PANW · 10-K · 2026A · Full report

Purchase Commitments and Obligations

Palo Alto Networks Inc · 2026-09-10 · Importance 66 · Surprise 48 · In source text

As of July 31, 2026, Palo Alto Networks had $8.3 billion of commitments to purchase products, components, cloud hosting, and other services. The commitments exceed the company’s $7.9 billion of cash, cash equivalents, and investments held for general corporate purposes. The company also reported $793 million of operating lease obligations through fiscal 2040 and a $206 million contingent consideration obligation related to the 2024 QRadar asset acquisition, payable through the quarter ending October 31, 2028.

Key facts

• As of July 31, 2026, Palo Alto Networks' commitments to purchase products, components, cloud hosting, and other services totaled $8.3 billion. source
• As of July 31, 2026, Palo Alto Networks had a contingent consideration obligation of $206 million related to the acquisition of certain QRadar assets from IBM with potential payments through the fiscal quarter ending October 31, 2028. source
• From time to time, we are involved in disputes, litigation, and other legal actions which may cause us to incur substantial settlement charges that are inherently difficult to estimate and could adversely affect our results of operations. source
• We accrue for loss contingencies when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. source

Impact estimates