized control of these firewall deployments, whether they are physical appliances, virtual instances, or situated in public or private cloud environments. Additionally, the firm provides virtual system upgrades to enhance the capacity of its physical firewall units. Complementing its core products, Palo Alto Networks delivers an extensive range of subscription services. These encompass robust threat prevention, protection against malware and advanced persistent threats, URL filtering, and security for both laptop and mobile devices. Further specialized subscriptions include DNS security, Internet of Things (IoT) security, SaaS security (via API and inline methods), threat intelligence, and data loss prevention. Beyond its product and subscription offerings, the company extends various expert services, such as cloud security, secure access solutions, security analytics and automation tools, and specialized cybersecurity consulting, often integrated with threat intelligence. Its professional services cover critical areas like architectural design and planning, system implementation, configuration, and seamless firewall migration. Educational resources, including certifications and both online and in-classroom training, are also available, alongside comprehensive support services. Palo Alto Networks distributes its security solutions both directly and through an extensive network of channel partners. Its diverse clientele primarily comprises medium to large-scale enterprises, service providers, and governmental organizations across a wide array of industries. These sectors include education, energy, financial services, healthcare, internet and media, manufacturing, the broader public sector, and telecommunications. Established in 2005, Palo Alto Networks maintains its corporate headquarters in Santa Clara, California.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2026 filing.
Revenue
$11.5B
FY 2026 · Reported
Net income
$0.3B
FY 2026 · Reported
Gross margin
70.4%
FY 2026 · Calculated
Free cash flow
N/A
FY — · Reported
R&D intensity
22.2%
FY 2026 · Calculated
Share repurchases
$1.0B
FY 2026 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Santa Clara headquarters
Santa Clara, United States · Headquarters
Item 2.
United States
Santa Clara headquarters
Item 2.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Mission and platformization strategy
Cybersecurity partner of choice; platformization strategy combining products/services into tightly integrated architecture
“Our mission is to be the cybersecurity partner of choice, protecting our digital way of life.”
Government customers
Sales to government entities
“A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks.”
Channel partner reliance
Channel partners sell a substantial portion of products
“We rely on our channel partners to sell a substantial portion of our products, including subscriptions and support”
Network & AI Security platform
Network & AI Security platform: SASE, NGFWs, cloud-delivered security services, Prisma AIRS, Strata Cloud Manager
“Our Network & AI Security platform is designed to deliver complete zero trust solutions to our customers.”
Cortex platform
Cortex: security operations, cloud security, observability (Chronosphere)
“Our AI-powered Cortex® platform transforms end-to-end security operations and observability with unified data, AI, and automation”
Idira identity security platform
Idira: workforce identity security and IT/developer identity security
“Idira™, our next-generation identity security platform, is designed to secure human, agentic, and machine identities across the enterprise”
Support services
Standard/Premium/Platinum Support, Focused Services, 24x7 level-three support
“We offer Standard Support, Premium Support, and Platinum Support to our end-customers and channel partners.”
Unit 42 threat intelligence and consulting
Unit 42 threat intelligence, incident response, security consulting, Frontier AI Defense
“Unit 42 brings together world-renowned threat researchers, incident responders, and security consultants”
Professional services and education
Professional services and education/certification services
“These services include architecture design and planning, implementation, configuration, and firewall migrations for all our products, including Prisma and Cortex deployments.”
USD-denominated contracts with FX exposure
Sales primarily in USD; exposed to FX fluctuations
“Our sales contracts are primarily denominated in U.S. dollars”
Supplier manufacturing concentrated in Asia
Supplier manufacturing geographically concentrated in Asia
“The manufacturing operations of some suppliers are geographically concentrated in Asia, making our supply chain vulnerable to regional disruptions”
Manufacturing partners and limited/sole-source component suppliers
Manufacturing partners incl. Flex; limited/sole-source IC suppliers; memory shortage raising production costs
“Our hardware products rely on key components, including integrated circuit components, purchased from a limited number of suppliers, including sole source providers.”
