The February 2024 ResetNarrow moat

Palo Alto Networks (PANW) — moat facet

Palo Alto accepted a 28% one-day share fall to give products away, and bet that consolidated customers would never leave.

Platformization began with a deliberate sacrifice. In February 2024 Palo Alto cut its full-year billings guidance to $10.1 billion to $10.2 billion from $10.7 billion to $10.8 billion1, because it had decided to give customers products free for a period to persuade them to consolidate onto its platform. Nikesh Arora said such customers "will not pay us for our technology for a period of time"2.

Billings growth by fiscal year (%)37.0%FY202223.1%FY202311.0%FY2024~2.8%FY2025 calc~21%FY2026 calcPalo Alto Form 10-K FY2024; FY2025-26 calculated from revenue and deferred revenue
Billings slowed sharply after the reset, then recovered with acquisitions.

The market's verdict was instant. The shares fell 28% in a day, "the worst trading session since the cybersecurity hardware and software maker's 2012 initial public offering"3.

The cost showed up in billings. Billings grew 37.0% in fiscal 2022 and 23.1% in fiscal 2023, then 11.0% in fiscal 2024, to $10,208.1 million4. The fiscal 2024 annual report was the last to show the figure; calculated from revenue and the change in deferred revenue, billings grew only about 2.8% in fiscal 20255.

What the company bought with that sacrifice is the platform deal: a customer who retires several vendors and moves most of its security to Palo Alto. Such a customer is harder to lose, because unwinding it means replacing several products at once. Palo Alto now reports net revenue retention above 120% for its platformized cohort6, which is the return on the free months.

The reset came after two years of rapid billings growth that had flattered the company. Billings were $4,301.7 million in fiscal 2020, $5,452.2 million in fiscal 2021 and $7,471.5 million in fiscal 20227, far faster growth than revenue, as customers signed long contracts and paid upfront. Part of what the reset gave up was a habit of multi-year prepayment that the company is now replacing with annual billing.

Two and a half years later the reset looks more like investment than retreat. The market value at the July fiscal year-end went from $105,148 million in 2024 to $270,441 million in 20268. The weakness is that the evidence now comes from metrics the company chooses. Calculated billings are the independent check: about $12.7 billion in fiscal 2026, up about 21%9, though that estimate includes deferred revenue brought in with Chronosphere. If calculated billings grow slower than revenue in fiscal 2027, the free months are still being paid for.

Moat trajectory: Widening

Market value at fiscal year-end $105bn (2024) to $270bn (2026).

The number that tests this moat
Moat Explorer calc
Billings, calculated, full year
About $12.7bn (FY2026), up about 21%

The independent check on the free months; billings growing slower than revenue would mean consolidation is still being bought.

