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Palo Alto Networks

Palo Alto Networks' revenue kept growing in fiscal 2026, but its net income fell sharply

Total revenue rose 24.5% to $11.5B in the year to Jul 31, 2026, while net income fell 72.9% to $307M. Subscriptions were 54% of revenue.

Prepared from SEC filings · Latest annual report: 10-K for FY2026 (filed Sep 10, 2026) · Latest quarter: 10-Q for the quarter ended Apr 30, 2026 (filed Jun 3, 2026) · Data pulled Oct 25, 2026

Key facts

In fiscal 2026, which ended Jul 31, 2026, Palo Alto Networks (Nasdaq: PANW) took in $11.5B of total revenue (up 24.5% on fiscal 2025); net income was $307M (down 72.9%). The most recent quarter, ended Apr 30, 2026, brought revenue of $3.0B, up 31.1% year over year, with net income of −$177M. Subscription was the biggest single line by type: 54% of fiscal 2026 total revenue. Sources: 10-K for fiscal 2026 (filed Sep 10, 2026) and 10-Q for the quarter ended Apr 30, 2026 (filed Jun 3, 2026).

Revenue$11.5BFY2026 · +24.5% vs FY2025
Net income$307MFY2026 · −72.9% vs FY2025
Operating cash flow$4.6BFY2026 · +22.5% vs FY2025
Cash & equivalents$2.5BFY2026 end · +10.8% vs FY2025
Total debt$1.8BFY2026 end
Diluted shares764MFY2026 avg · +7.8% vs FY2025
Total revenue and net income, three fiscal yearsBy fiscal year, $bn
Total revenueNet income
Total revenue and net income by fiscal yearTotal revenue FY2024: $8.0B8.0Net income FY2024: $2.6B2.6FY2024Total revenue FY2025: $9.2B9.2Net income FY2025: $1.1B1.1FY2025Total revenue FY2026: $11.5B11.5Net income FY2026: $307M0.31FY2026

Source: 10-K FY2026, filed Sep 10, 2026

Quarterly total revenue: fiscal 2026 vs a year earlierFiscal Q1–Q3, $bn (each quarter from that quarter's 10-Q)
FY2025FY2026
Quarterly total revenue, fiscal 2026 vs 2025FY2025 Q1: $2.1B2.1FY2026 Q1: $2.5B2.5Q1FY2025 Q2: $2.3B2.3FY2026 Q2: $2.6B2.6Q2FY2025 Q3: $2.3B2.3FY2026 Q3: $3.0B3.0Q3

Source: 10-Q filed Nov 20, 2025 · 10-Q filed Feb 18, 2026 · 10-Q filed Jun 3, 2026

How it makes money

FY2026 total by categorySubscription: $6.2B (54%)Support: $3.0B (26%)Product: $2.3B (20%)$11.5BFY2026 total

By type, FY2026

  • LineAmountSharevs FY2025
  • Subscription$6.2B54%+25.4%
  • Support$3.0B26%+21.1%
  • Product$2.3B20%+26.5%

Source: 10-K FY2026, XBRL breakdown

Subscriptions brought in $6.2B in FY2026, 54% of revenue; support was 26% and product 20%. The Americas accounted for 67% of revenue.

By type: three-year mixShare of the total each fiscal year
SubscriptionSupportProduct

Source: 10-K FY2026

By region, FY2026

Americas$7.7B67%+23.8%
EMEA$2.4B21%+26.7%
Asia Pacific$1.4B12%+24.9%

Share is of the FY2026 total; the last column is the change from FY2025.

What changed last quarter

How the quarter compared with a year earlier

Comparing Q3 FY2026 (Feb to Apr 2026) compared with Q3 FY2025 (Feb to Apr 2025)

Each pair of bars shows the dollar amount for both quarters. Longer bar, more money. Bars in a group share one scale.

Q3 FY2026Q3 FY2025

This is the latest quarter with its own 10-Q. Fiscal 2026 has since ended, and companies report the fourth quarter only inside the annual 10-K (filed Sep 10, 2026), so the full-year figures above are newer than this comparison.

Company

Revenue
$3.0B Q3 FY2026
$2.3B Q3 FY2025
31.1% increase
Net income
−$177M Q3 FY2026
$262M Q3 FY2025
n/m (change not meaningful)

A hatched bar is a loss, drawn by its size. The % change isn't shown when either quarter is a loss.

