⚠ Attached Subscriptions Outside the HeadlineLow threat

Palo Alto Networks (PANW) — threat to the moat

Palo Alto's growth metric excludes the legacy subscriptions on its firewalls, so any migration between the two flatters the headline.

Palo Alto's headline growth metric deliberately leaves out part of its most dependable revenue. NGS ARR excludes hardware and the legacy subscriptions attached to firewalls1. That makes the metric a cleaner measure of the new business, but it also means the attach revenue on older products is not tracked in any disclosed figure.

Support revenue growth by fiscal year (%)29.3%FY202223.7%FY202313.0%FY20249.4%FY202521.1%FY2026Palo Alto Forms 10-K, support revenue; growth calculated
Support growth halved before CyberArk lifted it.

The attach ratio flattened after fiscal 2024: about $4.01 of recurring revenue per dollar of product in fiscal 2024 and about $4.04 in fiscal 20262. Product revenue grew about 26.5% in fiscal 20263, partly because CyberArk's on-premise licences are now counted as product4.

If legacy subscriptions are migrating to the newer products counted in NGS ARR, the company is moving revenue from one bucket to another and reporting the growth in the favourable one.

Palo Alto defines NGS ARR to exclude hardware and the legacy subscriptions attached to it, as its results release explains5. The company does not disclose how large the excluded subscriptions are. A reader can compare subscription and support revenue of $9,200 million6 with NGS ARR of $9.10 billion7, but the two measure different things and should not be netted against each other.

The support line is the independent check. It grew about 9.4% in fiscal 2025 and about 21.1% in fiscal 2026 with CyberArk8; a fall back below 10% in fiscal 2027 would mean the installed base is growing slowly beneath the headline.

References
  1. ReportedNGS ARR excludes hardware and the legacy subscriptions attached to firewalls.
    Palo Alto Networks fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - income statement, non-GAAP reconciliation, balance sheet, cash flow, Next-Generation Security ARR, remaining performance obligations and fiscal 2027 guidance - fourth-quarter and full-year results, balance sheet and cash flow. — Q4 FY2026 · publ. 1 September 2026 · source ↗
  2. Moat Explorer calcThe attach ratio flattened after fiscal 2024: about $4.01 of recurring revenue per dollar of product in fiscal 2024 and about $4.04 in fiscal 2026.
    Moat Explorer calculation from Palo Alto Networks' reported figures ($ 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% - revenue mix, concentration and geography. — 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.
  3. Moat Explorer calcProduct revenue grew about 26.5% in fiscal 2026, partly because CyberArk's on-premise licences are now counted as product.
    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% - growth rates and margins. — 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.
  4. ReportedProduct revenue grew about 26.5% in fiscal 2026, partly because CyberArk's on-premise licences are now counted as product.
    Palo Alto Networks Form 10-K for fiscal 2026 (year ended 31 July 2026) - Item 1 business and Item 7 MD&A: platforms, customers, channels, employees, revenue by type and geography. — FY2026 · publ. 10 September 2026 · source ↗
  5. ReportedPalo Alto defines NGS ARR to exclude hardware and the legacy subscriptions attached to it, as its results release explains.
    Palo Alto Networks fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - income statement, non-GAAP reconciliation, balance sheet, cash flow, Next-Generation Security ARR, remaining performance obligations and fiscal 2027 guidance - fourth-quarter and full-year results, balance sheet and cash flow. — Q4 FY2026 · publ. 1 September 2026 · source ↗
  6. ReportedA reader can compare subscription and support revenue of $9,200 million with NGS ARR of $9.10 billion, but the two measure different things and should not be netted against each other.
    Palo Alto Networks Form 10-K for fiscal 2026 (year ended 31 July 2026) - Item 1 business and Item 7 MD&A: platforms, customers, channels, employees, revenue by type and geography. — FY2026 · publ. 10 September 2026 · source ↗
  7. ReportedA reader can compare subscription and support revenue of $9,200 million with NGS ARR of $9.10 billion, but the two measure different things and should not be netted against each other.
    Palo Alto Networks fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - income statement, non-GAAP reconciliation, balance sheet, cash flow, Next-Generation Security ARR, remaining performance obligations and fiscal 2027 guidance - fourth-quarter and full-year results, balance sheet and cash flow. — Q4 FY2026 · publ. 1 September 2026 · source ↗
  8. Moat Explorer calcIt grew about 9.4% in fiscal 2025 and about 21.1% in fiscal 2026 with CyberArk; a fall back below 10% in fiscal 2027 would mean the installed base is growing slowly beneath the headline.
    Moat Explorer calculation from Palo Alto Networks' reported figures ($ 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% - growth rates and margins. — 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