What it does
The company describes itself as a global AI cybersecurity provider. Its platforms and services are intended to secure enterprise users, networks, clouds, endpoints, AI applications and agents, and identities. The filing groups its offerings into Network & AI Security, Cortex security operations, cloud security and observability, Idira identity security, and Unit 42 threat intelligence and advisory services. Its network platform includes SASE, next-generation firewalls, cloud-delivered security services, Prisma AIRS, and Strata Cloud Manager. Cortex combines security operations, cloud security and observability capabilities, while Idira covers workforce, privileged, machine and governance identity use cases.
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1 — sec.gov
How it makes money
The company reports revenue from subscriptions, support, and products; the segment table shown below provides the detailed breakdown. Subscription revenue was $6.2 billion in FY2026, or 54.3% of revenue. The filing says customers typically buy ongoing support for hardware, software and cloud offerings for one-year or longer terms, usually at the initial product sale, and typically renew for further one-year or longer periods. A substantial portion of sales reaches end-customers through a two-tier indirect model, in which the company sells to distributors that sell to resellers, which then sell to end-customers.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Subscription | $6.2 billion | 54.3% | 25.4% |
| Support | $3.0 billion | 25.8% | 21.1% |
| Product | $2.3 billion | 19.9% | 26.5% |
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1 — sec.gov
Customers and geography
The filing identifies enterprises, service providers and government entities as end-customers across industries including education, energy, financial services, healthcare, Internet and media, manufacturing, public sector and telecommunications. It states that no individual end-customer accounted for more than 10% of total revenue in fiscal 2026. The United States generated $7.1 billion, or 61.9%, of FY2026 revenue. Europe, the Middle East, and Africa (EMEA) generated $2.4 billion, or 21.1%; Asia Pacific and Japan (APAC) generated $1.4 billion, or 12.0%. The company also sells selected virtual-firewall offerings through cloud marketplaces.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $7.1 billion | 61.9% | 22.8% |
| Europe, the Middle East, and Africa (“EMEA”) | $2.4 billion | 21.1% | 26.7% |
| Asia Pacific and Japan (“APAC”) | $1.4 billion | 12.0% | 24.9% |
| Other Americas | $571.0 million | 4.97% | 36.3% |
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1 — sec.gov
Competition
The company states that it operates in an intensely competitive enterprise-security industry characterized by constant change and innovation. The filing names Alphabet, Cisco and Microsoft among larger companies; Check Point, CrowdStrike, Delinea, Fortinet, Okta, SailPoint and Zscaler among independent security vendors; and DataDog, Dynatrace and Elasticsearch among observability vendors. It also identifies startups and point-product vendors, plus public-cloud vendors and startups offering cloud-security solutions. The filing lists product features, reliability, performance, breadth, integration, price, standards, sales and marketing, and brand awareness as principal competitive factors.
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1 — sec.gov
Key risks
- Our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain geopolitical environment.
- If the company does not effectively manage future growth or improve systems, processes and controls, its business and operating results could be adversely affected.
- If it cannot sell new and additional products, subscriptions and support offerings to existing end-customers or attract new customers, especially large enterprises, revenue and operating results will be harmed.
- The enterprise security industry and other spaces in which it has offerings are intensely competitive.
- It depends on manufacturing partners and limited hardware supply sources.
- Costs of complying with privacy and data-protection requirements, or failure to comply, could result in enforcement, litigation and adverse publicity.
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1A — sec.gov
People and operations
The company had 21,921 employees in FY2026. Its filing describes global customer support and regional support centers located worldwide, with level-three support provided 24 hours a day, seven days a week. It also reports more than 8,700 channel partners as of July 31, 2026. The company states that customer spending patterns create seasonality: its strongest sequential revenue growth has generally occurred in its fiscal second and fourth quarters. It cautions that backlog can change with billing and fulfillment timing, including inventory shortages, and is not necessarily indicative of future operating results.
Source: Palo Alto Networks, Inc. Form 10-K for fiscal 2026, Item 1 — sec.gov