Engineering talent concentration in San Francisco Bay Area
Dependence on engineering talent, especially in SF Bay Area AI/ML
“Competition for highly skilled personnel, particularly in engineering, including in the areas of AI and machine learning, is intense, especially in the San Francisco Bay Area”
CyberArk acquisition
Completed acquisition of CyberArk in February 2026
“in February 2026, we completed the acquisition of CyberArk Software Ltd. (“CyberArk”), an identity security company”
Chronosphere acquisition
Completed acquisition of Chronosphere in January 2026
“in January 2026, we completed the acquisition of Chronosphere, Inc. (“Chronosphere”), a privately-held observability technology company”
Koi acquisition
Completed acquisition of Koi in April 2026
“in April 2026, we completed the acquisition of Koi, a privately-held endpoint posture management company”
IBM QRadar asset acquisition with contingent consideration
QRadar assets acquired from IBM; $206M contingent consideration obligation as of July 31, 2026
“Our acquisition of certain QRadar assets from International Business Machines Corporation (“IBM”) on August 31, 2024 included contingent consideration”
Embrace and Console pending acquisitions
Pending acquisitions of Embrace and Console entered July 2026
“in July 2026, we entered into a definitive agreement to acquire Embrace Mobile, Inc. (“Embrace”), a privately-held Real User Monitoring (“RUM”) company”
Portkey acquisition
Completed acquisition of Portkey in May 2026
“in May 2026, we completed the acquisition of Portkey, Inc. (“Portkey”), a privately-held AI Gateway company”
AI-powered R&D focus and fiscal 2026 releases
AI-powered R&D; FY2026 releases: PAN-OS 12.1 Orion, Prisma AIRS 2.0, NGTS, Prisma AIRS 3.0
“During fiscal 2026, we introduced several upgrades and new offerings, including: PAN-OS 12.1 Orion, Prisma AIRS 2.0, NGTS, and Prisma AIRS 3.0.”
Platformization strategy
Platformization: consolidating point products into integrated platforms
“Our platformization strategy combines various products and services into a tightly integrated architecture for more secure, faster, and cost-effective outcomes.”
G&A expense increase from acquisitions
G&A $899M FY2026 (+103%) driven by acquisition-related personnel costs
“increased personnel costs, which grew $253 million for fiscal 2026 compared to fiscal 2025, primarily due to accelerated vesting of certain equity awards”
2030 Notes (assumed from CyberArk)
$1.1B remaining principal of 0.0% Convertible Senior Notes due June 15, 2030
“the remaining outstanding principal balance of the 2030 Notes was $1.1 billion.”
$400 million revolving credit facility
$400M unsecured revolver (+$350M option), undrawn as of July 31, 2026
“In April 2023, we entered into a credit agreement (the “Credit Agreement”) that provides for a $400 million unsecured revolving credit facility”
Geopolitical tensions affecting international operations
Russia-Ukraine war, China-Taiwan tensions, Israel hostilities, Middle East hostilities
“the Russia-Ukraine war, tensions between China and Taiwan, the hostilities in Israel and the surrounding region, and continued hostilities in the Middle East”
12-month liquidity sufficiency
Cash sufficient for at least next 12 months
“our cash flow from operations with existing cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next 12 months”
2030 Notes conversion sufficiency
Sufficient liquidity to settle potential 2030 Notes conversions
“will be sufficient to meet our anticipated cash needs should the holders choose to convert their 2030 Notes”
Operating cash flow and cash flows
Operating cash flow: $4,553M FY2026, $3,716M FY2025, $3,258M FY2024
“Net cash provided by operating activities$4,553 $3,716 $3,258”
Share repurchase program
$5.1B repurchase authorization; $1.0B remaining; expires Dec 31, 2026
“As of July 31, 2026, $1.0 billion remained available for future share repurchases under this repurchase program.”
Liquidity and repatriation
$7.9B cash/investments; $3.5B foreign earnings repatriated; $(1.28)B working capital deficit
“we executed an intercompany transaction to repatriate $3.5 billion of foreign earnings”
Purchase commitments
$8.3B purchase commitments as of July 31, 2026
“our commitments to purchase products, components, cloud hosting, and other services totaled $8.3 billion”
Other income (expense) and tax rate
Other income (expense) $(159)M; effective tax rate 42.7% FY2026
“Our effective tax rate increased for fiscal 2026 compared to fiscal 2025 primarily due to non-deductible changes in fair value of our 2030 Notes and Capped Calls”
China cybersecurity regulatory requirements
China Cybersecurity Law, Data Security Law, network security review, mandatory certifications
“in China, our products may be required to comply with cybersecurity and data security laws, including the Cybersecurity Law, the Data Security Law”
Competition from cloud providers and AI companies
Cloud providers and AI companies compete with native security/observability offerings
“Cloud infrastructure providers and advanced AI companies increasingly offer native security and observability capabilities that compete directly with our offerings.”
