Interprétation IA fondée sur des extraits vérifiés. Les déclarations de l’entreprise et les limites de couverture restent explicites.
Méthode quality-scores-2 : six catégories de même poids. Le score global exige une couverture complète. Les données manquantes ne valent pas zéro. Les évaluations qualitatives sont des interprétations sourcées, pas des probabilités. 3/6 · 22/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Common software and centralized policies support a plausible switching-cost mechanism, but the passages do not establish an economically durable advantage over competitors.
durability · — · Continued installed-software use supports persistence, but no demonstrated replacement burden or sustained competitive outcome establishes moat duration.
customer dependency · — · Security-policy integration and recurring sales indicate operational relevance, but customer dependence on Palo Alto Networks specifically remains unestablished.
erosion resilience · — · Growing contracted demand is favorable, but does not demonstrate resistance to bundling, native cloud alternatives or technology displacement. The moat verdict remains uncertain.
Pouvoir de fixation des prix38
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · The reference to potentially further raising hardware prices indicates prior pricing action, but gives no realized increase or customer response. Actual component inflation hurt gross margin, and customers have demanded financing and deferred payments. This supports weak demonstrated pricing effectiveness; it does not establish realized price cuts.
retention · 2/4 · Continued Panorama deployments, growing subscription revenue, expanding RPO and no deferred contract-cost impairments support repeat demand indirectly. Acquisition contributions and the absence of cohort renewal data prevent a strong retention conclusion.
margin resilience · 1/4 · Nine-month gross margin declined from 73.5% to 71.5%, and subsequent component inflation explicitly reduced gross margin. Acquisition amortization explains part of the decline, so the evidence indicates fragile cost absorption rather than proving weaker selling prices.
contractual freedom · 2/4 · Annual non-exclusive distributor agreements and issuer termination rights provide some commercial flexibility. Large enterprise customers have negotiating leverage, and experienced deferred-payment demands constrain terms. Distributor provisions do not establish unilateral end-customer repricing rights.
Prévisibilité100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.65
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.21
Solidité financière—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 9.68
- Current ratio (x)
- 0.87
Allocation du capital—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 7.37
- 3-year average SBC / revenue (%)
- 14.30
- cashConversionGrade
- 100.00
Qualité du management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Annual operating cash flow increased from $3.716 billion to $4.553 billion, and actual repurchases totaled $1 billion. Against this, shares outstanding increased from 668 million to 815 million, including acquisition and warrant issuance, while non-cancelable commitments reached $8.242 billion. Acquisition returns remain unproven; repurchases alone do not establish disciplined allocation.
incentive alignment · 2/4 · Actual fiscal 2025 executive equity awards were performance-based, payout ceilings were reduced and a post-vesting holding period was maintained. Adopted measures include NGS ARR and non-GAAP EPS, which excludes recurring compensation costs. Actual dilution and missing executive ownership amounts limit confidence; proposed awards or plan changes are not assumed adopted or vested.
execution · 2/4 · Completed product introductions, expanding contracted demand and higher operating cash generation support execution through indirect operating evidence. Fourth-quarter GAAP operating income declined from $497 million to $172 million. Acquisitions expanded capabilities, but completion and management commentary do not demonstrate integration returns.
governance · 2/4 · Completed independent-director investor engagement and an unqualified internal-control opinion support oversight. A classified board, restrictions on shareholder action and supermajority amendment requirements weaken accountability. CyberArk was excluded from the fiscal 2026 internal-control assessment.
Preuves
All of our hardware and software firewalls incorporate the PAN-OS® operating system and include the same rich set of features, ensuring consistent operation across our entire product line.
Business / Next-Generation Firewalls / common operating system · Dépôt 10/09/2026
SCM helps customers centrally manage configurations and security policies, assess security posture and network health, and streamline troubleshooting and remediation.
Business / Strata Cloud Manager / configurations and security policies · Dépôt 10/09/2026
Many of our existing deployments continue using Panorama as the security management solution, while new deployments benefit from using Strata Cloud Manager instead for managing network security estate—including our Next-Generation Firewalls and SASE—with a cloud-based, unified management interface.
Business / Panorama / continued use by existing deployments · Dépôt 06/09/2024
•Remaining performance obligations grew 34% year over year to $21.2 billion.
