Palo Alto Networks

PANW exhibits meaningful pricing power via platform consolidation, product breadth, and outcome‑based selling. Gross margins in the low‑to‑mid 70s and expanding non‑GAAP operating margins suggest leverage to price/mix, and user posts corroborate material renewal increases in some cases.

However, bundle competition from Microsoft security SKUs and Cisco+Splunk, plus budget scrutiny, can cap headline price hikes and shift value capture toward platform TCO savings.

The net is good but not unlimited pricing power, with further upside if AI modules and identity controls become mission‑critical primitives inside Cortex/XSIAM and Prisma AIRS.