What is Palo Alto Networks, Inc.'s deferred costs?

Palo Alto Networks, Inc. (PANW) reported deferred costs of $424.00M in Q4 2025.

How has Palo Alto Networks, Inc.'s deferred costs changed year-over-year?

Palo Alto Networks, Inc.'s deferred costs increased by 12.7% year-over-year, from $376.10M to $424.00M.

What is the long-term trend for Palo Alto Networks, Inc.'s deferred costs?

Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s deferred costs has grown at a 11.0% compound annual growth rate (CAGR), from $276.50M to $419.00M.

What does deferred costs mean?

The portion of sales-related contract costs that will be expensed within the next year.

Current Assets

Deferred costs

Palo Alto Networks, Inc. Deferred costs increased by 2.2% to $424.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 12.7%, from $376.10M to $424.00M. Over 4 years (FY 2021 to FY 2025), Deferred costs shows an upward trend with a 11.0% CAGR.

Analysis

StatementBalance Sheet Statement

SectionCurrent Assets

CategoryEfficiency

SignalContext dependent

VolatilityStable

First reportedQ3 2025

Last reportedQ1 2026

How to read this metric

An increase often signals strong sales growth and high customer acquisition activity, while a decrease may suggest slowing sales or changes in commission structures.

Detailed definition

These are incremental costs of obtaining a contract, such as sales commissions, that are expected to be recovered and ar...

Peer comparison

Standard in SaaS companies under ASC 606, often labeled as 'Deferred contract costs'.

Metric ID: current_assets_capitalized_contract_cost_net_current

Historical Data

10 periods

	Q2 '21	Q2 '22	Q2 '23	Q2 '24	Q3 '24	Q4 '24	Q1 '25	Q2 '25	Q3 '25	Q4 '25
Value	$276.50M	$317.70M	$339.20M	$369.00M	$367.60M	$376.10M	$387.10M	$419.00M	$415.00M	$424.00M
QoQ Change	—	+14.9%	+6.8%	+8.8%	-0.4%	+2.3%	+2.9%	+8.2%	-1.0%	+2.2%
YoY Change	—	+14.9%	+6.8%	+8.8%	—	—	—	+13.6%	+12.9%	+12.7%

Range$276.50M – $424.00M

CAGR+20.9%

Avg YoY Growth+11.6%

Median YoY Growth+12.8%

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Frequently Asked Questions

What is Palo Alto Networks, Inc.'s deferred costs?: Palo Alto Networks, Inc. (PANW) reported deferred costs of $424.00M in Q4 2025.
How has Palo Alto Networks, Inc.'s deferred costs changed year-over-year?: Palo Alto Networks, Inc.'s deferred costs increased by 12.7% year-over-year, from $376.10M to $424.00M.
What is the long-term trend for Palo Alto Networks, Inc.'s deferred costs?: Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s deferred costs has grown at a 11.0% compound annual growth rate (CAGR), from $276.50M to $419.00M.
What does deferred costs mean?: The portion of sales-related contract costs that will be expensed within the next year.