Fourth-quarter fiscal 2026 results / remaining performance obligations · Dépôt 01/09/2026
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data) Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Revenue: Product $ 594 $ 453 $ 1,542 $ 1,228 Subscription and support 2,408 1,836 6,528 5,457 Total revenue 3,002 2,289 8,070 6,685 Cost of revenue: Product 167 101 371 277 Subscription and support 807 518 1,926 1,495 Total cost of revenue 974 619 2,297 1,772 Total gross profit 2,028 1,670 5,773 4,913 Operating expenses: Research and development 734 494 1,773 1,480 Sales and marketing 1,161 793 2,804 2,271 General and administrative 316 164 673 416 Total operating expenses 2,211 1,451 5,250 4,167 Operating income (loss) (183) 219 523 746 Interest expense — (1) — (3) Other income, net 27 93 282 261 Income (loss) before income taxes (156) 311 805 1,004 Provision for income taxes 21 49 216 124 Net income (loss) $ (177) $ 262 $ 589 $ 880 Net income (loss) per share, basic $ (0.22) $ 0.39 $ 0.81 $ 1.33 Net income (loss) per share, diluted $ (0.22) $ 0.37 $ 0.79 $ 1.24 Weighted-average shares used to compute net income (loss) per share, basic 801 665 729 659 Weighted-average shares used to compute net income (loss) per share, diluted 801 707 744 708 See notes to condensed consolidated financial statements.
Financial statements / subscription revenue and operating results · Dépôt 03/06/2026
Our competitors may devote greater resources to the research and development, promotion and sale of products and services, offer lower pricing, and have broader product and service offerings and more mature intellectual property portfolios to gain business in a manner that discourages users from purchasing our products and subscriptions, including incorporating cybersecurity features into their existing products or services, product bundling, selling at zero or negative margins, and offering concessions.
Risk Factors / competitor resources, pricing and bundling · Dépôt 10/09/2026
End-user customers who have invested substantial resources in their existing infrastructure may prefer to continue purchasing from their existing suppliers rather than switch to our products and subscriptions.
Risk Factors / customer investment in competing infrastructure · Dépôt 10/09/2026
•Cloud infrastructure providers and advanced AI companies increasingly offer native security and observability capabilities that compete directly with our offerings.
Risk Factors / native cloud and AI security competition · Dépôt 10/09/2026
This includes $1.6 billion in NGS ARR from CyberArk and Chronosphere.
Third-quarter fiscal 2026 results / acquired NGS ARR contribution · Dépôt 02/06/2026
(“Cisco”), Microsoft, Alphabet, or those that have acquired, or may acquire, security vendors and have the technical and financial resources to bring competitive solutions to the market;
Business / Competition / named large-company competitors · Dépôt 29/08/2025
(“Check Point”), Fortinet, Inc. (“Fortinet”), CrowdStrike Holdings, Inc.
Business / Competition / named independent security vendors · Dépôt 29/08/2025
For example, we experienced supply chain disruption and inflationary pressures during our fourth quarter of fiscal 2026, resulting in increased costs for memory and other components, which have negatively affected our gross margin and could continue to affect our gross margin.
