• The Microsoft of enterprise cybersecurity.
• The Cisco of next-generation security.
• The Salesforce of cybersecurity platforms.

• Next-Generation Firewalls (NGFWs): These are network security appliances (physical or virtual) that provide advanced threat prevention and control over network traffic.
• Prisma Cloud: A comprehensive cloud-native security platform that secures applications across the entire development lifecycle, from code to cloud. (Category: Cloud Security Service)
• Cortex XDR: An extended detection and response platform that integrates endpoint, network, and cloud data to stop sophisticated attacks. (Category: Security Operations Service)
• Cortex XSOAR: A security orchestration, automation, and response platform that automates security operations and incident response workflows. (Category: Security Operations Service)
• WildFire: A cloud-based threat intelligence service that analyzes unknown files and URLs to identify and prevent zero-day exploits. (Category: Threat Intelligence Service)

Palo Alto Networks (symbol: PANW) primarily sells its cybersecurity products and services to other companies and organizations, operating on a Business-to-Business (B2B) model. Due to the nature of its cybersecurity business, its extensive global reach, and a broad, diversified customer base, Palo Alto Networks does not publicly disclose the specific names of its individual major end-user customer companies.

Instead, its major customers span a wide range of industries and sectors globally. These can be broadly categorized as:

• Large Enterprises: This segment includes multinational corporations and large organizations across virtually all industries, such as financial services, healthcare, technology, manufacturing, energy, and retail. These companies leverage Palo Alto Networks' comprehensive security platforms to protect their complex networks, cloud environments, and endpoints from sophisticated cyber threats.
• Government Agencies: Palo Alto Networks serves various government entities at federal, state, and local levels, including defense organizations, intelligence agencies, and public sector institutions that require robust and highly secure infrastructure to protect sensitive data and critical operations.
• Service Providers: This category includes telecommunications companies, cloud service providers, and Managed Security Service Providers (MSSPs). These providers either utilize Palo Alto Networks' technologies to secure their own critical infrastructure or integrate them into their offerings to provide advanced security services to their own clients.

• Amazon Web Services (AMZN)
• Microsoft Azure (MSFT)
• Google Cloud Platform (GOOGL)

The increasing maturity and breadth of native cloud security services offered by hyperscale cloud providers (e.g., AWS Security Hub, AWS GuardDuty, Microsoft Defender for Cloud, Azure Sentinel, Google Cloud Security Command Center). As these platforms enhance their security capabilities and integrate them more deeply into their infrastructure, enterprises may increasingly rely on these native tools for foundational and even advanced cloud security, potentially reducing the need for third-party cloud security platforms like Palo Alto Networks' Prisma Cloud for certain use cases or for customers heavily invested in a single cloud provider. This trend could exert pressure on the growth and market share of independent cloud security vendors.

Palo Alto Networks (PANW) operates within a significant and expanding global cybersecurity market.

The company's total addressable market (TAM) for its core security segments is estimated at $110 billion, with a projected compound annual growth rate (CAGR) of 14%. A broader cybersecurity landscape, as estimated by McKinsey, suggests a total addressable market of $1.5 trillion to $2.0 trillion globally.

Palo Alto Networks focuses on three main market segments: Network Security, Cloud Security, and Security Operations. Within the Network Security segment, the overall total addressable market grew at a 9% CAGR from 2021 to 2024. More specifically, the software firewalls segment within Network Security saw a 13% CAGR, while the Secure Access Service Edge (SASE) segment experienced a notable 36% CAGR during the same period. The total network security market is projected to grow at a CAGR of 2.8% from 2024 to 2029, with firewall growth specifically forecasted at a 5.0% CAGR.

Palo Alto Networks serves customers in over 150 countries, with primary markets segmented across the Americas, EMEA (Europe, the Middle East, and Africa), and JAPAC (Japan and Asia Pacific).

