Palo Alto Networks Inc. has reported its latest 10-Q, showcasing a 16% year-over-year growth in total revenue for the first quarter of fiscal 2026, reaching $2.5 billion. The company's portfolio, consisting of product, subscriptions, and support, contributed to this growth. As of October 31, 2025, the company had end-customers in over 180 countries, representing a broad range of industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications.
Product revenue grew to $434 million, representing 17.5% of total revenue, with a year-over-year growth of 23%. This revenue is derived from sales of hardware products, primarily the ML-Powered Next-Generation Firewall, and software licenses, including SD-WAN, VM-Series, and Panorama. Subscription and support revenue reached $2.0 billion, accounting for 82.5% of total revenue, with a year-over-year growth of 14%. These subscriptions provide 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 the network, endpoints, and the cloud.
The company maintains a field sales force that works closely with channel partners, primarily using a two-tiered, indirect fulfillment model. Furthermore, Palo Alto Networks Inc. continues to invest in innovation, introducing software upgrades and launching new platforms to enhance its offerings. In July 2025, the company entered into a definitive agreement to acquire CyberArk Software Ltd., an identity security company, indicating a strategic move to expand its capabilities and portfolio.
Following these announcements, the company's shares moved -7.87%, and are now trading at a price of $184.175. For more information, read the company's full 10-Q submission here.
