Palo Alto Networks Inc (PANW) stock — is it a good business?

Palo Alto Networks Inc (PANW) stock — is it a good business? — InspectStocks

How it makes money

Subscriptions54%
Support26%
Products20%

Shares of revenue are estimates for quarter ended April 30, 2026, not figures from a filing.

Competes with

What it sells6

Prisma Access
A cloud-based service that protects employees working remotely and branch offices as they connect to company applications and the internet.
Next-generation firewalls
Physical appliances and software that inspect network traffic and block threats in offices, data centers, and cloud networks.
Prisma AIRS
Tools for finding and protecting artificial intelligence applications, models, agents, and data, including by checking their behavior and controlling their access.

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Cortex XSIAM
A security operations product that brings together security alerts and data, helps analysts investigate attacks, and automates parts of the response.
Cortex Cloud
A cloud security product that helps companies find and address risks in applications and the cloud systems they run on.
Idira identity security
Tools for controlling and reviewing access for employees, administrators, service accounts, and artificial intelligence agents.

Who buys it4

Businesses in industries including financial services, healthcare, manufacturing, energy, education, internet and media, and telecommunications; they buy security products and services directly or through channel partners.
Government entities; they buy security products and services directly or through channel partners.
Service providers; they buy security products and services for their own use or to support services they provide to customers.
Many customers buy through distributors and resellers; some software firewalls and cloud firewall services are also sold through cloud marketplaces.

What it stands on, and what could break it

What the business leans on

1The company relies on distributors, resellers, and other channel partners to sell and deliver a substantial portion of its products and subscriptions. Two distributors together accounted for 30% of revenue (fiscal 2026, high).
2It outsources hardware manufacturing to manufacturing partners, including Flex, and relies on component suppliers; supply or price changes can affect its ability to ship hardware.
3Cloud-based products depend on data centers operated by third-party cloud providers.
4A large share of revenue comes from subscriptions and support that customers renew, so changes in sales or renewals affect revenue over time.

What could go wrong

1A significant security incident, or a flaw that lets an attack through a Palo Alto Networks product, could harm customers and the company's reputation and business.
2If channel partners do not sell or distribute products effectively, sales could be affected; two distributors together accounted for 30% of revenue (fiscal 2026, high).
3The company has recently added major businesses through acquisitions, including CyberArk and Chronosphere; integrating acquired teams and products could take management attention and fail to deliver the expected benefits.

Full financial statements →

About Palo Alto Networks Inc

The company makes tools that inspect network traffic, protect cloud applications and employee devices, manage access permissions, and help security teams detect and respond to cyberattacks. It also sells physical and software firewalls, cloud-based security subscriptions, identity security tools, and consulting and incident-response services.

Head office: Santa Clara, California
Founded: 2005
Employees: 21,921 (July 31, 2026, high)
Listed on: NASDAQ
Financial year ends: July 31

Built from Palo Alto Networks Inc’s own filings with the U.S. Securities and Exchange Commission (SEC). Figures are as reported, with per-share history restated onto today’s share basis. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.

Keep exploring

The themes Palo Alto Networks is part of, the highest-graded companies in its industry, and the companies in its sector whose grade rose recently.

The theme it is part of

Highest-graded in Software Infrastructure

Graded A or B and worth $2B or more: A first, then the largest.

All 158 graded companies in its industry

Grade rose recently in Technology

Rose to A or B on a filing in the last 90 days, worth $2B or more: largest first.

All grade rises