Product — Total Cost of Revenue
Palo Alto Networks, Inc. Product — Total Cost of Revenue increased by 45.2% to $167.00M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 65.3%, from $101.00M to $167.00M. Over 4 years (FY 2021 to FY 2025), Product — Total Cost of Revenue shows an upward trend with a 7.6% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase relative to revenue indicates margin compression due to rising manufacturing or logistics costs, while a decrease suggests improved supply chain efficiency or economies of scale.
Detailed definition
This metric captures the direct costs associated with producing and delivering hardware products and perpetual software...
Peer comparison
Comparable to cost of goods sold (COGS) for hardware segments in technology and networking equipment companies.
panw_segment_product_total_cost_of_revenueHistorical Data
| 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 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $81.90M | $88.80M | $88.90M | $97.80M | $126.00M | $142.80M | $120.10M | $100.50M | $93.40M | $104.30M | $77.40M | $88.20M | $77.90M | $104.70M | $75.00M | $101.00M | $101.00M | $136.20M | $89.00M | $115.00M | $167.00M |
| QoQ Change | — | +8.4% | +0.1% | +10.0% | +28.8% | +13.3% | -15.9% | -16.3% | -7.1% | +11.7% | -25.8% | +14.0% | -11.7% | +34.4% | -28.4% | +34.7% | +0.0% | +34.9% | -34.7% | +29.2% | +45.2% |
| YoY Change | — | — | — | — | +53.8% | +60.8% | +35.1% | +2.8% | -25.9% | -27.0% | -35.6% | -12.2% | -16.6% | +0.4% | -3.1% | +14.5% | +29.7% | +30.1% | +18.7% | +13.9% | +65.3% |
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Frequently Asked Questions
- What is Palo Alto Networks, Inc.'s product — total cost of revenue?
- Palo Alto Networks, Inc. (PANW) reported product — total cost of revenue of $167.00M 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 $101.00M to $167.00M.
- 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 $308.50M to $413.20M.
- What does product — total cost of revenue mean?
- The total direct costs incurred to manufacture and deliver physical security products.