How it's calculated: Revenue plus the change in total deferred revenue, less $776M of deferred revenue acquired with CyberArk; Chronosphere deferred revenue not separated, so approximate.
Source: Moat Explorer calculation from Palo Alto filings ↗
⚠ Threats to the moat
⚠ THREAT 01
Free Now, Paid Later
Palo Alto stopped publishing billings just as its free-product deals made them the most revealing number it had.
References
  1. ReportedIn February 2024 Palo Alto cut its full-year billings guidance to $10.1 billion to $10.2 billion from $10.7 billion to $10.8 billion, because it had decided to give customers products free for a period to persuade them to consolidate onto its platform.
    CNBC on 20 February 2024 - Palo Alto Networks cut full-year billings guidance to $10.1-$10.2 billion from $10.7-$10.8 billion. — February 2024 · publ. 20 February 2024 · source ↗
  2. ReportedNikesh Arora said such customers "will not pay us for our technology for a period of time".
    CNBC on 21 February 2024 - Palo Alto Networks shares fell 28%, the worst session since the 2012 IPO, after the platformization reset. — February 2024 · publ. 21 February 2024 · source ↗
  3. ReportedThe shares fell 28% in a day, "the worst trading session since the cybersecurity hardware and software maker's 2012 initial public offering".
    CNBC on 21 February 2024 - Palo Alto Networks shares fell 28%, the worst session since the 2012 IPO, after the platformization reset. — February 2024 · publ. 21 February 2024 · source ↗
  4. ReportedBillings grew 37.0% in fiscal 2022 and 23.1% in fiscal 2023, then 11.0% in fiscal 2024, to $10,208.1 million.
    Palo Alto Networks Form 10-K for fiscal 2024 - billings for fiscal 2022-2024, remaining performance obligations, free cash flow, distributor concentration and the Dig, Talon and IBM QRadar transactions. — FY2024 · publ. September 2024 · source ↗
  5. Moat Explorer calcThe fiscal 2024 annual report was the last to show the figure; calculated from revenue and the change in deferred revenue, billings grew only about 2.8% in fiscal 2025.
    Moat Explorer calculation from Palo Alto Networks' reported figures ($ millions unless stated; fiscal years end 31 July). Growth: revenue FY2026 11,480 / 9,221.5 - 1 = 24.5%; FY2025 9,221.5 / 8,027.5 - 1 = 14.9%; FY2024 8,027.5 / 6,892.7 - 1 = 16.5%; FY2023 25.3%; FY2022 29.3%; FY2021 24.9%; FY2020 17.5%; FY2024 to FY2026 11,480 / 8,027.5 - 1 = 43%; compound FY2015-FY2026 (11,480 / 928.1)^(1/11) - 1 = 25.7%, about 26%. By type FY2026: product 2,280 / 1,801.9 - 1 = 26.5%; subscription 6,239 / 4,974.4 - 1 = 25.4%; support 2,961 / 2,445.2 - 1 = 21.1%. Product FY2025 12.4%, FY2024 1,603.3 / 1,578.4 - 1 = 1.6%, FY2020 1,064.2 / 1,096.2 - 1 = -2.9%. Subscription FY2017 53.7%, FY2019 36.2%, FY2021 35.1%, FY2023 31.4%, FY2024 25.6%, FY2025 18.8%. Support FY2022 29.3%, FY2023 23.7%, FY2024 13.0%, FY2025 9.4%. Compound