Total Cost of Revenue
Palo Alto Networks, Inc. Total Cost of Revenue increased by 7.4% to $685.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 14.4%, from $599.00M to $685.00M. Over 4 years (FY 2021 to FY 2025), Total Cost of Revenue shows an upward trend with a 17.8% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase relative to revenue suggests rising production costs or margin compression, while a decrease suggests improved operational efficiency.
Detailed definition
Total cost of revenue includes the direct costs attributable to the production of goods or the delivery of services sold...
Peer comparison
Varies by industry; for medical device manufacturers, this includes significant manufacturing and supply chain costs.
total_cost_of_revenueHistorical Data
| Q1 '21 | Q2 '21 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $330.60M | $358.90M | $380.60M | $405.30M | $440.50M | $492.30M | $461.90M | $466.20M | $474.80M | $506.80M | $472.80M | $499.10M | $513.60M | $573.70M | $554.00M | $599.00M | $619.30M | $679.00M | $638.00M | $685.00M |
| QoQ Change | — | +8.6% | +6.0% | +6.5% | +8.7% | +11.8% | -6.2% | +0.9% | +1.8% | +6.7% | -6.7% | +5.6% | +2.9% | +11.7% | -3.4% | +8.1% | +3.4% | +9.6% | -6.0% | +7.4% |
| YoY Change | — | — | — | — | +33.2% | +37.2% | +21.4% | +15.0% | +7.8% | +2.9% | +2.4% | +7.1% | +8.2% | +13.2% | +17.2% | +20.0% | +20.6% | +18.4% | +15.2% | +14.4% |
Product Breakdown
| Segment | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|
| Subscription and support | $435.70M | $469.00M | $479.00M | $498.00M | $518.60M | $542.80M | $549.00M | $570.00M |
| Product | $77.90M | $104.70M | $75.00M | $101.00M | $100.70M | $136.20M | $89.00M | $115.00M |
| Total | $513.60M | $573.70M | $554.00M | $599.00M | $619.30M | $679.00M | $638.00M | $685.00M |
Total Cost of Revenue at Other Companies
Frequently Asked Questions
- What is Palo Alto Networks, Inc.'s total cost of revenue?
- Palo Alto Networks, Inc. (PANW) reported total cost of revenue of $685.00M in Q4 2025.
- How has Palo Alto Networks, Inc.'s total cost of revenue changed year-over-year?
- Palo Alto Networks, Inc.'s total cost of revenue increased by 14.4% year-over-year, from $599.00M to $685.00M.
- What is the long-term trend for Palo Alto Networks, Inc.'s total cost of revenue?
- Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s total cost of revenue has grown at a 17.8% compound annual growth rate (CAGR), from $1.27B to $2.45B.
- What does total cost of revenue mean?
- The direct costs incurred to produce the goods or services that a company sold during a specific period.