What is Palo Alto Networks, Inc.'s subscription and support — total cost of revenue?

Palo Alto Networks, Inc. (PANW) reported subscription and support — total cost of revenue of $807.00M in Q1 2026.

How has Palo Alto Networks, Inc.'s subscription and support — total cost of revenue changed year-over-year?

Palo Alto Networks, Inc.'s subscription and support — total cost of revenue increased by 55.8% year-over-year, from $518.00M to $807.00M.

What is the long-term trend for Palo Alto Networks, Inc.'s subscription and support — total cost of revenue?

Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s subscription and support — total cost of revenue has grown at a 20.5% compound annual growth rate (CAGR), from $966.40M to $2.04B.

What does subscription and support — total cost of revenue mean?

The direct expenses incurred to provide and maintain subscription services and customer support.

Products & Services · Total Cost of Revenue

Subscription and support — Total Cost of Revenue

Palo Alto Networks, Inc. Subscription and support — Total Cost of Revenue increased by 41.6% to $807.00M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 55.8%, from $518.00M to $807.00M. Over 4 years (FY 2021 to FY 2025), Subscription and support — Total Cost of Revenue shows an upward trend with a 20.5% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementSegment

CategoryEfficiency

SignalLower is better

VolatilityModerate

First reportedQ1 2017

Last reportedQ3 2026Jun 3, 2026

Rolls up toTotal Cost of Revenue

How to read this metric

An increase relative to revenue suggests declining margins or rising infrastructure costs, while a decrease relative to revenue indicates improved operational leverage.

Detailed definition

This metric captures the direct costs associated with delivering subscription services and support, including cloud infr...

Peer comparison

Comparable to 'Cost of Services' or 'Cost of Subscription Revenue' in the software and cloud infrastructure sectors.

Metric ID: panw_segment_subscription_and_support_total_cost_of_revenue

Historical Data

21 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	Q3 '26
Value	$248.70M	$270.10M	$291.70M	$307.50M	$314.50M	$349.50M	$341.80M	$365.70M	$381.40M	$402.50M	$395.40M	$410.90M	$435.70M	$469.00M	$479.00M	$498.00M	$518.00M	$543.40M	$549.00M	$570.00M	$807.00M
QoQ Change	—	+8.6%	+8.0%	+5.4%	+2.3%	+11.1%	-2.2%	+7.0%	+4.3%	+5.5%	-1.8%	+3.9%	+6.0%	+7.6%	+2.1%	+4.0%	+4.0%	+4.9%	+1.0%	+3.8%	+41.6%
YoY Change	—	—	—	—	+26.5%	+29.4%	+17.2%	+18.9%	+21.3%	+15.2%	+15.7%	+12.4%	+14.2%	+16.5%	+21.1%	+21.2%	+18.9%	+15.9%	+14.6%	+14.5%	+55.8%

Range$248.70M – $807.00M

CAGR+26.5%

Avg YoY Growth+20.5%

Median YoY Growth+17.2%

Current Streak10 quarters growth

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Frequently Asked Questions

What is Palo Alto Networks, Inc.'s subscription and support — total cost of revenue?: Palo Alto Networks, Inc. (PANW) reported subscription and support — total cost of revenue of $807.00M in Q1 2026.
How has Palo Alto Networks, Inc.'s subscription and support — total cost of revenue changed year-over-year?: Palo Alto Networks, Inc.'s subscription and support — total cost of revenue increased by 55.8% year-over-year, from $518.00M to $807.00M.
What is the long-term trend for Palo Alto Networks, Inc.'s subscription and support — total cost of revenue?: Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s subscription and support — total cost of revenue has grown at a 20.5% compound annual growth rate (CAGR), from $966.40M to $2.04B.
What does subscription and support — total cost of revenue mean?: The direct expenses incurred to provide and maintain subscription services and customer support.