FY2015-FY2026: subscription (6,239 / 212.7)^(1/11) - 1 = 36.0%; support (2,961 / 222.7)^(1/11) - 1 = 26.5%; product (2,280 / 492.7)^(1/11) - 1 = 14.9%. Product outgrew subscription in FY2026 (26.5% against 25.4%), which it did not in any year FY2016-FY2025. Organic: FY2026 (11,480 - 930) / 9,221 - 1 = 14.4%; Q4 acquisition revenue 930 - 388 = 542; Q4 (3,410 - 542) / 2,536 - 1 = 13.1%, about 13%; pro forma 12,312 / 10,486 - 1 = 17.4%; FY2027 guidance 14.15 / 12.312 - 1 = 14.9%, about 15%. Margins: gross margin FY2026 8,077 / 11,480 = 70.4% (FY2025 6,769.9 / 9,221.5 = 73.4%; FY2024 5,968.3 / 8,027.5 = 74.3%); Q4 GAAP 2,304 / 3,410 = 67.6%. Product gross margin (2,280 - 568) / 2,280 = 75.1% (FY2025 (1,801.9 - 413) / 1,801.9 = 77.1%); subscription and support (9,200 - 2,835) / 9,200 = 69.2% (FY2025 (7,419.6 - 2,038) / 7,419.6 = 72.5%). Operating margin 695 / 11,480 = 6.1% (FY2025 1,242.9 / 9,221.5 = 13.5%); non-GAAP 3,356 / 11,480 = 29.2% (FY2025 2,652 / 9,221.5 = 28.8%); Q4 non-GAAP 1,011 / 3,410 = 29.6%; gap 3,356 - 695 = 2,661. R&D 2,552 / 11,480 = 22.2%; sales and marketing 3,931 / 11,480 = 34.2%; capital expenditure 440 / 11,480 = 3.8%. Tax 229 / (307 + 229 = 536) = 42.7%. Mix: product share 492.7 / 928.1 = 53.1% (FY2015), 2,280 / 11,480 = 19.9% (FY2026); subscription 212.7 / 928.1 = 22.9%, 6,239 / 11,480 = 54.3%; support 222.7 / 928.1 = 24.0%, 2,961 / 11,480 = 25.8%; one point of share 1% x 11,480 = 115. Recurring share 435.4 / 928.1 = 46.9% (FY2015), 1,393.8 / 2,273.6 = 61.3% (FY2018), 3,135.8 / 4,256.1 = 73.7% (FY2021), 6,424.2 / 8,027.5 = 80.0% (FY2024). Subscription and support per dollar of product 435.4 / 492.7 = 0.88 (FY2015), 1,393.8 / 879.8 = 1.58 (FY2018), 3,135.8 / 1,120.3 = 2.80 (FY2021), 6,424.2 / 1,603.3 = 4.01 (FY2024), 9,200 / 2,280 = 4.04 (FY2026). Hardware about 10% x 11,480 = about 1,150, about 50% of product. NGS ARR 9.10 / 11.48 = 79% of revenue. United States 7,108 / 11,480 = 61.9% (FY2016 901.8 / 1,378.5 = 65.4%). Q4 share of year 3,410 / 11,480 = 29.7%, about 30%. Prisma AIRS ARR 100 / 11,480 = under 1%. ARR and RPO: Q3 acquired ARR 1.6 / 8.1 = 20%, about a fifth; Q3 organic 8.1 - 1.6 = 6.5; Q3 acquired RPO 1.8 / 18.4 = 10%; FY2023 NGS ARR 4.2 / 1.43 = about 2.9; FY2025 growth 5.6 / 4.2 - 1 = 33%; Q1 FY2027 net new 9.54 - 9.10 = 0.44 to 9.56 - 9.10 = 0.46 billion; FY2030 target (20 / 9.1)^(1/4) - 1 = 21.8% a year; RPO / revenue 21.2 / 11.48 = 1.85; RPO due in 12 months 1.7 / 3.1 = 55% (FY2019), 2.2 / 4.3 = 51% (FY2020), 3.1 / 5.9 = 53% (FY2021), 4.1 / 8.2 = 50% (FY2022), 5.1 / 10.6 = 48% (FY2023), 5.9 / 12.7 = 46% (FY2024), 7.0 / 15.8 = 44% (FY2025), 9.3 / 21.2 = 44% (FY2026); RPO beyond 12 months 21.2 - 9.3 = 11.9 billion; Idira guidance 1.5 / 1.26 - 1 = 19%; Network and AI Security FY2025 8.35 / 1.17 = about 7.14 billion. Revenue from prior deferred 6.2 / 5.5 - 1 = 13%. Cash, deferred revenue and stock pay: free cash flow margin 4,113 / 