Palo Alto Networks, Inc.

paloaltonetworks.com

What Do They Do?

Sells cybersecurity platforms and services to enterprises, service providers and government entities.

How Do They Make Money?

Customers pay for subscriptions and support over the time those services are provided; they pay for hardware when it ships and software licenses when delivered.

revenue

Segment	Share	Revenue	How money arrives
Product Sold outright	20% FY2023: 23%		Sold outright
Subscription and support Recurring	80% FY2023: 77%		Recurring

Who Are Their Customers?

Enterprises, service providers and government entities buy its cybersecurity products and services. A substantial portion of sales goes through distributors and resellers, while the sales team also pursues end-customers directly with channel partners.

Customers above 10% of revenue, FY2026

of revenue from two customers (15%, 15%)

Do Revenues Turn Into Profits?

Yes. It kept 3 cents of every revenue dollar as net income in FY2026 and turned 36 cents into free cash flow.

Operating income, FY2026

6% of revenue

▼ −44% vs FY2025 ($1.2B, 13%)

Net income, FY2026

3% of revenue

▼ −73% vs FY2025 ($1.1B, 12%)

Free cash flow, FY2026

36% of revenue

▲ +19% vs FY2025 ($3.5B, 38%)

How Are They Changing?

Growing. Revenue grew 2.1x in 4 years, from $5.5B in FY2022 to $11.5B in FY2026, about 20% a year.

Broader security coverage The portfolio's security coverage has widened from enterprise users, networks, clouds and endpoints to artificial intelligence apps and agents, alongside human, agentic and machine identity security.

Observability offering The portfolio adds an observability offering through Chronosphere, which monitors cloud-native infrastructure, applications and artificial intelligence workloads; the older Cortex overview focused on security automation, analytics, endpoint security and attack-surface management.

Revenue over time

Product Subscription and support Support Subscription

$20B$10B$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Alphabet, Cisco Systems, Microsoft, Check Point Software Technologies, CrowdStrike Holdings, Delinea, Fortinet, Okta, SailPoint Technologies, Zscaler, DataDog, Dynatrace, and Elasticsearch

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