What is Palo Alto Networks, Inc.'s product — total cost of revenue?

Palo Alto Networks, Inc. (PANW) reported product — total cost of revenue of $89.00M in Q4 2025.

How has Palo Alto Networks, Inc.'s product — total cost of revenue changed year-over-year?

Palo Alto Networks, Inc.'s product — total cost of revenue increased by 18.7% year-over-year, from $75.00M to $89.00M.

What is the long-term trend for Palo Alto Networks, Inc.'s product — total cost of revenue?

Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s product — total cost of revenue has grown at a 5.6% compound annual growth rate (CAGR), from $307.00M to $381.70M.

What does product — total cost of revenue mean?

The total direct costs incurred to manufacture and deliver physical security products.

Products & Services · Total Cost of Revenue

Product — Total Cost of Revenue

Palo Alto Networks, Inc. Product — Total Cost of Revenue decreased by 34.7% to $89.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 18.7%, from $75.00M to $89.00M. Over 4 years (FY 2021 to FY 2025), Product — Total Cost of Revenue shows an upward trend with a 5.6% CAGR. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementSegment

CategoryProfitability

SignalLower is better

VolatilityStable

First reportedQ4 2016

Last reportedQ4 2025

Rolls up toTotal Cost of Revenue

How to read this metric

An increase relative to revenue indicates margin compression due to rising manufacturing or logistics costs, while a decrease suggests improved supply chain efficiency or economies of scale.

Detailed definition

This metric captures the direct costs associated with producing and delivering hardware products and perpetual software...

Peer comparison

Comparable to cost of goods sold (COGS) for hardware segments in technology and networking equipment companies.

Metric ID: panw_segment_product_total_cost_of_revenue

Historical Data

19 periods

	Q2 '21	Q3 '21	Q4 '21	Q1 '22	Q2 '22	Q3 '22	Q4 '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Q1 '24	Q2 '24	Q3 '24	Q4 '24	Q1 '25	Q2 '25	Q3 '25	Q4 '25
Value	$81.90M	$88.80M	$88.90M	$97.80M	$126.00M	$142.80M	$120.10M	$100.50M	$93.40M	$104.30M	$77.40M	$88.20M	$77.90M	$104.70M	$75.00M	$101.30M	$100.70M	$136.20M	$89.00M
QoQ Change	—	+8.4%	+0.1%	+10.0%	+28.8%	+13.3%	-15.9%	-16.3%	-7.1%	+11.7%	-25.8%	+14.0%	-11.7%	+34.4%	-28.4%	+35.1%	-0.6%	+35.3%	-34.7%
YoY Change	—	—	—	—	+53.8%	+60.8%	+35.1%	+2.8%	-25.9%	-27.0%	-35.6%	-12.2%	-16.6%	+0.4%	-3.1%	+14.9%	+29.3%	+30.1%	+18.7%

Range$75.00M – $142.80M

CAGR+1.9%

Avg YoY Growth+8.4%

Median YoY Growth+2.8%

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Frequently Asked Questions

What is Palo Alto Networks, Inc.'s product — total cost of revenue?: Palo Alto Networks, Inc. (PANW) reported product — total cost of revenue of $89.00M in Q4 2025.
How has Palo Alto Networks, Inc.'s product — total cost of revenue changed year-over-year?: Palo Alto Networks, Inc.'s product — total cost of revenue increased by 18.7% year-over-year, from $75.00M to $89.00M.
What is the long-term trend for Palo Alto Networks, Inc.'s product — total cost of revenue?: Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s product — total cost of revenue has grown at a 5.6% compound annual growth rate (CAGR), from $307.00M to $381.70M.
What does product — total cost of revenue mean?: The total direct costs incurred to manufacture and deliver physical security products.