Source: Palo Alto Networks 10-Q for the quarter ended Apr 30, 2026, filed Jun 3, 2026

By type

Subscription
$1.6B Q3 FY2026
$1.2B Q3 FY2025
32.3% increase
Support
$776M Q3 FY2026
$602M Q3 FY2025
28.9% increase
Product
$594M Q3 FY2026
$453M Q3 FY2025
31.1% increase

Source: Palo Alto Networks 10-Q for the quarter ended Apr 30, 2026, filed Jun 3, 2026

  • Operating cash flow, first 9 months of fiscal 2026: $3.2B vs $2.7B a year earlier.

The bull case and the bear case

The bull case

  • Total revenue grew 24.5% in FY2026 to $11.5B, and subscription revenue rose 25.4% to $6.2B. 10-K, FY2026
  • Operating cash flow rose 22.5% in FY2026 to $4.6B. 10-K, FY2026
  • Revenue grew in every region in FY2026: EMEA rose 26.7%, Asia Pacific 24.9% and the Americas 23.8%. 10-K, FY2026
  • Revenue in the quarter ended Apr 30, 2026 was $3.0B, up 31.1% on a year earlier. 10-Q, quarter ended Apr 30, 2026

The bear case

  • Net income fell 72.9% in FY2026 to $307M, from $2.6B in FY2024. 10-K, FY2026
  • It reported net income of −$177M, a loss, in the quarter ended Apr 30, 2026. 10-Q, quarter ended Apr 30, 2026
  • Diluted shares rose 7.8% in FY2026, partly from shares issued to buy CyberArk. 10-K, FY2026
  • The 10-K warns that its platformization strategy involves costly sales and marketing efforts that may not be as successful as intended. 10-K, Item 1A

What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.

What the company does

Palo Alto Networks sells cybersecurity products: firewalls, cloud security, security operations software and identity security, mostly as subscriptions.

Palo Alto Networks sells network security (hardware and software firewalls and secure access service edge), cloud security (Prisma Cloud and Cortex Cloud) and security operations (Cortex XSIAM and XDR). In February 2026 it bought CyberArk, which adds identity security.

It reports revenue as product (mainly firewall appliances and software licenses), subscription and support. It sells through channel partners. Its fiscal year ends on July 31, so FY2026 means the year to Jul 31, 2026.

Source: 10-K, Item 1 Business

Main risks the company lists

Our plain-English paraphrase of the risk factors in Palo Alto Networks's latest 10-K. Read the original for the full list.

  1. CompetitionCybersecurity is crowded and changes fast, with large and small rivals.
  2. StrategyIts push to sell an integrated platform is costly and may not win customers as planned.
  3. AcquisitionsIntegrating CyberArk and other purchases may be harder or costlier than expected.
  4. Its own securityA breach of its products or systems could badly hurt its reputation.
  5. Customers and partnersIt relies on channel partners and on large enterprise and government customers.
  6. Supply chainHardware relies on contract manufacturers and some single-source components.
  7. International and legalExport controls, currency, regulation and litigation can raise costs.

Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)

Three years of key numbers

Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.

US$FY2024FY2025FY2026
Total revenue$8.0B$9.2B$11.5B
Net income$2.6B$1.1B$307M
Operating cash flow$3.3B$3.7B$4.6B
Cash & equivalents (year end)$1.5B$2.3B$2.5B
Total debt (year end)–$0M$1.8B
Diluted shares708M709M764M
  • Total revenue: Firewall hardware and software, security subscriptions and support.
  • Net income: Profit after all costs and taxes.
  • Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
  • Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
  • Total debt: Convertible senior notes, current and long-term, at carrying value.
  • Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.

About these numbers

  • Palo Alto Networks' latest annual report (FY2026, to Jul 31, 2026) is newer than its latest 10-Q, which covers the quarter ended Apr 30, 2026. It doesn't file a 10-Q for its fourth fiscal quarter, so “What changed last quarter” uses the Apr 30, 2026 quarter.
  • FY2026 includes CyberArk from February 2026, which raised revenue, costs and the share count.
  • Total debt is its convertible senior notes, current and long-term, at carrying value.

Recent filings

FormFiledPeriod
10-KSep 10, 2026Jul 31, 2026
10-QJun 3, 2026Apr 30, 2026

Latest filings

  1. Oct 143:10 PM ET

    Form 4

    Palo Alto Networks CEO Nikesh Arora reports a other acquisition or disposition of 500,000 Variable Prepaid Forward (obligation to sell)s

    The filing reports 500,000 Variable Prepaid Forward (obligation to sell)s in an other acquisition or disposition (code J).

