Service — Total Cost of Revenue
Palo Alto Networks, Inc. Service — Total Cost of Revenue increased by 1.1% to $549.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 14.6%, from $479.10M to $549.00M. Over 4 years (FY 2021 to FY 2025), Service — Total Cost of Revenue shows an upward trend with a 21.6% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase relative to revenue suggests declining margins or rising infrastructure costs, while a decrease relative to revenue indicates improved operational leverage.
Detailed definition
This metric captures the direct costs associated with delivering subscription services and support, including cloud infr...
Peer comparison
Comparable to 'Cost of Services' or 'Cost of Subscription Revenue' in the software and cloud infrastructure sectors.
panw_segment_subscription_and_support_total_cost_of_revenueHistorical Data
| 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 | $248.70M | $270.10M | $291.70M | $307.50M | $314.50M | $349.50M | $341.80M | $365.70M | $381.40M | $402.50M | $395.40M | $410.90M | $435.70M | $469.00M | $479.10M | $497.90M | $518.60M | $542.80M | $549.00M |
| QoQ Change | — | +8.6% | +8.0% | +5.4% | +2.3% | +11.1% | -2.2% | +7.0% | +4.3% | +5.5% | -1.8% | +3.9% | +6.0% | +7.6% | +2.2% | +3.9% | +4.2% | +4.7% | +1.1% |
| YoY Change | — | — | — | — | +26.5% | +29.4% | +17.2% | +18.9% | +21.3% | +15.2% | +15.7% | +12.4% | +14.2% | +16.5% | +21.2% | +21.2% | +19.0% | +15.7% | +14.6% |
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Frequently Asked Questions
- What is Palo Alto Networks, Inc.'s service — total cost of revenue?
- Palo Alto Networks, Inc. (PANW) reported service — total cost of revenue of $549.00M in Q4 2025.
- How has Palo Alto Networks, Inc.'s service — total cost of revenue changed year-over-year?
- Palo Alto Networks, Inc.'s service — total cost of revenue increased by 14.6% year-over-year, from $479.10M to $549.00M.
- What is the long-term trend for Palo Alto Networks, Inc.'s service — total cost of revenue?
- Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s service — total cost of revenue has grown at a 21.6% compound annual growth rate (CAGR), from $899.40M to $1.96B.
- What does service — total cost of revenue mean?
- The direct expenses incurred to provide and maintain subscription services and customer support.