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10-K annual report · filed Sep 10, 2026

Palo Alto Networks (PANW) FY2026 10-K Annual Report

PANW overviewOriginal on SEC EDGAR
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Palo Alto Networks (PANW) filed its fiscal 2026 10-K annual report with the SEC on Sep 10, 2026. It reported revenue of $11.5B (+24.5% year over year) and net income of $307M.

  • Top risk flagged: Regulatory/legal risk: $114M damages, plus interest, in Centripetal Networks patent infringement case on appeal

FY2026 key financial metrics · XBRL

Revenue
$11.5B
+24.5% YoY
Net income
$307M
−72.9% YoY
Operating margin
6.1%
−7.4 pp YoY
Gross margin
70.4%
−3.1 pp YoY
EPS (diluted)
$0.40
−75.0% YoY
ROE
1.1%
−13.4 pp YoY
Operating cash flow
$4.6B
+22.5% YoY

Source: XBRL data from the Palo Alto Networks (PANW) FY2026 10-K on SEC EDGAR. USD.

Palo Alto Networks FY2026 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business: AI-driven integrated cybersecurity platforms securing networks, clouds, endpoints, AI apps, and identities
  • New offerings: Prisma AIRS 3.0 AI security platform; acquisition of CyberArk for identity security; AI Gateway and Agent Security for AI agent protection
  • Strategic shift: Increased focus on AI and agentic security with expanded platforms for AI lifecycle protection and observability (Chronosphere acquisition)
  • Quantitative metric: Workforce at 21,921 employees as of July 31, 2026; 8,700+ channel partners globally
  • Noteworthy fact: Six acquisitions completed or announced in fiscal 2026 to enhance AI security, observability, endpoint posture, and identity capabilities

Management Discussion & Analysis

  • Revenue $11.48B, up 24% YoY from $9.22B; product revenue $2.28B (+27%), subscription/support $9.2B (+24%)
  • Operating margin 6.1% vs 13.5% prior year; gross margin 70.4% vs 73.4% FY25; product margin 75.1% vs 77.1%, subscription margin 69.2% vs 72.5%
  • Best segment: Subscription and support revenue $9.2B (80.1% total rev); worst: General & administrative expense increased 35%, negatively impacting operating income
  • Operating cash flow $4.55B (+$837M YoY); free cash flow $4.11B (+$644M); share repurchases $X with $1B remaining authorization; capex increased with acquisitions
  • Management cautious on supply chain, inflation, geopolitical tensions (Israel, China-Taiwan) risks; plans continued investment in R&D and acquisitions to drive growth

Risk Factors

  • Regulatory/legal risk: $114M damages, plus interest, in Centripetal Networks patent infringement case on appeal
  • Geopolitical risk: Exposure to Russia-Ukraine war sanctions and related export controls impacting sales and compliance
  • Operational/supply chain risk: Dependency on Flex EMS and limited memory-related components amid global shortages, increasing production costs
  • Competitive risk: Competition from cloud providers and AI firms offering native security features bundled with their infrastructure
  • Financial risk: $1.25B 0% Convertible Senior Notes due 2030 requiring uncertain future cash payments, refinancing, or equity dilution

Generated from the filing text; verify against the original. How to read a 10-K

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