Palo Alto Networks Inc. recently filed its Annual Report on Form 10-K for fiscal 2024, showcasing its financial performance and strategic initiatives. The company's mission is to be the cybersecurity partner of choice for enterprises, organizations, service providers, and government entities. It aims to protect digital assets through comprehensive cybersecurity solutions backed by artificial intelligence and automation.
In fiscal 2025, the company reported total revenue of $9.2 billion, marking a 14.9% year-over-year growth from the $8.0 billion in fiscal 2024. This growth was attributed to increased adoption of its portfolio, consisting of products, subscriptions, and support. The company's end-customers span over 180 countries, including a broad range of industries such as education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. Notably, it serves almost all of the Fortune 100 companies and a majority of the Global 2000 companies.
Product revenue accounted for $1.8 billion or 19.5% of total revenue for fiscal 2025, with a year-over-year growth of 12.4%. This revenue is derived from sales of hardware products and software licenses, including ML-Powered Next-Generation Firewall, SD-WAN, VM-Series, and Panorama. On the other hand, subscription and support revenue grew to $7.4 billion or 80.5% of total revenue for fiscal 2025, representing a 15.5% year-over-year increase. These subscriptions provide customers with access to the latest intrusion prevention, web security, modern malware prevention, data loss prevention, CASB, and AI security capabilities.
Palo Alto Networks Inc. continues to invest in innovation, introducing new offerings such as Prisma Access Browser, new capabilities in its OT Security solution, Cortex Cloud, Prisma AIRS, and Cortex XSIAM 3.0. Additionally, the company completed the acquisition of certain IBM QRadar assets in August 2024 and Protect AI in July 2025, with an impending acquisition of CyberArk expected to close during the second half of fiscal 2026.
The company closely monitors key financial metrics such as Next-Generation Security Annualized Recurring Revenue (NGS ARR), remaining performance obligations, total revenue, gross margin, operating income, and cash flow provided by operating activities. For instance, the NGS ARR increased to $5.6 billion in fiscal 2025 from $4.2 billion in fiscal 2024, reflecting the strength and trajectory of the business.
Palo Alto Networks Inc. acknowledges that its growth and success depend on factors such as extending its technology leadership, expanding its end-customer base, and addressing product vulnerabilities. The company also keeps a close watch on macroeconomic developments and other factors that could impact its business, including worldwide economic and geopolitical conditions, changes in legislation or regulations, and economic conditions such as inflation and foreign exchange rate fluctuations.
Following these announcements, the company's shares moved -0.26%, and are now trading at a price of $190.52. Check out the company's full 10-K submission here.
