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

Palo Alto Networks, Inc. (PANW) reported deferred costs of $526.00M 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 0.5% year-over-year, from $523.40M to $526.00M.

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 4.3% compound annual growth rate (CAGR), from $494.60M to $586.00M.

What does deferred costs mean?

The portion of sales-related contract costs that will be expensed after more than one year.

Non-Current Assets

Deferred costs

Palo Alto Networks, Inc. Deferred costs decreased by 3.7% to $526.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 0.5%, from $523.40M to $526.00M. Over 4 years (FY 2021 to FY 2025), Deferred costs shows an upward trend with a 4.3% CAGR.

Analysis

StatementBalance Sheet Statement

SectionNon-Current Assets

CategoryEfficiency

SignalContext dependent

VolatilityStable

First reportedQ3 2025

Last reportedQ1 2026

How to read this metric

An increase indicates a growing pipeline of long-term contracts, while a decrease may signal shorter contract durations or reduced acquisition spending.

Detailed definition

This represents the portion of incremental contract acquisition costs that will be amortized over a period exceeding one...

Peer comparison

Standard in SaaS companies, often grouped with other long-term deferred assets.

Metric ID: non_current_assets_capitalized_contract_cost_net_noncurrent

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	$494.60M	$550.10M	$547.10M	$562.00M	$531.90M	$523.40M	$528.20M	$586.00M	$546.00M	$526.00M
QoQ Change	—	+11.2%	-0.5%	+2.7%	-5.4%	-1.6%	+0.9%	+10.9%	-6.8%	-3.7%
YoY Change	—	+11.2%	-0.5%	+2.7%	—	—	—	+4.3%	+2.7%	+0.5%

Range$494.60M – $586.00M

CAGR+2.8%

Avg YoY Growth+3.5%

Median YoY Growth+2.7%

Current Streak2 quarters decline

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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 $526.00M 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 0.5% year-over-year, from $523.40M to $526.00M.
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 4.3% compound annual growth rate (CAGR), from $494.60M to $586.00M.
What does deferred costs mean?: The portion of sales-related contract costs that will be expensed after more than one year.