Palo Alto Networks
Palo Alto Networks, Inc. is a global artificial intelligence (“AI”) cybersecurity provider and our vision is a world where each day is safer and more secure than the one before.
10-K, Sep 10, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Business
How does Palo Alto Networks make money?
No revenue split that adds up to total revenue.
Empty state, nothing estimated.
What is left of every $100?
Of every $100 in revenue, $3 is net income.
Source and method
Of every $100 of revenue, FY2026.
Calculated: amount ÷ revenue × 100.
- Revenue: $11.5B
- Gross profit: $8.1B
- Operating income: $695M
- Net income: $307M
- Free cash flow: $4.1B
Where do customers sit?
66.9% of revenue is from Americas.
Source and method
Revenue by region, latest annual report.
10-K · 0001327567-26-000023 · XBRL revenue by region · one level, shares add up to 100.0% · derived
Calculated: share = region revenue ÷ total revenue.
In the company’s words ›
“Our mission is to be the cybersecurity partner of choice, protecting our digital way of life.”
“Our platforms and services help secure enterprise users, networks, clouds, endpoints, AI apps and agents, and identities by delivering comprehensive cybersecurity backed by AI and automation, and provide real-time visibility and monitoring across cloud infrastructure, applications and AI workloads.”
“A key element of our strategy is to help our customers simplify their security architectures through consolidating disparate point products.”
Item 1 · Business · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Thesis
Why do people invest?
2 reasons in the company’s own words.
Position (in the company’s words)
“As of July 31, 2026, we had end-customers in over 180 countries.”
Item 7 · MD&A · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
R&D investment
“Research and development expense increased for fiscal 2026 compared to fiscal 2025 primarily due to increased personnel costs, which increased by $429 million for fiscal 2026 compared to fiscal 2025, largely due to headcount growth, including from our acquisitions.”
Item 7 · MD&A · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
2 of 2 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 24% to $11.5B.
Revenue grew 34% YoY to $3.4B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 49.2%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
6.1% operating margin, down from 13.5%.
70.4% gross margin, down from 73.4%.
Operating income fell 44% to $695M.
Net income fell 73% to $307M.
R&D grew 29% to $2.6B.
SG&A grew 36% to $4.8B.
EPS diluted fell 75% to $0.40.
5.0% operating margin, down from 19.6%.
67.6% gross margin, down from 73.2%.
Operating income fell 65% YoY to $172M.
Net income: −$282M in FY2026 Q4.
R&D grew 55% YoY to $779M.
SG&A grew 58% YoY to $1.4B.
EPS diluted: −$0.22 in FY2026 Q3.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Keeps $36 of every $100 as free cash.
Operating cash flow grew 23% to $4.6B.
Capex grew 79% to $440M.
Buybacks: $1.0B in FY2026.
Stock-based compensation grew 37% to $1.8B.
Free cash flow grew 34% YoY to $1.3B.
Operating cash flow grew 33% YoY to $1.4B.
Capex grew 18% YoY to $103M.
Buybacks: $0 in FY2026 Q4.
Stock-based compensation grew 30% YoY to $460M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$2.5B cash vs $1.8B debt.
Total debt: $1.8B in FY2026.
Interest expense: $0 in FY2026.
Total assets grew 106% to $48.5B.
Equity grew 251% to $27.5B.
Cash grew 11% YoY to $2.5B.
Total debt: $1.8B in FY2026 Q4.
Interest expense: $0 in FY2026 Q4.
Total assets grew 106% YoY to $48.5B.
Equity grew 251% YoY to $27.5B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
How much revenue hangs on one customer?
One customer: 15% of revenue.
Source & method
- Counted
- Largest customers as disclosed in the annual report (share of revenue).
- Formulas
- One customer in dollars = disclosed share × total revenue of the same fiscal year (calculated), only where the filing text confirms the share is of total revenue.
- Guards
- Anonymous customers stay anonymous. Segment-based shares are never multiplied by total revenue.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (Palo Alto Networks annual report)
“For fiscal 2026, two distributors represented 10% or more of our total revenue, representing 15% and 15%, respectively.”
10-K · 0001327567-26-000023 · filed Sep 10, 2026 · basis: filing text, verified verbatim
Suppliers named by Palo Alto Networks
No supplier among the covered companies is named in the filings.
Palo Alto Networks holds stakes in
No stake in a covered company found in SEC filings.
Others name Palo Alto Networks
1 competitor mention (e.g. Fortinet) · 3 other mentions (e.g. HPE, Okta, Zoom) · 1 partner mention (e.g. IBM) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 60 risk factors, one per theme.
Competition
“We face intense competition and we may lack sufficient financial or other resources to maintain or improve our competitive position.”
Item 1A · Risk Factors · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Trade, government policy and geopolitics
“Our operating results may be adversely affected by unfavorable economic and market conditions and the uncertain geopolitical environment.”
Item 1A · Risk Factors · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Security, defects and outages
“The “identity security” market lacks a universally accepted definition, which could lead to mischaracterization of our offerings and adverse evaluations by industry stakeholders.”
Item 1A · Risk Factors · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Acquisitions
“We have acquired and may in the future acquire other businesses, which could subject us to adverse claims or liabilities, require significant management attention, disrupt our business, adversely affect our operating results, may not result in the expected benefits of such acquisitions, and may dilute stockholder value.”
Item 1A · Risk Factors · 10-K · 0001327567-26-000023 · filed Sep 10, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 7.44%.
Vanguard Capital Management LLC7.44%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
BlackRock Inc.7.8% (then)
13G/A · filed Jan 26, 2024 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
4 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.11.3%
75.8M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC7.9%
53.1M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.5%
37.0M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Morgan Stanley4.4%
29.5M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Invesco Ltd.3.8%
25.6M shares · 13F filed Aug 14, 2026 · share of 13F-reported
2,905 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.
Insiders, last 12 months (Form 4, open market)
2 purchases · 101 sales · $133M sold
Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026
All metrics
All metrics · 32 SEC metrics, FY2017–FY2026
Income statement 12
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| G&A | ||||||||||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A calc. | ||||||||||
| Sales & marketing | ||||||||||
Balance sheet 8
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | not reported | not reported | ||||||||
| Total assets | ||||||||||
| Total debt calc. | not reported | not reported | ||||||||
| Total liabilities & equity | ||||||||||
Cash flow 5
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | ||||||||||
| Capex | ||||||||||
| Free cash flow calc. | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 3
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Other income (incl. interest) | ||||||||||
| Pretax income | ||||||||||
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values