Palo Alto Networks Inc
Palo Alto Networks is a U.S.-based cybersecurity company headquartered in Santa Clara, California. It develops hardware, software, and cloud-delivered security platforms that protect enterprise users, networks, clouds, and endpoints, and it serves customers globally through a mix of direct and channel-based sales.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueFirewalls, SASE, SD-WAN, and browser-based access security for enterprise networks.
Security controls and policy enforcement for cloud workloads and cloud networks.
Cortex and related tools for detection, response, and security analytics.
Unit 42 consulting, incident response, managed detection, and threat hunting.
Recurring software subscriptions, maintenance, updates, and technical support.
Products
Reported · share of revenue- Subscription54.3 %
- Support25.8 %
- Products19.9 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Palo Alto Networks sells primarily to enterprises, service providers, and government entities. Its end-customers span large organizations in education, energy, financial services, healthcare, manufacturing, public sector, telecommunications, and internet/media, with many deployments centered on enterprise networks, data centers, cloud environments, branches, and remote users.
Buy firewalls, SASE, cloud security, and security operations tools to protect users, networks, and workloads.
Buy security platforms and advisory services for critical infrastructure, compliance, and incident response.
Buy or resell security offerings for managed security and cloud-hosted delivery models.
Purchase through the two-tier model and resell to end-customers, enabling broad market reach.
Fortune 100 and Global 2000 customers that standardize on platform-based security architectures.
Strategy
Palo Alto Networks’ strategy centers on platformization: combining multiple security products into integrated architectures that reduce point-solution sprawl for customers. It also emphasizes AI-enabled innovation, expansion of recurring subscriptions and support, and deeper penetration within existing accounts through broader product adoption and managed services.
Integrated platforms can replace fragmented point products and increase customer stickiness.
AI and automation are central to faster threat detection, response, and differentiated security outcomes.
Subscriptions, support, and services create more durable customer relationships and renewal opportunities.
Consulting and managed services deepen customer relationships and support cross-sell into core platforms.
Geography
Q2/2026The company serves end-customers in over 180 countries, with revenue reported across the Americas, EMEA, and APAC. Its headquarters and major operational base are in Santa Clara, California, while manufacturing is also located in the San Francisco Bay Area, creating a concentrated U.S. operating footprint with broad international sales exposure.
Share of the revenue the company reports by geography.
Risks
The business depends on rapid product innovation, strong technical support, and the ability to defend against evolving cyber threats, so product defects or security incidents can damage trust quickly. It also relies on a two-tier channel model and concentrated manufacturing and logistics relationships, which creates execution risk if supply, distribution, or customer demand is disrupted.
- Product defects, vulnerabilities, or failure to block attacksImpact: HighLikelihood: Medium
Customers buy the company to protect critical systems; failures can trigger churn, claims, and reputational damage.
Exposure - Cyberattack or data-security incident at the companyImpact: HighLikelihood: Medium
A breach could undermine customer confidence and create liability and remediation costs.
Exposure - Supply-chain and manufacturing disruptionImpact: MediumLikelihood: Medium
Hardware products depend on manufacturing partners and logistics providers, so disruptions can affect delivery timing.
Exposure: Bay Area operations and third-party manufacturing
- AI and regulatory riskImpact: MediumLikelihood: Medium
AI features and data handling can create compliance, liability, and reputational issues.
Exposure: AI-enabled security products and advisory services
- Channel and distributor concentrationImpact: MediumLikelihood: Low
A large share of revenue flows through a small number of distributors, increasing dependence on partners.
Exposure: Two-tier indirect fulfillment model
Accounting
Judgemental itemsDifferent performance obligations affect timing of revenue and comparability across periods.
Impact: Can shift revenue between quarters and affect deferred revenue balances
Management notes that revenue varies quarter to quarter based on seasonal and cyclical factors.
Impact: Makes interim results less comparable and can affect working capital
A large portion of revenue comes through a small number of distributors, affecting credit and collection assumptions.
Impact: Can influence accounts receivable, cash conversion, and allowance estimates
Acquisitions require purchase accounting and may create impairment risk if expected benefits do not materialize.
Impact: Can affect amortization, goodwill balances, and future impairment charges
Share-based awards are a meaningful operating expense and require valuation assumptions.
Impact: Affects reported operating expenses and earnings
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Last updated: 24/09/2026