Palo Alto Networks, Inc.

Subscription and support revenue was 80.5% of total in FY2025, and remaining performance obligations reached $15.8 billion at fiscal year-end 2025, representing roughly 1.7 times annual revenue. Platform customers exhibit near-zero annual churn, providing multi-year forward revenue visibility that has been sustained across FY2022-FY2025.

Following the February 2026 CyberArk acquisition, the company operates across four platforms: Strata (network security), Prisma (cloud security), Cortex (security operations), and CyberArk (identity security). All revenue remains tied to the enterprise cybersecurity end market, limiting true diversification across unrelated end-market cycles.

The Americas generated 67.3% of FY2025 revenue, with EMEA at 20.8% and Asia Pacific at 11.9%. Geographic spread is meaningful internationally, with EMEA growing in FY2025, but the Americas' two-thirds dominance limits balance across global regions.

Non-GAAP operating margins reached approximately 28% in FY2025, and the free cash flow margin held at 36-38% across FY2022-FY2025, reflecting the subscription model's structural cost advantage as incremental ARR flows through at near-zero marginal cost. Operating leverage has been demonstrated across multiple fiscal years including the inflationary FY2022-FY2023 period.

Revenue is 80.5% contractual subscription and support (FY2025), covering mission-critical security infrastructure that enterprises cannot easily defer or replace mid-contract. The next-generation security ARR base of $5.6 billion at FY2025 year-end reflects customers committed to platform-level spending, not point-product purchases.