11,480 = 35.8%; share-based compensation (cash flow) 1,774 / 11,480 = 15.5%; 1,774 / 1,295 - 1 = 37%; 1,774 / 4,113 = 43%; free cash flow after stock pay 4,113 - 1,774 = 2,339, 2,339 / 11,480 = 20.4%, 2,339 / 306,540 = 0.76%; free cash flow 4,113 / 306,540 = 1.3% and 4,113 / 27,492 = 15%. Stock pay share of revenue FY2016 392.8 / 1,378.5 = 28.5%, FY2020 658.4 / 3,408.4 = 19.3%, FY2024 1,076 / 8,027.5 = 13.4%, FY2025 1,295 / 9,221.5 = 14.0%. 10-K share-based compensation 1,815 / 1,079 - 1 = 68%. Equity plan (26.1 + 24.3) / 818 = 6%. Net cash 2,514 + 557 + 4,835 - 1,774 = 6,132; cash and investments 2,514 + 557 + 4,835 = 7,906, about 7.9 billion. Deferred revenue 1,582.1 + 1,306.6 = 2,888.7 (FY2019); 2,741.9 + 2,282.1 = 5,024.0 (FY2021); 4,674.6 + 4,621.8 = 9,296.4 (FY2023); 6,302.2 + 6,449.7 = 12,751.9 (FY2025); 7,747 + 7,009 = 14,756 (FY2026); 14,756 / 11,480 = 1.29 times; 2,888.7 / 2,899.6 = about one year (FY2019); growth 14,756 / 12,751.9 - 1 = 15.7%; excluding CyberArk (14,756 - 776) / 12,751.9 - 1 = 9.6%. Billings FY2025 9,221.5 + (12,751.9 - 11,480.5) = 10,493, 10,493 / 10,208.1 - 1 = 2.8%; FY2026 11,480 + (14,756 - 12,752) - 776 = about 12,708, 12,708 / 10,493 - 1 = 21%; February 2024 guidance cut 10.7 - 10.1 = 0.6 billion. Acquisitions: fiscal 2019 378.1 + 474.2 + 158.2 + 292.9 + 82.7 + 36.8 + 103.1 = 1,526; fiscal 2020 144.1 + 66.4 = 210.5; fiscal 2021 797.2 + 227.7 + 156.9 + 27.0 = 1,209; fiscal 2024 255.4 + 458.6 = 714; fiscal 2025 1,143 + 635 = 1,778; fiscal 2026 2,951 + 21,061 + 231 + 117 = 24,360, about 24.4 billion; all twenty-two FY2019-FY2026 including Cider 198.3 = 29,996, about 30.0 billion; FY2026 against FY2019-FY2025 24,360 / 5,636 = 4.3 times; after year end 325 + 500 = 825; AI security 635 + 231 + 117 = 983. CyberArk shares 18,488 / 112 = about 165 a share; 25,000 - 21,061 = about 3.9 billion; 112 x 374.74 = about 42.0 billion; 112 / 818 = 14%. Chronosphere 2,951 / 160 = about 18 times ARR. Goodwill and intangibles (22,010 + 7,017) / 48,460 = 60%; other assets 48,460 - 29,027 = 19,433. Headcount 21,921 - 4,223 = 17,698, 17,698 / 16,068 - 1 = 10%. Revenue per employee 928.1 / 2,637 = 0.35; 9,221.5 / 16,068 = 0.57; 11,480 / 21,921 = 0.52. Convertible loss Q1-Q3 562 - 524 = 38. Distributors: FY2019 31.8 + 22.1 + 10.7 + 10.0 = 74.6%; FY2021 33.2 + 12.2 + 10.6 = 56.0%; FY2023 25.0 + 12.8 + 11.9 = 49.7%; FY2024 21.2 + 13.2 + 13.2 + 11.4 = 59.0%; FY2025 18.8 + 14.4 + 11.0 = 44.2%; FY2026 15 + 15 = 30%; largest 34.4% (FY2020) to 15% (FY2026); receivables FY2019 29.9 + 18.9 + 14.2 = 63.0%. Valuation: market value over fiscal revenue at calendar year-end 15.13 / 0.928 = 16.3 (2015), 11.47 / 1.3785 = 8.3 (2016), 42.19 / 5.5015 = 7.7 (2022), 92.98 / 6.8927 = 13.5 (2023), 119.40 / 8.0275 = 14.9 (2024), 128.39 / 9.2215 = 13.9 (2025); 306.54 / 11.48 = 26.7; 306.54 / 0.307 = 998; 374.74 / 3.84 = 97.6; market value against Fortinet 306.54 / 130.12 = 2.4, against CrowdStrike 306.54 / 267.43 = 1.15; analyst target 395.70 / 374.74 - 1 = 6% - valuation, cash flow, stock pay, deferred revenue, billings and acquisitions. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Palo Alto Networks' Forms 10-K and results releases, the Q4 FY2026 earnings call and market data; operands shown in the source line.
