Current Assets

Allowance for Credit Losses on Financing Receivables

Palo Alto Networks, Inc. Allowance for Credit Losses on Financing Receivables increased by 12.5% to $9.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 13.9%, from $7.90M to $9.00M. Over 2 years (FY 2023 to FY 2025), Allowance for Credit Losses on Financing Receivables shows an upward trend with a 35.9% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementBalance Sheet Statement
SectionCurrent Assets
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ4 2019
Last reportedQ4 2025

How to read this metric

An increase suggests higher perceived credit risk in the company's financing portfolio, while a decrease suggests improved credit quality.

Detailed definition

This is the valuation allowance established against financing receivables, such as loans or leases provided to customers...

Peer comparison

Common for companies with large captive finance divisions; comparable to loan loss reserves at financial institutions.

Metric ID: financing_receivable_allowance_for_credit_losses

Historical Data

14 periods
 Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25
Value$2.50M$3.10M$3.90M$4.60M$6.10M$8.00M$6.50M$8.90M$9.70M$7.90M$9.60M$8.50M$8.00M$9.00M
QoQ Change+24.0%+25.8%+17.9%+32.6%+31.1%-18.8%+36.9%+9.0%-18.6%+21.5%-11.5%-5.9%+12.5%
YoY Change+144.0%+158.1%+66.7%+93.5%+59.0%-1.3%+47.7%-4.5%-17.5%+13.9%
Range$2.50M$9.70M
CAGR+48.3%
Avg YoY Growth+56.0%
Median YoY Growth+53.4%

Frequently Asked Questions

What is Palo Alto Networks, Inc.'s allowance for credit losses on financing receivables?
Palo Alto Networks, Inc. (PANW) reported allowance for credit losses on financing receivables of $9.00M in Q4 2025.
How has Palo Alto Networks, Inc.'s allowance for credit losses on financing receivables changed year-over-year?
Palo Alto Networks, Inc.'s allowance for credit losses on financing receivables increased by 13.9% year-over-year, from $7.90M to $9.00M.
What is the long-term trend for Palo Alto Networks, Inc.'s allowance for credit losses on financing receivables?
Over 2 years (2023 to 2025), Palo Alto Networks, Inc.'s allowance for credit losses on financing receivables has grown at a 35.9% compound annual growth rate (CAGR), from $4.60M to $8.50M.
What does allowance for credit losses on financing receivables mean?
The reserve set aside to cover potential losses from loans or financing provided to customers.

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