PANW · 10-K · 2026A

Palo Alto Networks Inc

Filed 2026-09-10 · Technology · View original filing on EDGAR

Ranked Events

• Market Demand TrendsImportance 81 · Surprise 64
  Total revenue increased 24% to $11.5 billion in fiscal 2026, reflecting increased adoption of Palo Alto Networks’ product, subscription, and support portfolio. Next-Generation Security ARR rose to $9.1 billion from…
• Acquisition / Partnership / DivestitureImportance 71 · Surprise 60
  Palo Alto Networks completed acquisitions of Chronosphere on January 29, 2026, CyberArk on February 11, Koi on April 14, Portkey on May 29, Embrace on August 27, and Console on September 1, 2026. Chronosphere added…
• Outstanding IndebtednessImportance 68 · Surprise 58
  The CyberArk acquisition added $1.25 billion of 2030 Notes, which became exchangeable into Palo Alto Networks common stock and cash after the February 2026 acquisition. Holders converted $153 million of principal…
• Purchase Commitments and ObligationsImportance 66 · Surprise 48
  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,…
• Investing ActivitiesImportance 64 · Surprise 56
  Net cash used in investing activities was $3.1 billion in fiscal 2026. Investing cash usage increased $899 million from fiscal 2025. The increase primarily reflected higher net cash payments for business acquisitions,…
• Operating Expense TrendsImportance 64 · Surprise 56
  Total operating expenses increased to $7.382 billion in fiscal 2026 from $5.527 billion, rising to 64.3% of revenue from 59.9%. Research and development expense increased 29% to $2.552 billion, including a $429 million…
• Operating Margin DriversImportance 63 · Surprise 64
  Fiscal 2026 operating margin declined to 6.1% from 13.5% in fiscal 2025 as operating expenses grew faster than revenue and gross margin fell to 70.4% from 73.4%. Operating expenses increased $1.855 billion to $7.382…
• Income Tax Rate ChangesImportance 60 · Surprise 74
  Fiscal 2026 effective tax rate increased to 42.7% from 28.9% in fiscal 2025. The higher rate was primarily caused by nondeductible fair-value changes in the 2030 Notes and capped calls and nondeductible share-based…
• Operating Cash Flow TrendsImportance 59 · Surprise 48
  Net cash provided by operating activities was $4.6 billion in fiscal 2026. Operating cash flow increased $837 million from fiscal 2025, driven primarily by business growth and higher customer collections. Higher cash…
• Geographic Revenue PerformanceImportance 59 · Surprise 48
  Americas revenue increased to $7.679 billion in fiscal 2026 from $6.205 billion, a $1.474 billion year-over-year increase. EMEA revenue rose to $2.428 billion from $1.917 billion, while APAC revenue increased to $1.373…
• Revenue Performance and MixImportance 59 · Surprise 48
  Fiscal 2026 total revenue increased 24% year over year to $11.48 billion from $9.22 billion in fiscal 2025. Product revenue grew 27% to $2.28 billion and represented 19.9% of total revenue, compared with 19.5% in…
• Capital Return ProgramImportance 58 · Surprise 42
  Palo Alto Networks’ board has authorized $5.1 billion of cumulative share repurchases, funded from available working capital and executed at management’s discretion. As of July 31, 2026, $1.0 billion remained available…
• Free Cash Flow and LiquidityImportance 54 · Surprise 40
  Cash, cash equivalents, and investments totaled $7.906 billion as of July 31, 2026, down from $8.459 billion a year earlier, while cash and cash equivalents increased to $2.514 billion from $2.269 billion. Net cash…
• Gross Margin DriversImportance 54 · Surprise 40
  Total gross profit increased to $8.077 billion in fiscal 2026 from $6.770 billion, but total gross margin declined to 70.4% from 73.4%. Product gross margin fell to 75.1% from 77.1% because of lower hardware margins,…
• Products and TechnologyImportance 31 · Surprise 42
  Palo Alto Networks is consolidating network, cloud, security operations, observability, identity, and threat intelligence capabilities into integrated platforms. Network & AI Security combines Prisma Access, Prisma…
• AI Security Platform ExpansionImportance 31 · Surprise 42
  Prisma AIRS is positioned as a unified platform for discovering, assessing, and protecting AI agents, applications, models, and data across the AI lifecycle. Its capabilities include AI Gateway, Agent Security, AI Red…
• Product Launch and TransitionImportance 31 · Surprise 42
  During fiscal 2026, Palo Alto Networks introduced PAN-OS 12.1 Orion, Prisma AIRS 2.0, NGTS, and Prisma AIRS 3.0. Prisma AIRS Gateway became generally available on July 16, 2026, incorporating AI gateway capabilities…
• Trade Policy and TariffsImportance 29 · Surprise 24
  Management identified potential expansion of U.S. export and import controls and tariffs, together with retaliatory actions by other countries, as risks that could materially and adversely affect the business. The…
• Competition and Market ShareImportance 26 · Surprise 24
  The company’s competitive positioning centers on platformization, integrating multiple security products and services into a unified architecture. Management states that innovation and timely development of new…
• Supply Chain ConstraintsImportance 26 · Surprise 24
  Cost of product revenue increased primarily because of higher demand for hardware products and higher costs driven by supply chain challenges. Product gross margin declined, including because of the effect of those…

Revenue by Product (in millions)

Revenue by Geography (in millions)