  6. ReportedPalo Alto now reports net revenue retention above 120% for its platformized cohort, which is the return on the free months.
    Palo Alto Networks fourth-quarter fiscal 2026 earnings call transcript (Motley Fool) - platform revenue, platformized cohort retention, large deals and fiscal 2027 modelling points. — Q4 FY2026 · publ. 1 September 2026 · source ↗
  7. ReportedBillings were $4,301.7 million in fiscal 2020, $5,452.2 million in fiscal 2021 and $7,471.5 million in fiscal 2022, far faster growth than revenue, as customers signed long contracts and paid upfront.
    Palo Alto Networks Form 10-K for fiscal 2022 - revenue by type for fiscal 2020, billings, free cash flow for fiscal 2020-2022 and distributor concentration. — FY2022 · publ. September 2022 · source ↗
  8. ReportedThe market value at the July fiscal year-end went from $105,148 million in 2024 to $270,441 million in 2026.
    Palo Alto Networks ratios by fiscal year - market capitalisation at fiscal year-end: $49,728M (July 2022), $76,451M (2023), $105,148M (2024), $115,954M (2025), $270,441M (July 2026). — FY2022-FY2026 · publ. September 2026 · source ↗
  9. Moat Explorer calcCalculated billings are the independent check: about $12.7 billion in fiscal 2026, up about 21%, though that estimate includes deferred revenue brought in with Chronosphere.
    Moat Explorer calculation from Palo Alto Networks' reported figures ($ millions unless stated; fiscal years end 31 July). Growth: revenue FY2026 11,480 / 9,221.5 - 1 = 24.5%; FY2025 9,221.5 / 8,027.5 - 1 = 14.9%; FY2024 8,027.5 / 6,892.7 - 1 = 16.5%; FY2023 25.3%; FY2022 29.3%; FY2021 24.9%; FY2020 17.5%; FY2024 to FY2026 11,480 / 8,027.5 - 1 = 43%; compound FY2015-FY2026 (11,480 / 928.1)^(1/11) - 1 = 25.7%, about 26%. By type FY2026: product 2,280 / 1,801.9 - 1 = 26.5%; subscription 6,239 / 4,974.4 - 1 = 25.4%; support 2,961 / 2,445.2 - 1 = 21.1%. Product FY2025 12.4%, FY2024 1,603.3 / 1,578.4 - 1 = 1.6%, FY2020 1,064.2 / 1,096.2 - 1 = -2.9%. Subscription FY2017 53.7%, FY2019 36.2%, FY2021 35.1%, FY2023 31.4%, FY2024 25.6%, FY2025 18.8%. Support FY2022 29.3%, FY2023 23.7%, FY2024 13.0%, FY2025 9.4%. Compound FY2015-FY2026: subscription (6,239 / 212.7)^(1/11) - 1 = 36.0%; support (2,961 / 222.7)^(1/11) - 1 = 26.5%; product (2,280 / 492.7)^(1/11) - 1 = 14.9%. Product outgrew subscription in FY2026 (26.5% against 25.4%), which it did not in any year FY2016-FY2025. Organic: FY2026 (11,480 - 930) / 9,221 - 1 = 14.4%; Q4 acquisition revenue 930 - 388 = 542; Q4 (3,410 - 542) / 2,536 - 1 = 13.1%, about 