Palo Alto Networks
ConvictionContext
Subscription-and-support-led platform model (~80% of revenue recurring; FY2025: $7.42B subscription/support vs $1.80B product) layered on a firewall hardware/software estate; land-and-expand 'platformization' consolidates point products onto Strata, Prisma/Cortex Cloud, Cortex XSIAM, and now CyberArk identity, monetized as multi-year ARR contracts
Revenue
FY2026 guided $11.415-11.425B+24% YoY, FY ends July 2026); FY2025 actual $9.22B (+15%Rev growth
+31% YoYin FQ3 2026 (incl. $388M from CyberArk + Chronosphere); +24% guided FY2026; management described organic bookings growth as acceleratingGross margin
73.4% GAAP FY2025gross profit $6.77B); non-GAAP roughly ~77% (approx.); near-term dilution from acquired-intangible amortization post-CyberArk/ChronosphereOp margin
Non-GAAP 28.9-29.2% guided FY2026non-GAAP operating income $814M in FQ3 2026); GAAP negative in FQ3 2026 (-$183M operating loss vs +$219M a year earlier) on deal charges, stock comp and intangible amortizationCapex intensity
Low~2% of revenue (approx.; software-centric, hardware manufacturing outsourced to ODMs/EMSMarket cap
~$270-300Bearly July 2026; 813M shares outstanding at 2026-04-30 post-CyberArk stock issuance, up from 668M at 2025-07-31The read
Where our coverage leans
Coverage leans bullish
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Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.
- Income statement & margin structure
- SWOT, moats & dependency map
- Supplier–customer ecosystem graph
- Signals, trends & valuation range
Not investment advice — analyst work product for a qualified professional.· intel vintage 2026-07· sign in (free) for the analyst summary; Pro unlocks full intelligence