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Palo Alto Networks, Inc. is a cybersecurity company that empowers enterprises, organizations, service providers, and government entities to secure their users, networks, clouds, and endpoints through comprehensive cybersecurity solutions enabled by artificial intelligence and automation . The company offers a range of products, including appliances, software licenses, and subscription services, to provide real-time access to security capabilities across various environments . Palo Alto Networks also provides professional services such as incident response and risk management, and operates a two-tiered, indirect fulfillment model for sales through distributors and resellers .
- Subscription and Support Services - Provide real-time access to security capabilities across networks, endpoints, and the cloud, often purchased alongside firewall appliances.
- Appliances - Include the ML-Powered Next-Generation Firewall, which secures networks with advanced machine learning capabilities.
- Software Licenses - Cover Panorama, SD-WAN, and the VM-Series, offering comprehensive management and security for various network environments.
- CN-Series Container Firewalls - Secure containerized computing environments, ensuring protection across cloud-native applications.
- Professional Services - Offer incident response and risk management to help organizations manage and mitigate cybersecurity threats.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Nikesh Arora ExecutiveBoard | CEO & Chairman of the Board | Board Member at Compagnie Financière Richemont S.A. | Joined PANW in June 2018. Former President of SoftBank Group and Chief Business Officer at Google. Holds degrees in Electrical Engineering, Business Administration, and Finance. | June 2018 |
Nir Zuk ExecutiveBoard | Chief Technology Officer (CTO) | None | Co-founder of PANW in 2005. Former CTO at NetScreen Technologies and OneSecure. Studied Mathematics at Tel Aviv University. | March 2005 |
Bruce Byrd Executive | EVP, General Counsel & Secretary | None | EVP, General Counsel, and Secretary at PANW. No additional biographical details provided in the documents. | N/A |
Dipak Golechha Executive | Chief Financial Officer (CFO) | None | Joined PANW in December 2020 as SVP, Finance, and became CFO in March 2021. Former CFO at Chobani and NBTY. Holds degrees in Economics from Cambridge University. | December 2020 |
Lee Klarich Executive | Chief Product Officer (CPO) | None | Joined PANW in May 2006. Oversees product innovation and development. Holds a B.S. in Engineering from Cornell University. | May 2006 |
William "BJ" Jenkins Executive | President | None | Joined PANW in August 2021. Former CEO of Barracuda Networks and senior leader at EMC Corporation. Holds an engineering degree from the University of Illinois and an MBA from Harvard. | August 2021 |
Helle Thorning-Schmidt Board | Director | Board Member at Vestas Wind Systems, Neurons Inc., Edelman; Co-Chair of Meta’s Oversight Board; Advisory Board Member at Vista Equity Partners | Joined PANW Board in February 2025. Former Prime Minister of Denmark and CEO of Save the Children International. Holds degrees in Political Science and European Studies. | February 2025 |
John M. Donovan Board | Lead Independent Director | Board Member at Lockheed Martin; Chair of The President’s National Security Telecommunications Advisory Committee | Joined PANW Board in September 2012. Former CEO of AT&T Communications. Holds degrees in Electrical Engineering and an MBA. | September 2012 |
Lorraine Twohill Board | Director | Chief Marketing Officer at Google LLC | Joined PANW Board in April 2019. Former Head of Marketing for Google EMEA. Holds degrees in International Marketing and Languages from Dublin City University. | April 2019 |
Mary Pat McCarthy Board | Director | Board Member at Micron Technology, Inc. | Joined PANW Board in October 2016. Former Vice Chair at KPMG LLP. Recognized as an audit committee financial expert. | October 2016 |
Ralph Hamers Board | Director | Advisor to Arta Finance, GRAB Holding; Secretary General of Institut International d’Études Bancaires | Joined PANW Board in February 2025. Former CEO of UBS Group and ING Group. Holds a Master’s in Business Econometrics & Operations Research from Tilburg University. | February 2025 |
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With your contract lengths remaining roughly consistent at three years, what implications do you see on free cash flow generation in both the short term and long term, and how might this affect your free cash flow margins?
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Given the shift towards RPO and ARR guidance and your expectation of a mix more towards annualized billings and away from financing, how do you anticipate this will impact your financial metrics, especially regarding operating margins and cash flow?