Risk Factors / realized fourth-quarter component inflation and gross-margin impact · Dépôt 10/09/2026
Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 Amount % of Revenue Amount % of Revenue Amount % of Revenue Amount % of Revenue (dollars in millions) Revenue: Product $ 594 19.8 % $ 453 19.8 % $ 1,542 19.1 % $ 1,228 18.4 % Subscription and support 2,408 80.2 % 1,836 80.2 % 6,528 80.9 % 5,457 81.6 % Total revenue 3,002 100.0 % 2,289 100.0 % 8,070 100.0 % 6,685 100.0 % Cost of revenue: Product 167 5.6 % 101 4.4 % 371 4.6 % 277 4.1 % Subscription and support 807 26.8 % 518 22.7 % 1,926 23.9 % 1,495 22.4 % Total cost of revenue(1) 974 32.4 % 619 27.1 % 2,297 28.5 % 1,772 26.5 % Total gross profit 2,028 67.6 % 1,670 72.9 % 5,773 71.5 % 4,913 73.5 % Operating expenses: Research and development 734 24.5 % 494 21.6 % 1,773 22.0 % 1,480 22.1 % Sales and marketing 1,161 38.7 % 793 34.5 % 2,804 34.7 % 2,271 34.0 % General and administrative 316 10.5 % 164 7.2 % 673 8.3 % 416 6.2 % Total operating expenses(1) 2,211 73.7 % 1,451 63.3 % 5,250 65.0 % 4,167 62.3 % Operating income (loss) (183) (6.1) % 219 9.6 % 523 6.5 % 746 11.2 % Interest expense — — % (1) — % — — % (3) — % Other income, net 27 0.9 % 93 4.0 % 282 3.5 % 261 3.8 % Income (loss) before income taxes (156) (5.2) % 311 13.6 % 805 10.0 % 1,004 15.0 % Provision for income taxes 21 0.7 % 49 2.1 % 216 2.7 % 124 1.8 % Net income (loss) $ (177) (5.9) % $ 262 11.5 % $ 589 7.3 % $ 880 13.2 % (1) Includes share-based compensation as follows: Three Months Ended April 30, Nine Months Ended April 30, 2026 2025 2026 2025 (in millions) Cost of product revenue $ 2 $ 1 $ 4 $ 4 Cost of subscription and support revenue 50 32 114 95 Research and development 206 134 477 411 Sales and marketing 188 92 388 258 General and administrative 238 67 372 173 Total share-based compensation $ 684 $ 326 $ 1,355 $ 941 - 32 - Table of Contents IMPACT OF ACQUISITIONS On February 11, 2026, we completed our acquisition of CyberArk for a total purchase consideration of $21.1 billion.
MD&A / actual gross margins and operating results · Dépôt 03/06/2026
Amortization of intangible assets increased $117 million and $109 million for the three and nine months ended April 30, 2026, respectively, compared to the same periods in 2025 as a result of our recent acquisitions.
MD&A / acquisition amortization in subscription and support costs · Dépôt 03/06/2026
- 46 - Table of Contents Sales to large enterprise end-customers, which is part of our growth strategy, involve risks that may not be present, or that are present to a lesser extent, with sales to smaller entities, such as (a) longer sales cycles and the associated risk that substantial time and resources may be spent on a potential end-customer that elects not to purchase our products, subscriptions, and support, and (b) increased purchasing power and leverage held by large end-customers in negotiating contractual arrangements.
Risk Factors / enterprise-customer contractual negotiating leverage · Dépôt 03/06/2026
Sales are generally subject to our standard, non-exclusive distributor agreement, which provides for an initial term of one year, one-year renewal terms, termination by us with 30 to 90 days written notice prior to the renewal date, and payment to us from the channel partner within 30 to 75 days calendar days of the date we issue an invoice for such sales.
Business / Distribution / actual agreement terms · Dépôt 10/09/2026
Most of our sales are made on an open credit basis, and we have also experienced demands for customer financing and deferred payments due to, among other things, macro-economic conditions.
Risk Factors / experienced financing and deferred-payment demands · Dépôt 10/09/2026
3
Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
(In millions)
(Unaudited)
Three Months Ended
Year Ended
July 31,
July 31,
2026
2025
2026
2025
Net cash provided by operating activities
$
1,357
$
1,021
$
4,553
$
3,716
Less: purchases of property, equipment, and other assets
667
586
Goodwill
22,010
4,567
Intangible assets, net
7,017
763
Deferred tax assets
2,443
2,424
Other assets
678
422
Total assets
$
48,460
$
23,576
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
290
$
232
Accrued compensation
1,048
608
Accrued and other liabilities
838
846
Deferred revenue
7,747
6,302
Total current liabilities
9,923
7,988
Long-term convertible senior notes
1,774
—
Long-term deferred revenue
7,009
6,450
Deferred tax liabilities
251
89
Long-term operating lease liabilities
726
338
Other long-term liabilities
1,285
887
Total liabilities
20,968
15,752
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
24,772
5,292
Accumulated other comprehensive income (loss)
(71)
48
Retained earnings
2,791
2,484
Total stockholders’ equity
27,492
7,824
Total liabilities and stockholders’ equity
$
48,460
$
23,576
5
"We delivered a strong finish to a record year and exceeded our guidance across the board, fueled by strength across our Network & AI Security, Cortex, and Idira platforms," said Dipak Golechha, chief financial officer of Palo Alto Networks.
