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Palo Alto Networks, Inc. PANW Product — Total Cost of Revenue

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Other financials

Income statement

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Revenue$3.0B+31.1%
Gross profit$2.0B+21.4%
Operating income-$183.0M-184%
Net income-$177.0M-168%
EPS (diluted)-$0.22-159%

Balance sheet

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Cash & equivalents$2.4B-0.9%
Total debt$2.2B+206%
Total equity$27.7B+283%
Total assets$46.3B+110%

Cash flow

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Operating cash flow$871.0M+38.7%
CapEx$83.0M+22.1%
Free cash flow$788.0M+40.7%

Valuation

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Market cap$295.57B+156%
Enterprise value$295.42B+160%
P/E350.7×+249×
P/S27.9×+15.3×

Profitability

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Gross margin71.9%-1.6pp
Operating margin9.6%-1.5pp
Net margin7.9%-6.0pp
FCF margin35.8%+2.0pp

Returns & leverage

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Return on equity4.8%-16.3pp
Debt / equity0.1×0.0×
Current ratio0.9×0.0×

Where this comes from

Reported directly by Palo Alto Networks, Inc. in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The source filing: Palo Alto Networks, Inc.’s 10-Q, filed June 3, 2026.

Filed
Jun 2, 2026, 8:00 PM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q2 2026
Accession
0001327567-26-000015
Line itemThree Months Ended April 30, 2026Three Months Ended April 30, 2025Nine Months Ended April 30, 2026Nine Months Ended April 30, 2025
Subscription and support2,4081,8366,5285,457
Total revenue3,0022,2898,0706,685
Cost of revenue:
Product167101371277
Subscription and support8075181,9261,495
Total cost of revenue9746192,2971,772
Total gross profit2,0281,6705,7734,913
Operating expenses:

Item 1. Financial Statements

FAQ

What is Palo Alto Networks, Inc.'s product — total cost of revenue?
Palo Alto Networks, Inc. (PANW) reported product — total cost of revenue of $167M in Q1 2026.
How has Palo Alto Networks, Inc.'s product — total cost of revenue changed year-over-year?
Palo Alto Networks, Inc.'s product — total cost of revenue increased by 65.3% year-over-year, from $101M to $167M.
What is the long-term trend for Palo Alto Networks, Inc.'s product — total cost of revenue?
Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s product — total cost of revenue has grown at a 7.6% compound annual growth rate (CAGR), from $308.5M to $413.2M.
What does product — total cost of revenue mean?
This metric captures the direct costs associated with producing and delivering hardware products and perpetual software licenses, including manufacturing, shipping, and inventory-related expenses. It is a critical component for calculating the gross margin specifically for the product segment. Monitoring this helps assess the efficiency of the supply chain and the impact of hardware component costs on overall profitability.

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