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 revenue for fiscal 2025 was $9.2 billion, a 14.9% year-over-year growth from the previous fiscal year's $8.0 billion. This growth was driven by increased adoption of its cybersecurity platforms and services, which help secure enterprise users, networks, clouds, and endpoints.
The company's network security platform, designed to deliver complete zero trust solutions, includes Secure Access Service Edge (SASE), Next-Generation Firewalls (NGFWs), and Cloud-Delivered Security Services (CDSS). Additionally, the Prisma AIRS platform provides comprehensive AI security, while Strata Cloud Manager (SCM) offers network security management solutions.
Palo Alto Networks' subscription and support revenue for fiscal 2025 grew to $7.4 billion, representing 80.5% of total revenue and a year-over-year growth of 15.5%. This revenue is derived from subscriptions providing end-customers with near real-time access to the latest intrusion prevention, web security, modern malware prevention, data loss prevention, CASB, and AI security capabilities across networks, endpoints, and the cloud.
The company 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, it completed the acquisition of certain IBM QRadar assets and Protect AI, with an expected acquisition of CyberArk in the second half of fiscal 2026.
Palo Alto Networks monitors key financial metrics such as Next-Generation Security Annualized Recurring Revenue (NGS ARR), remaining performance obligations, total revenue, gross margin, operating income, operating margin, cash flow provided by operating activities, and free cash flow. For fiscal 2025, the NGS ARR was $5.6 billion, and cash flow provided by operating activities was $3.7 billion.
The company's end-customers span over 180 countries and include almost all of the Fortune 100 companies and a majority of the Global 2000 companies. It maintains a field sales force working closely with channel partners in developing sales opportunities and primarily uses a two-tiered, indirect fulfillment model.
Palo Alto Networks acknowledges that its overall performance is impacted by worldwide economic and geopolitical conditions, changes in legislation or regulations, and actions by regulators. The company actively monitors and evaluates the impact of inflationary pressures, trade tensions, and geopolitical uncertainties on its business and operations.
Today the company's shares have moved -0.26% to a price of $190.52. For the full picture, make sure to review Palo Alto Networks Inc's 10-K report.