Third-party cloud data center dependency
Depends on third-party cloud service provider data centers
“We rely on data center facilities operated by third-party cloud service providers”
AI risks
AI development/deployment risks; AI agents as new identity class
“Issues in the development, deployment, or use of AI may result in reputational harm, legal liability, and could adversely affect our business and operating results.”
Israel operations risk
Operations and employees in Israel; hostilities risk
“We face risks associated with having operations and employees located in Israel.”
Export controls on encryption technology
U.S. export controls and sanctions on encryption products
“because we incorporate encryption technology into our products, certain of our products are subject to U.S. export controls”
Consumption/usage-based offering revenue volatility
Usage-based offerings exposed to customer usage optimization behavior
“Our consumption- or usage-based offerings may expose us to customer usage optimization behavior that could create revenue volatility.”
Third-party integration ecosystem dependency
Dependence on broad third-party integration ecosystem
“The success of our strategy depends in part on the breadth and depth of our integrations with third-party technologies”
Identity security market definition risk
Identity security market lacks universally accepted definition
“The “identity security” market lacks a universally accepted definition”
Channel partners sell a substantial portion of products, subscriptions, and support; failure to perform limits sales and distribution.
“We rely on our channel partners to sell a substantial portion of our products, including subscriptions and support, and if these channel partners fail to perform, our ability to sell and distribute our products and subscriptions will be limited”
R&D is strategically centered on AI-powered innovation; AI is embedded in products and business operations and drives competitive position, but brings development, deployment, and legal risks.
“Our research and development efforts are strategically centered on expanding our leadership within the enterprise security industry through AI-powered innovation.”
Products secure AI apps and agents (Prisma AIRS, Frontier AI Defense, AI Access Security), and forward-looking statements highlight expectations regarding AI as a demand and growth driver.
“•expectations regarding artificial intelligence;”
Supplier manufacturing concentrated in Asia exposes hardware supply chain to regional disruptions, tariffs, sanctions, and export controls.
“The manufacturing operations of some suppliers are geographically concentrated in Asia, making our supply chain vulnerable to regional disruptions and international regulations, including tariffs, sanctions, and export controls.”
Cloud infrastructure providers and advanced AI companies increasingly offer native security and observability capabilities that compete directly with offerings.
“Cloud infrastructure providers and advanced AI companies increasingly offer native security and observability capabilities that compete directly with our offerings.”
Flex is a named manufacturing partner whose contract permits termination for convenience, exposing hardware production to disruption.
“Our contract with Flex permits termination for convenience, subject to prior notice requirements.”
Hardware products depend on manufacturing partners and limited/sole-source component suppliers, exposing the company to manufacturing delays, supply shortages, and pricing fluctuations.
“We depend on manufacturing partners and limited sources of supply for our hardware products, making us susceptible to manufacturing delays, supply shortages, pricing fluctuations, and international trade risks”
Global shortage of memory-related components has led to increased production costs for hardware appliances requiring higher memory content.
“there is currently a global shortage of memory-related components, and certain of our hardware appliances require higher memory content, which has led to and may continue to lead to increased production costs”
Company monitors tensions between China and Taiwan and between U.S. and China, which have increased costs and could adversely impact future results given Asian supplier concentration.
“We are also monitoring the tensions between China and Taiwan, and between the U.S. and China, which have increased our costs and could have an adverse impact on our business or results of operations in future periods.”
Sales contracts primarily denominated in USD; FX fluctuations and remeasurement gains/losses affect results.
“Our sales contracts are primarily denominated in U.S. dollars, and therefore, a predominant amount”
Operations and employees located in Israel expose the company to hostilities in Israel and surrounding regions and continued Middle East hostilities.
“We face risks associated with having operations and employees located in Israel.”
Tariffs, trade restrictions, and trade policy changes affect supply chain costs and international sales.
“international trade agreements, and foreign legal requirements, including those applicable to the importation, certification, localization and regulatory approval of our products, tariffs, and tax laws and treaties”
A portion of revenue comes from government sales, subject to challenges and risks.
“A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks.”
The Russia-Ukraine war is cited among international risks affecting sales and operations outside the United States.
“political, economic, and social uncertainty around the world, health risks such as epidemics and pandemics, macroeconomic challenges, terrorist activities, the Russia-Ukraine war, tensions between China and Taiwan”
Products may be required to comply with China's Cybersecurity Law, Data Security Law, network security review, and mandatory product certifications, affecting ability to sell in that market.
“in China, our products may be required to comply with cybersecurity and data security laws, including the Cybersecurity Law, the Data Security Law”
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