Palo Alto Networks, Inc. has released its results for the fourth quarter to July 31, 2025. The company declared a total revenue of $2.5 billion for the fourth quarter of 2025, up by 15.8% year-on-year. The bulk of the revenue increment was from subscription and support (73.1%). In quarter 4 of 2025, Palo Alto declared subscription and support revenue of $2 billion, representing a year-on-year growth of 14.8%. It was responsible for 77.4% of total revenue (2024: 78.1%).
Product revenue (sale of appliances and software licenses) gained 19.4% year on year to $573.9 million in quarter 4 of 2025. Product revenue produced 22.6% of total revenue in quarter 4, 2025 (Q4, 2024:21.9%).
Palo Alto posted a $1.9 billion gross profit in quarter 2025, compared to $1.6 billion in the corresponding period of the previous year. The operating income of $497.2 million translates to a 108.6% rise over what was declared in the fourth quarter of a year ago. The company is propelling sales through innovation and marketing. Spending on Research & Development (R & D) rose by 1.8% while sales and marketing expenses increased by 11.9%. Its general and administrative expenses fell by 80.5% year-on-year.
A provision for income taxes of $338 million, which was 57.1% of Profit Before Tax, resulted in a 29% year-on-year fall in Profit After Tax (PAT) in quarter 4, 2025. PAT margin lost 6.3% to close at 10% at the end of quarter 4, 2025.Â
Cash and cash equivalents increased by 47.8% to $2.3 billion (2024:$1.5 billion). It amounted to cash of $3.39 per share (Quarter 4, 2024: $2.37). Working capital is negative owing to deferred revenue of $6.3 billion (2024:$5.5 billion). This is because software licenses and subscription sales form a significant part of the business.
| Â | May-Jul 2025Â | May-Jul 2024Â | % Change |
| Revenue | $2,536,300,000 | $2,189,500,000 | 15.8% |
| Income Before Taxes | $591,800,000 | $319,000,000 | 85.5% |
| Net Income | $253,800,000 | $357,700,000 | -29.0% |
ABOUT PALO ALTO NETWORKS, INC.
Palo Alto Networks, Inc. is a cybersecurity company that has its headquarters in California (USA). It offers products that help protect networks, clouds, data and endpoints from cyberattacks. It serves organisations in both the private and public sectors.Â