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Considering the potential uncertainties with the upcoming U.S. elections and their impact on federal budgets, how are you adjusting your expectations and strategies for your U.S. federal business in the coming quarters?
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Despite the acceleration in XSIAM bookings and the growth of your Cortex business to over $900 million in ARR, what challenges do you foresee in maintaining this growth trajectory, and how do you plan to address competition in the security operations platform market?
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As you implement AI to drive operating efficiencies within your own operations, what specific obstacles have you encountered, and how do you plan to overcome them to fully realize the potential cost savings and productivity gains?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
A large company that incorporates security features in its products and has the technical and financial resources to bring competitive solutions to the market. | |
A large company that incorporates security features in its products and has the technical and financial resources to bring competitive solutions to the market. | |
A large company that incorporates security features in its products and has the technical and financial resources to bring competitive solutions to the market. | |
An independent security vendor that offers a mix of security products. | |
An independent security vendor that offers a mix of security products. | |
An independent security vendor that offers a mix of security products. | |
An independent security vendor that offers a mix of security products. | |
Wiz, Inc. | An independent security vendor that offers a mix of security products. |
Start Date: Ernst & Young LLP has served as the auditor of Palo Alto Networks, Inc. since 2009. **[0001327567-24-000029_panw-20240731.htm:100]**
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
IBM's QRadar SaaS Assets | 2024 | Palo Alto Networks acquired IBM’s QRadar SaaS assets for a total of $1.1 billion ($500M cash, $648.9M contingent consideration, plus adjustments) to accelerate its Cortex XSIAM growth, with the deal completed on August 31, 2024 and recognized $700.7 million in goodwill. |
Dig Security Solutions Ltd. (Dig) | 2023 | Announced on October 29, 2023, the deal valued at approximately $295.0 million ($232M cash and $63M replacement awards) is intended to boost the Prisma Cloud platform with enhanced data security posture management, with an expected closing in Q2 of fiscal 2024. |
Talon Cyber Security Ltd. (Talon) | 2023 | Definitively agreed upon on November 6, 2023, for an estimated $550.0 million (including ~$434.9M cash and ~$115.1M in replacement awards), this acquisition supports Palo Alto Networks’ Prisma SASE approach by enabling secure access for diverse devices, with closing anticipated in Q2 of fiscal 2024. |
Unnamed Company | 2023 | Completed in April 2023, this acquisition involved a cash consideration of $18.9 million and recorded $14.5 million in goodwill (which is not tax deductible), and was accounted for as a business combination. |
Cider Security Ltd. | 2022 | With an agreement dated November 17, 2022, the transaction valued at approximately $250.0 million ($194.6M cash and $55.4M in replacement equity awards) was set to support the full application security lifecycle in the Prisma Cloud suite, with closing expected in Q2 fiscal 2023 and additional share registration details provided. |
Bridgecrew | 2021 | Completed on March 2, 2021, the acquisition for $156.9 million (including $155.9M cash and $1.0M in replacement awards) was strategically aimed at enhancing Prisma Cloud with shift-left security through integration of Bridgecrew’s technology (including its open-source Checkov tool) with detailed purchase price allocations including $129.6 million in goodwill. |
Recent developments and announcements about PANW.
Earnings
New Earnings (Q2 2025)
·Feb 14, 2025, 12:19 AMView full earnings summary →PANW Q2’25: Operating margins climbed as AI-driven platformization drove FCF margins above 37%. Despite net new ARR declines in the last two quarters (excluding Q1’s $74M from QRadar), software-based network security soared 21%. Transition to SaaS remains key.
8-K Filings
8-K Filing
·Feb 19, 2025, 9:34 PMFinancial ExhibitsLeadership ChangesView full 8-K filing →Palo Alto Networks announced two independent director appointments—Helle Thorning-Schmidt and Ralph Hamers—expanding the board from 9 to 11 members. Each new director will receive restricted stock units valued at approximately $1M, vesting over three years.
Press Releases
Press Release
·Feb 12, 2025, 1:49 AMView full press release →Selected to secure Great Britain's Emergency Services Network, Palo Alto Networks will deliver 24/7 AI-powered platform protection and incident response. The multi-year collaboration bolsters security across network, cloud, and SOC environments for emergency services.