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Palo Alto Networks, Inc. PANW Subscription and support — 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
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:
Research and development7344941,7731,480

Item 1. Financial Statements

FAQ

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 $807M 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 $518M to $807M.
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 $966.4M to $2.04B.
What does subscription and support — total cost of revenue mean?
This metric captures the direct costs associated with delivering subscription services and support, including cloud infrastructure hosting, customer support personnel, and data center operations. It is a key measure of the operational efficiency and scalability of the service delivery model. Monitoring this helps assess the gross margin profile of the recurring revenue stream.

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