Palo Alto Networks, Inc. reported significant financial growth in its fiscal year ending July 31, 2026, with total revenue reaching $11.48 billion, a 24% increase from $9.22 billion in the previous fiscal year. The company's product revenue grew to $2.28 billion, representing a 27% increase, while subscription and support revenue rose to $9.2 billion, up 24%. Despite this growth, the company experienced a decline in gross margin, which fell to 70.4% from 73.4% in the prior year, attributed to increased costs related to supply chain challenges and higher amortization of intangible assets from recent acquisitions.
Palo Alto Networks made several strategic acquisitions during the fiscal year, including CyberArk Software Ltd. for $21.1 billion, which significantly expanded its identity security platform. The company also acquired Chronosphere, Koi Security, and Portkey, enhancing its observability and endpoint security capabilities. These acquisitions contributed to a substantial increase in the company's workforce, which grew from 16,068 to 21,921 employees, including approximately 4,223 from the CyberArk acquisition alone. The company reported having end-customers in over 180 countries, including nearly all Fortune 100 companies.
Operationally, Palo Alto Networks reported a total of 9.1 billion in annualized recurring revenue (ARR) from its next-generation security offerings, a significant increase from $5.6 billion the previous year. The company also noted a rise in remaining performance obligations to $21.2 billion, indicating strong future revenue potential. The Americas region accounted for the largest share of revenue at $7.68 billion, followed by EMEA at $2.43 billion and APAC at $1.37 billion.
Looking ahead, Palo Alto Networks anticipates continued growth driven by increased demand for its cybersecurity solutions, particularly in the context of evolving threats and the integration of artificial intelligence into its offerings. The company plans to maintain its focus on innovation and expanding its product portfolio while managing the complexities associated with its recent acquisitions. However, it also acknowledged potential risks related to economic conditions, competition, and the integration of new technologies, which could impact future performance.
About Palo Alto Networks Inc
Palo Alto Networks is a global cybersecurity provider offering integrated platforms and services that secure enterprise networks, cloud environments, and endpoints. Its core solutions include SASE, next-generation firewalls, cloud-delivered security, and AI-powered security operations. Serving organizations across industries and government entities, the company emphasizes platform consolidation, automation, and threat intelligence to deliver comprehensive, scalable, and innovative cybersecurity protections.
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