13%; pro forma 12,312 / 10,486 - 1 = 17.4%; FY2027 guidance 14.15 / 12.312 - 1 = 14.9%, about 15%. Margins: gross margin FY2026 8,077 / 11,480 = 70.4% (FY2025 6,769.9 / 9,221.5 = 73.4%; FY2024 5,968.3 / 8,027.5 = 74.3%); Q4 GAAP 2,304 / 3,410 = 67.6%. Product gross margin (2,280 - 568) / 2,280 = 75.1% (FY2025 (1,801.9 - 413) / 1,801.9 = 77.1%); subscription and support (9,200 - 2,835) / 9,200 = 69.2% (FY2025 (7,419.6 - 2,038) / 7,419.6 = 72.5%). Operating margin 695 / 11,480 = 6.1% (FY2025 1,242.9 / 9,221.5 = 13.5%); non-GAAP 3,356 / 11,480 = 29.2% (FY2025 2,652 / 9,221.5 = 28.8%); Q4 non-GAAP 1,011 / 3,410 = 29.6%; gap 3,356 - 695 = 2,661. R&D 2,552 / 11,480 = 22.2%; sales and marketing 3,931 / 11,480 = 34.2%; capital expenditure 440 / 11,480 = 3.8%. Tax 229 / (307 + 229 = 536) = 42.7%. Mix: product share 492.7 / 928.1 = 53.1% (FY2015), 2,280 / 11,480 = 19.9% (FY2026); subscription 212.7 / 928.1 = 22.9%, 6,239 / 11,480 = 54.3%; support 222.7 / 928.1 = 24.0%, 2,961 / 11,480 = 25.8%; one point of share 1% x 11,480 = 115. Recurring share 435.4 / 928.1 = 46.9% (FY2015), 1,393.8 / 2,273.6 = 61.3% (FY2018), 3,135.8 / 4,256.1 = 73.7% (FY2021), 6,424.2 / 8,027.5 = 80.0% (FY2024). Subscription and support per dollar of product 435.4 / 492.7 = 0.88 (FY2015), 1,393.8 / 879.8 = 1.58 (FY2018), 3,135.8 / 1,120.3 = 2.80 (FY2021), 6,424.2 / 1,603.3 = 4.01 (FY2024), 9,200 / 2,280 = 4.04 (FY2026). Hardware about 10% x 11,480 = about 1,150, about 50% of product. NGS ARR 9.10 / 11.48 = 79% of revenue. United States 7,108 / 11,480 = 61.9% (FY2016 901.8 / 1,378.5 = 65.4%). Q4 share of year 3,410 / 11,480 = 29.7%, about 30%. Prisma AIRS ARR 100 / 11,480 = under 1%. ARR and RPO: Q3 acquired ARR 1.6 / 8.1 = 20%, about a fifth; Q3 organic 8.1 - 1.6 = 6.5; Q3 acquired RPO 1.8 / 18.4 = 10%; FY2023 NGS ARR 4.2 / 1.43 = about 2.9; FY2025 growth 5.6 / 4.2 - 1 = 33%; Q1 FY2027 net new 9.54 - 9.10 = 0.44 to 9.56 - 9.10 = 0.46 billion; FY2030 target (20 / 9.1)^(1/4) - 1 = 21.8% a year; RPO / revenue 21.2 / 11.48 = 1.85; RPO due in 12 months 1.7 / 3.1 = 55% (FY2019), 2.2 / 4.3 = 51% (FY2020), 3.1 / 5.9 = 53% (FY2021), 4.1 / 8.2 = 50% (FY2022), 5.1 / 10.6 = 48% (FY2023), 5.9 / 12.7 = 46% (FY2024), 7.0 / 15.8 = 44% (FY2025), 9.3 / 21.2 = 44% (FY2026); RPO beyond 12 months 21.2 - 9.3 = 11.9 billion; Idira guidance 1.5 / 1.26 - 1 = 19%; Network and AI Security FY2025 8.35 / 1.17 = about 7.14 billion. Revenue from prior deferred 6.2 / 5.5 - 1 = 13%. Cash, deferred revenue and stock pay: free cash flow margin 4,113 / 11,480 = 35.8%; share-based compensation (cash flow) 1,774 / 11,480 = 15.5%; 1,774 / 1,295 - 1 = 37%; 1,774 / 4,113 = 43%; free cash flow after stock pay 4,113 - 1,774 = 2,339, 2,339 / 11,480 = 20.4%, 2,339 / 306,540 = 0.76%; free cash flow 4,113 / 306,540 = 1.3% and 4,113 / 27,492 = 15%. Stock pay share of revenue FY2016 392.8 / 1,378.5 = 28.5%, FY2020 658.4 / 3,408.4 = 19.3%, FY2024 1,076 / 8,027.5 = 13.4%, FY2025 1,295 / 9,221.5 = 14.0%. 