AI-extracted from the 10-K filed 2026-09-10 — FY2026 (year ended July 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Palo Alto Networks revenue grew 24% YoY to $11.5B in FY2026, driven by subscription growth to $9.2B and major acquisitions including CyberArk and Chronosphere, but operating margin compressed to 6.1% from 13.5% due to acquisition-related costs.
Biggest Revenue Drivers
Subscription and support$9.2B+24% YoY
Increased demand for subscription and support offerings from end-customers, including from CyberArk and Chronosphere acquisitions.
Product$2.3B+27% YoY
Increased revenue from software licenses including CyberArk acquisition and increased demand for new generation hardware products.
Biggest Revenue Drivers
Total revenue: $11.5B+24% YoY
Subscription and support$9.2B+24% YoY
Increased demand for subscription and support offerings from end-customers, including from CyberArk and Chronosphere acquisitions.
Product$2.3B+27% YoY
Increased revenue from software licenses including CyberArk acquisition and increased demand for new generation hardware products.
Largest Expense Items
Sales and marketing$3.9B+27% YoY
Increased personnel costs from headcount growth including acquisitions, plus higher amortization of intangible assets.
Research and development$2.6B+29% YoY
Increased personnel costs largely due to headcount growth including from acquisitions.
Cost of subscription and support revenue$2.8B+39% YoY
Higher cloud hosting costs, amortization of intangible assets from fiscal 2026 acquisitions, and personnel costs from headcount growth.
Margins: Gross margin declined to 70.4% from 73.4% YoY, driven by higher amortization of intangible assets from acquisitions, increased cloud hosting costs, and supply chain challenges impacting hardware margins. Operating margin compressed significantly to 6.1% from 13.5% due to substantial increases in operating expenses, particularly from acquisition integration costs and headcount growth.
Watch Items from the Filing
Two distributors represented 30% of total revenue in FY2026; one distributor represented 19% of gross accounts receivable as of July 31, 2026, creating significant revenue concentration risk.
CyberArk acquisition integration poses execution risk; full benefits and synergies may not be realized as expected, with complex process creating operational disruption potential.
NGS ARR grew to $9.1B from $5.6B, demonstrating strong underlying business momentum in recurring revenue base despite macro headwinds.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Goodburn Mark A.Reporting ownerGrant or award · Dec 10, 2025
Congress trading in PANW
46 transactions in PANW reported by 22 members of Congress under the STOCK Act, most recent trade Jul 31, 2026. Reported transactions, not recommendations.
About Palo Alto Networks Inc (PANW): stock profile, AI score and financials
Palo Alto Networks Inc (PANW) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores PANW at 65.5/100 on a composite quality score built from its SEC filings, placing it at rank #469 of 2,925 stocks — the top 25% of the AI-ranked universe. PANW scores in the top quartile across earnings quality (94.3), free cash flow (89.2), institutional flow (87.9). Areas of concern include profitability (29.5), which score below median versus the broader universe. Shareholder dilution risk is elevated at 11.2/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), Palo Alto Networks Inc reports quarterly revenue of $3.4B, net income of $-282.0M, an operating margin of 5.0%. Top institutional holders of PANW by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. PANW trades on the Nasdaq exchange and files with the SEC under CIK 1327567. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PANW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Palo Alto Networks Inc directly from SEC EDGAR.