Financial reconciliation / annual operating cash flow and CFO commentary · Dépôt 01/09/2026
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In millions) Common Stock and Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Total Stockholders’ Equity Shares Amount Balance as of July 31, 2023 617 $ 3,019 $ (43) $ (1,228) $ 1,748 Net Income — — — 2,578 2,578 Other comprehensive income — — 41 — 41 Issuance of common stock in connection with employee equity incentive plans 18 297 — — 297 Taxes paid related to net share settlement of equity awards — (26) — — (26) Share-based compensation for equity-based awards — 1,079 — — 1,079 Reclassification of deferred compensation liability to (from) equity — (5) — — (5) Repurchase and retirement of common stock (4) (567) — — (567) Replacement awards related to business acquisitions 1 27 — — 27 Settlement of convertible notes 14 (3) — — (3) Settlement of note hedges (14) — — — — Settlement of warrants 18 — — — — Balance as of July 31, 2024 650 3,821 (2) 1,350 5,169 Net income — — — 1,134 1,134 Other comprehensive income — — 50 — 50 Issuance of common stock in connection with employee equity incentive plans 18 370 — — 370 Taxes paid related to net share settlement of equity awards — (184) — — (184) Share-based compensation for equity-based awards — 1,314 — — 1,314 Reclassification of deferred compensation liability to (from) equity — (32) — — (32) Repurchase and retirement of common stock — — — — — Replacement awards related to business acquisitions — 3 — — 3 Settlement of convertible notes 14 — — — — Settlement of note hedges (14) — — — — Balance as of July 31, 2025 668 5,292 48 2,484 7,824 Net income — — — 307 307 Other comprehensive loss — — (119) — (119) Issuance of common stock in connection with employee equity incentive plans 13 292 — — 292 Taxes paid related to net share settlement of equity awards — (126) — — (126) Share-based compensation for equity-based awards — 1,787 — — 1,787 Reclassification of deferred compensation liability to (from) equity — (335) — — (335) Repurchase and retirement of common stock (7) (1,000) — — (1,000) Issuance of common stock in connection with business acquisition 112 18,488 — — 18,488 Replacement awards related to business acquisitions 2 374 — — 374 Settlement of warrants 27 — — — — Balance as of July 31, 2026 815 $ 24,772 $ (71) $ 2,791 $ 27,492 See notes to consolidated financial statements.
Financial statements / actual share issuance and repurchases · Dépôt 10/09/2026
The following table presents details of the aggregate future non-cancelable purchase commitments under these agreements as of July 31, 2026 (in millions): Fiscal years ending July 31, Total 2027 2028 2029 2030 2031 2032 and Thereafter Cloud $ 7,686 $ 143 $ 1,218 $ 1,329 $ 1,398 $ 1,725 $ 1,873 Manufacturing 370 370 — — — — — Other 186 129 34 13 10 — — Total $ 8,242 $ 642 $ 1,252 $ 1,342 $ 1,408 $ 1,725 $ 1,873 Additionally, we have a $81 million minimum purchase commitment with a cloud hosting service provider through September 2027 with no specified annual commitments.
Notes / non-cancelable purchase commitments · Dépôt 10/09/2026
For fiscal 2025, 100% of our named executive officers’ equity compensation awards were performance-based, with different performance targets than the cash incentive plan awards.
2025 proxy / actual fiscal 2025 executive equity awards · Dépôt 07/11/2025
Maximum payout opportunity for the fiscal 2025 PSUs was set at 400% of target payout, and the maximum payout opportunity for the fiscal 2023 and fiscal 2024 PSUs was reduced by 33%, from 600% to 400% of target payout.
2025 proxy / implemented PSU payout reductions · Dépôt 07/11/2025
•New Performance Measures. Adopted an equal weighting of NGS ARR and Non-GAAP EPS as the new financial performance measures, in place of annual billings growth, and aligned all remaining performance periods for the fiscal 2023 and fiscal 2024 PSUs to utilize the new financial measures.