10-K share-based compensation 1,815 / 1,079 - 1 = 68%. Equity plan (26.1 + 24.3) / 818 = 6%. Net cash 2,514 + 557 + 4,835 - 1,774 = 6,132; cash and investments 2,514 + 557 + 4,835 = 7,906, about 7.9 billion. Deferred revenue 1,582.1 + 1,306.6 = 2,888.7 (FY2019); 2,741.9 + 2,282.1 = 5,024.0 (FY2021); 4,674.6 + 4,621.8 = 9,296.4 (FY2023); 6,302.2 + 6,449.7 = 12,751.9 (FY2025); 7,747 + 7,009 = 14,756 (FY2026); 14,756 / 11,480 = 1.29 times; 2,888.7 / 2,899.6 = about one year (FY2019); growth 14,756 / 12,751.9 - 1 = 15.7%; excluding CyberArk (14,756 - 776) / 12,751.9 - 1 = 9.6%. Billings FY2025 9,221.5 + (12,751.9 - 11,480.5) = 10,493, 10,493 / 10,208.1 - 1 = 2.8%; FY2026 11,480 + (14,756 - 12,752) - 776 = about 12,708, 12,708 / 10,493 - 1 = 21%; February 2024 guidance cut 10.7 - 10.1 = 0.6 billion. Acquisitions: fiscal 2019 378.1 + 474.2 + 158.2 + 292.9 + 82.7 + 36.8 + 103.1 = 1,526; fiscal 2020 144.1 + 66.4 = 210.5; fiscal 2021 797.2 + 227.7 + 156.9 + 27.0 = 1,209; fiscal 2024 255.4 + 458.6 = 714; fiscal 2025 1,143 + 635 = 1,778; fiscal 2026 2,951 + 21,061 + 231 + 117 = 24,360, about 24.4 billion; all twenty-two FY2019-FY2026 including Cider 198.3 = 29,996, about 30.0 billion; FY2026 against FY2019-FY2025 24,360 / 5,636 = 4.3 times; after year end 325 + 500 = 825; AI security 635 + 231 + 117 = 983. CyberArk shares 18,488 / 112 = about 165 a share; 25,000 - 21,061 = about 3.9 billion; 112 x 374.74 = about 42.0 billion; 112 / 818 = 14%. Chronosphere 2,951 / 160 = about 18 times ARR. Goodwill and intangibles (22,010 + 7,017) / 48,460 = 60%; other assets 48,460 - 29,027 = 19,433. Headcount 21,921 - 4,223 = 17,698, 17,698 / 16,068 - 1 = 10%. Revenue per employee 928.1 / 2,637 = 0.35; 9,221.5 / 16,068 = 0.57; 11,480 / 21,921 = 0.52. Convertible loss Q1-Q3 562 - 524 = 38. Distributors: FY2019 31.8 + 22.1 + 10.7 + 10.0 = 74.6%; FY2021 33.2 + 12.2 + 10.6 = 56.0%; FY2023 25.0 + 12.8 + 11.9 = 49.7%; FY2024 21.2 + 13.2 + 13.2 + 11.4 = 59.0%; FY2025 18.8 + 14.4 + 11.0 = 44.2%; FY2026 15 + 15 = 30%; largest 34.4% (FY2020) to 15% (FY2026); receivables FY2019 29.9 + 18.9 + 14.2 = 63.0%. Valuation: market value over fiscal revenue at calendar year-end 15.13 / 0.928 = 16.3 (2015), 11.47 / 1.3785 = 8.3 (2016), 42.19 / 5.5015 = 7.7 (2022), 92.98 / 6.8927 = 13.5 (2023), 119.40 / 8.0275 = 14.9 (2024), 128.39 / 9.2215 = 13.9 (2025); 306.54 / 11.48 = 26.7; 306.54 / 0.307 = 998; 374.74 / 3.84 = 97.6; market value against Fortinet 306.54 / 130.12 = 2.4, against CrowdStrike 306.54 / 267.43 = 1.15; analyst target 395.70 / 374.74 - 1 = 6% - valuation, cash flow, stock pay, deferred revenue, billings and acquisitions. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Palo Alto Networks' Forms 10-K and results releases, the Q4 FY2026 earnings call and market data; operands shown in the source line.
Sources
Generated September 26, 2026