Operating
Increase (Decrease) In Capitalized Contract Cost
Palo Alto Networks, Inc. Increase (Decrease) In Capitalized Contract Cost increased by 51.2% to $124.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 8.8%, from $114.00M to $124.00M. Over 4 years (FY 2021 to FY 2025), Increase (Decrease) In Capitalized Contract Cost shows an upward trend with a 5.9% CAGR.
Analysis
StatementCash Flow Statement
SectionOperating
CategoryEfficiency
SignalContext dependent
VolatilityModerate
First reportedQ1 2019
Last reportedQ2 2026Feb 18, 2026
How to read this metric
An increase suggests higher sales activity or commission expenses, which may precede future revenue recognition.
Detailed definition
This represents the net change in costs incurred to obtain a contract that are capitalized as assets and amortized over...
Peer comparison
Standard for SaaS and subscription-based companies following ASC 606 revenue recognition standards.
Metric ID:
operating_increase_decrease_in_capitalized_contract_costHistorical Data
20 periods
| 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 | Q1 '26 | Q2 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $110.20M | $110.20M | $114.70M | $114.70M | $114.70M | $114.70M | $107.98M | $107.98M | $107.98M | $107.98M | $63.30M | $96.00M | $125.90M | $204.10M | $79.00M | $114.00M | $135.40M | $226.60M | $82.00M | $124.00M |
| QoQ Change | — | +0.0% | +4.1% | +0.0% | +0.0% | +0.0% | -5.9% | +0.0% | +0.0% | +0.0% | -41.4% | +51.7% | +31.1% | +62.1% | -61.3% | +44.3% | +18.8% | +67.4% | -63.8% | +51.2% |
| YoY Change | — | — | — | — | +4.1% | +4.1% | -5.9% | -5.9% | -5.9% | -5.9% | -41.4% | -11.1% | +16.6% | +89.0% | +24.8% | +18.8% | +7.5% | +11.0% | +3.8% | +8.8% |
Range$63.30M – $226.60M
CAGR+2.5%
Avg YoY Growth+7.0%
Median YoY Growth+4.1%
Increase (Decrease) In Capitalized Contract Cost at Other Companies
Frequently Asked Questions
- What is Palo Alto Networks, Inc.'s increase (decrease) in capitalized contract cost?
- Palo Alto Networks, Inc. (PANW) reported increase (decrease) in capitalized contract cost of $124.00M in Q4 2025.
- How has Palo Alto Networks, Inc.'s increase (decrease) in capitalized contract cost changed year-over-year?
- Palo Alto Networks, Inc.'s increase (decrease) in capitalized contract cost increased by 8.8% year-over-year, from $114.00M to $124.00M.
- What is the long-term trend for Palo Alto Networks, Inc.'s increase (decrease) in capitalized contract cost?
- Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s increase (decrease) in capitalized contract cost has grown at a 5.9% compound annual growth rate (CAGR), from $440.80M to $555.00M.
- What does increase (decrease) in capitalized contract cost mean?
- The net change in costs capitalized for securing new customer contracts.