2025 proxy / adopted executive performance measures · Dépôt 07/11/2025
•Maintained a one-year post-vesting holding period for all NEOs, including our Chief Executive Officer, subject to limited exceptions for equity grants made as part of first becoming an executive officer
2025 proxy / maintained executive post-vesting holding period · Dépôt 07/11/2025
Many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future, such as share-based compensation, which is an important part of our employees' compensation and impacts their performance.
2025 proxy / recurring compensation excluded from non-GAAP measures · Dépôt 07/11/2025
During fiscal 2026, we introduced several upgrades and new offerings, including: PAN-OS 12.1 Orion, Prisma AIRS 2.0, NGTS, and Prisma AIRS 3.0.
Business / completed fiscal 2026 product introductions · Dépôt 10/09/2026
•GAAP operating income for the fiscal fourth quarter 2026 was $172 million, compared with GAAP operating income of $497 million for the fiscal fourth quarter 2025.
Fourth-quarter fiscal 2026 results / GAAP operating income decline · Dépôt 01/09/2026
For example, on January 29, 2026, we completed the acquisition of Chronosphere, forming our observability platform; on February 11, 2026, we completed the acquisition of CyberArk, forming our next-generation identity security platform; on April 14, 2026, we completed the acquisition of Koi, adding agentic endpoint security capabilities to our security operations platform and enhancing Prisma AIRS; on May 29, 2026, we completed the acquisition of Portkey, enhancing our Prisma AIRS capabilities; on August 27, 2026, we completed the acquisition of Embrace, which we expect will add RUM capabilities to our observability platform; and on September 1, 2026, we completed the acquisition of Console, which we expect will deepen our agentic capabilities in Cortex.
MD&A / completed acquisitions and expected capabilities · Dépôt 10/09/2026
In fiscal 2025, our Lead Independent Director participated in 14 meetings with investors representing 35% of our outstanding shares, while offering meetings to investors representing 45% of our outstanding shares (each, as of June 30, 2025).
2025 proxy / completed independent-director investor engagement · Dépôt 07/11/2025
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of July 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated September 10, 2026 expressed an unqualified opinion thereon.
Auditor report / unqualified internal-control opinion dated September 10, 2026 · Dépôt 10/09/2026
Our restated certificate of incorporation and amended and restated bylaws include provisions that, among other things: •establish that our board of directors is divided into three classes, Class I, Class II, and Class III, with three-year staggered terms; •authorize our board of directors to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval; •provide our board of directors with the exclusive right to elect a director to fill a vacancy created by the expansion of our board of directors or the resignation, death, or removal of a director; •prohibit our stockholders from taking action by written consent; •specify that special meetings of our stockholders may be called only by the chairman of our board of directors, our president, our secretary, or a majority vote of our board of directors; •require the affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of the voting stock, voting together as a single class, to amend the provisions of our restated certificate of incorporation relating to the issuance of preferred stock and management of our business or our amended and restated bylaws; - 35 - Table of Contents •authorize our board of directors to amend our bylaws by majority vote; and •establish advance notice procedures with which our stockholders must comply to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting.
Risk Factors / existing charter and shareholder-action restrictions · Dépôt 10/09/2026
Our assessment of the effectiveness of our internal control over financial reporting as of July 31, 2026 excluded CyberArk, which we acquired on February 11, 2026.
Controls and Procedures / CyberArk assessment exclusion · Dépôt 10/09/2026
This includes $1.8 billion from CyberArk and Chronosphere.
Third-quarter fiscal 2026 results / acquired RPO contribution · Dépôt 02/06/2026
For example, U.S. and Chinese import tariffs have impacted some of our components, increasing our costs and potentially requiring us to further raise prices on our hardware products.
Risk Factors / tariff cost impacts and potential further hardware price increases · Dépôt 10/09/2026
Our competitors may develop new or disruptive technologies, products, or services that are equal or superior to ours, more successfully incorporate AI into their products and achieve higher market acceptance of their AI solutions, or deliver products to market more quickly than we can.
Risk Factors / potential technological displacement · Dépôt 10/09/2026
We did not recognize any impairment losses on our deferred contract costs during the years ended July 31, 2026, 2025, or 2024.
Accounting policies / no deferred contract-cost impairments in fiscal 2024–2026 · Dépôt 10/09/2026