Expected Drivers of Future Revenue Growth for Palo Alto Networks (PANW)

• Platformization Strategy: Palo Alto Networks' strategy to consolidate security spending through its comprehensive cybersecurity platform is a significant driver. This approach leads to increased adoption of multiple products across its three main platforms (network security, cloud security, and security operations), resulting in higher average annual recurring revenue (ARR) per platformized customer. The company reported over 90 new platformizations in Q4 2024, bringing the total to over 1,000 among its largest customers. CEO Nikesh Arora noted in Q1 2025 that platformization is a "game changer that will solve security and enable better AI outcomes" and is expected to be a multi-year trend.
• Growth in Next-Generation Security (NGS) Offerings: The expansion and adoption of Next-Generation Security (NGS) products and services, including software firewalls, Secure Access Service Edge (SASE), and AI-powered solutions, are key revenue drivers. NGS ARR grew 43% year-over-year in Q4 2024 to $4.22 billion, and 40% year-over-year to $4.5 billion in Q1 2025. Specific growth drivers highlighted in Q4 2025 included software firewalls, SASE, and XIAM, with AI ARR growing over two and a half times year over year. The company forecasts NGS ARR to be between $4.70 billion and $4.75 billion for Q2 2025, representing a 35% to 36% increase year-over-year.
• Expansion of Cloud Security (Prisma Cloud) and AI-Driven Solutions: Palo Alto Networks continues to enhance its cloud security capabilities with new modules for Prisma Cloud, maintaining its leadership in this competitive sector. The rapid adoption of AI and public cloud services presents substantial opportunities for the company to secure new and existing revenue streams. AI ARR specifically reached approximately $545 million in Q4 2025, indicating strong growth in AI-driven security solutions.
• International Market Expansion and Advanced Subscription Services: The company has demonstrated double-digit revenue growth across all its geographic theaters, including the Americas, EMEA, and JAPAC. This international expansion, coupled with the continuous delivery of new innovations and the adoption of advanced subscription services and add-on modules within SASE (such as Autonomous Digital Experience Management or ADEM, and Cloud Access Security Broker or CASB), further fuels revenue growth by expanding existing platformized deployments.

Share Repurchases

• Palo Alto Networks' board of directors authorized an additional $500 million for share repurchases in August 2024, increasing the total authorization to $1 billion, set to expire on December 31, 2025.
• Prior authorizations included increases in December 2020, August 2021, August 2022, November 2023, and August 2024, accumulating to a total authorization of $4.1 billion, with the expiration date extended to December 31, 2025.
• Annual share repurchases were approximately $1.178 billion in fiscal year 2021, $892.3 million in fiscal year 2022, $272.7 million in fiscal year 2023, and $566.7 million in fiscal year 2024.

Share Issuance

• In November 2024, a two-for-one forward stock split was approved, effective December 2024, which also proportionately increased the number of authorized common shares from 1.0 billion to 2.0 billion.
• At the December 2024 Annual Meeting, shareholders approved an increase of 3 million shares to the 2021 Equity Incentive Plan.
• Shares outstanding have shown an increasing trend, from approximately 0.685 billion in 2023 to 0.708 billion in 2024, and 0.709 billion in 2025.

Outbound Investments

• Palo Alto Networks completed the acquisition of CyberArk for approximately $25 billion in July 2025, marking a significant entry into identity security.
• The company acquired Protect AI for an estimated $500 million to $700 million, with the acquisition completed in July 2025, to secure AI applications and models.
• Other strategic acquisitions between 2021 and 2024 include Bridgecrew (February 2021, $156 million), Cider Security (November 2022, $300 million), Dig Security (October 2023, $400 million), Talon Cyber Security (November 2023, $625 million or $600 million), and IBM's QRadar SaaS Assets (September 2024, approximately $1.14 billion).

Capital Expenditures

• Capital expenditures for Palo Alto Networks were $116 million in fiscal year 2021, $192.8 million in fiscal year 2022, $146.3 million in fiscal year 2023, $156.8 million in fiscal year 2024, and peaked at $246.2 million in fiscal year 2025.
• Capital expenditures are generally focused on investments in physical assets like property, industrial buildings, or equipment.