Palo Alto Networks
PANWQ4 2025(PANW Q1 FY2026)Estimated7.5% AI
AI Revenue %
7.5%
AI Fair Value
$5.9B
AI Revenue (Q)
$160.4M
Total Revenue (Q)
$2.1B
Source: SEC EDGAR 10-Q Filing
Browse 10-Q filings on SEC.govAnalysis
Q1 FY2026 (3 months ended October 31, 2025) revenue was $2,474M (Product $434M, Subscription $1,432M, Support $608M). Revenue grew 15.7% YoY. Subscription revenue (derived: $2,040M - $608M = $1,432M) grew 20.2% YoY ($1,432M vs $1,191.8M). All convertible notes fully settled (no longer on balance sheet). PANW describes itself as delivering 'comprehensive cybersecurity backed by artificial intelligence and automation.' Prisma AIRS, Cortex Cloud, XSIAM all in full market availability. Proposed CyberArk acquisition pending. Contingent consideration liability reduced further (QRadar) with $121M cash payment made. Increasing to 7.5% reflecting maturation of AI product portfolio. Math: $2,474M x 7.5% = ~$186M.
Analyzed by claude-opus-4-6
Quoted Figures
Total revenue $2,474M (Product $434M, Subscription and support $2,040M)
10-Q Q1 FY2026, Condensed Consolidated Statements of Operations
Payments of contingent consideration liability ($121M)
10-Q Q1 FY2026, Cash Flow Statement
AI Products Identified (Ring 1)
Cortex XSIAMCortex CloudPrisma AIRSAI Access SecurityAI Runtime SecurityStrata CopilotAIOps
AI-Enabled Items (Ring 2 — Not Counted)
These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.
ML-Powered Next-Generation Firewalls
Confidence Tier
EstimatedNo direct AI revenue disclosure — estimated from product mix