  2. Oct 97:34 PM ET

    Form 4

    Palo Alto Networks director Aparna Bawa reports selling 250 shares

    The filing reports 250 shares in an open-market or private sale (code S) at prices from $410.00 to $417.12, about $103,070 in total.

  3. Oct 94:30 PM ET

    Form 4

    Palo Alto Networks EVP Chief Product & Tech Ofcr Lee Klarich reports a gift of 60,000 shares

    The filing reports 60,000 shares given as a gift (code G).

  4. Oct 54:30 PM ET

    Form 4

    Palo Alto Networks Chief Accounting Officer Josh D. Paul reports selling 400 shares under a 10b5-1 plan

    The filing reports 400 shares in an open-market or private sale (code S) at $395.70, about $158,280 in total; and 1,308 shares withheld to pay the exercise price or tax (code F).

  5. Oct 14:30 PM ET

    Form 4

    Palo Alto Networks EVP Chief Product & Tech Ofcr Lee Klarich reports a gift of 25,000 shares

    The filing reports 25,000 shares given as a gift (code G).

All Palo Alto Networks filings notes →

Common questions about Palo Alto Networks

How does Palo Alto Networks make money?

In fiscal 2026, total revenue totaled $11.5B. Subscriptions brought in $6.2B in FY2026, 54% of revenue; support was 26% and product 20%. The Americas accounted for 67% of revenue. Source: 10-K for fiscal 2026, filed Sep 10, 2026.

What was Palo Alto Networks's revenue in fiscal 2026?

Total revenue came to $11.5B in the year ended Jul 31, 2026. Going back two years, it was $8.0B in fiscal 2024 and $9.2B in fiscal 2025, so the latest year was up 24.5%. Source: 10-K for fiscal 2026, filed Sep 10, 2026.

Is Palo Alto Networks profitable?

Yes, by US accounting rules (GAAP): net income was $307M in fiscal 2026, down 72.9% from $1.1B a year earlier. For the quarter ended Apr 30, 2026, net income was −$177M. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2026, filed Sep 10, 2026.

What did Palo Alto Networks report in its latest quarterly filing?

The 10-Q for the quarter ended Apr 30, 2026 shows revenue of $3.0B, against $2.3B in the same quarter a year before (up 31.1%), and net income of −$177M, against $262M (compared with $262M). Source: 10-Q for the quarter ended Apr 30, 2026, filed Jun 3, 2026.

How much cash and debt does Palo Alto Networks have?

On Jul 31, 2026, cash and cash equivalents stood at $2.5B and total debt at $1.8B. Total debt here is convertible senior notes, current and long-term, at carrying value. Source: 10-K filed Sep 10, 2026.

What are the main risks Palo Alto Networks lists?

Item 1A of the fiscal 2026 10-K (filed Sep 10, 2026) sets out the risks. Grouped, they fall into 7 areas: Competition; strategy; acquisitions; its own security; customers and partners; supply chain; international and legal. To start with the first: Cybersecurity is crowded and changes fast, with large and small rivals. Source: 10-K, Item 1A Risk Factors.

Where do these Palo Alto Networks numbers come from?

Two filings Palo Alto Networks made with the SEC: its fiscal 2026 10-K, filed Sep 10, 2026, and its 10-Q for the quarter ended Apr 30, 2026, filed Jun 3, 2026. The figures are taken from the XBRL data the SEC publishes, and every one links back to its source. Methodology explains how fiscal years and missing numbers are handled.

Disclosures

Editor holdings in PANW
The editor holds no position in Palo Alto Networks (PANW). As of Oct 25, 2026.
Trading rule
The editor does not buy or sell PANW from 3 days before to 3 days after this page is published or substantively updated.
Compensation
Nobody paid for this page. No affiliate links on this page.
Sources
The company's SEC filings, linked next to each number or, for charts, in the source line under them.
Last updated
Oct 25, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold PANW, and it doesn't consider your situation.

Compare with peers

CompanyFiscal yearRevenueRevenue growthNet income
Palo Alto NetworksPANWFY2026$11.5B+24.5%$307M
CiscoCSCOFY2026$63.3B+11.8%$13.3B
MicrosoftMSFTFY2026$331.8B+17.8%$133.7B
OracleORCLFY2026$67.4B+17.3%$17.1B

Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.

More company files

New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.