PANW · News · 20260814N

Competition and Market Share

Palo Alto Networks Inc · 2026-08-14 · Importance 17 · Surprise 24

Zscaler is increasing capital expenditures to support AI-driven cybersecurity demand, with spending potentially reaching high-single-digit percentages of revenue in fiscal 2026 and rising further in 2027. Zscaler’s AI Protect solution is cited as evidence of strong demand in the AI security market. Palo Alto Networks is described as pursuing a software-focused approach, rather than heavy infrastructure investment, to capture AI security demand alongside competitors such as Zscaler and CrowdStrike.

Key facts

• Rivals like Palo Alto Networks and CrowdStrike are adopting a software and acquisition-focused approach rather than heavy infrastructure investment to capture the AI security market. source