Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Palo Alto Networks Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Jul 31, 2026	Apr 30, 2026	Jan 31, 2026	Oct 31, 2025	Jul 31, 2025	Apr 30, 2025	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020
Product	738)	594)	514)	434)	574)	453)	422)	354)	480)	391)	391)	341)	507)	388)	353)	330)	408)	352)	308)	296)	339)	289)	255)	237)
Subscription and support	2,672)	2,408)	2,080)	2,040)	1,962)	1,836)	1,836)	1,785)	1,709)	1,594)	1,584)	1,537)	1,446)	1,333)	1,302)	1,233)	1,142)	1,035)	1,009)	952)	880)	785)	762)	709)
Revenue	3,410)	3,002)	2,594)	2,474)	2,536)	2,289)	2,257)	2,139)	2,190)	1,985)	1,975)	1,878)	1,953)	1,721)	1,655)	1,563)	1,550)	1,387)	1,317)	1,247)	1,219)	1,074)	1,017)	946)
Product	(197)	(167)	(115)	(89)	(136)	(101)	(101)	(75)	(105)	(78)	(88)	(77)	(104)	(93)	(101)	(120)	(143)	(126)	(98)	(89)	(89)	(82)	(76)	(62)
Subscription and support	(909)	(807)	(570)	(549)	(543)	(519)	(498)	(479)	(469)	(436)	(411)	(395)	(403)	(381)	(366)	(342)	(350)	(315)	(308)	(292)	(270)	(249)	(232)	(216)
Cost of revenue	(1,106)	(974)	(685)	(638)	(679)	(619)	(599)	(554)	(574)	(514)	(499)	(473)	(507)	(475)	(466)	(462)	(492)	(441)	(405)	(381)	(359)	(331)	(308)	(278)
Gross profit	2,304)	2,028)	1,909)	1,836)	1,857)	1,670)	1,658)	1,585)	1,616)	1,471)	1,476)	1,405)	1,447)	1,246)	1,189)	1,102)	1,058)	946)	912)	867)	860)	743)	709)	668)
Research and development	(779)	(734)	(511)	(528)	(504)	(495)	(506)	(480)	(495)	(457)	(448)	(410)	(414)	(414)	(404)	(372)	(364)	(355)	(359)	(340)	(325)	(311)	(267)	(237)
Sales and marketing	(1,127)	(1,161)	(823)	(820)	(829)	(793)	(758)	(720)	(742)	(719)	(673)	(661)	(664)	(640)	(626)	(615)	(571)	(544)	(529)	(506)	(490)	(448)	(427)	(389)
General and administrative	(226)	(316)	(178)	(179)	(27)	(164)	(154)	(98)	(140)	(119)	(302)	(120)	(115)	(114)	(119)	(100)	(108)	(95)	(98)	(104)	(106)	(95)	(104)	(87)
Operating expenses	(2,132)	(2,211)	(1,512)	(1,527)	(1,360)	(1,451)	(1,418)	(1,298)	(1,377)	(1,295)	(1,422)	(1,190)	(1,193)	(1,167)	(1,149)	(1,086)	(1,043)	(994)	(986)	(950)	(921)	(854)	(798)	(713)
Operating income (loss)	172)	(183)	397)	309)	497)	219)	240)	287)	238)	177)	54)	215)	254)	79)	40)	15)	15)	(48)	(74)	(83)	(60)	(110)	(89)	(45)
Interest expense	—)	—)	—)	—)	—)	(1)	(1)	(1)	—)	(2)	(3)	(3)	(6)	(8)	(7)	(7)	(7)	(7)	(7)	(7)	(41)	(41)	(41)	(40)
Other income (expense), net	(441)	27)	152)	103)	95)	92)	85)	83)	81)	77)	85)	70)	69)	60)	51)	26)	9)	2)	—)	(2)	(1)	1)	(1)	2)
Income (loss) before income taxes	(269)	(156)	549)	412)	592)	311)	325)	369)	319)	251)	136)	283)	316)	131)	84)	34)	17)	(53)	(81)	(91)	(102)	(150)	(130)	(82)
(Provision for) benefit from income taxes	(13)	(21)	(117)	(78)	(338)	(48)	(58)	(18)	39)	28)	1,611)	(88)	(89)	(23)	—)	(14)	(14)	(21)	(13)	(12)	(17)	5)	(12)	(10)
Net income (loss)	(282)	(177)	432)	334)	254)	262)	267)	351)	358)	279)	1,747)	194)	228)	108)	84)	20)	3)	(73)	(94)	(104)	(119)	(145)	(142)	(92)

A consistent upward trajectory in total revenue is observed over the analyzed period, with quarterly figures rising from 946 million USD in October 2020 to 3,410 million USD by July 2026. This growth is primarily driven by a significant expansion in subscription and support revenue, which has evolved from 709 million USD to 2,672 million USD, indicating a successful strategic shift toward a recurring revenue model. While product revenue also increased from 237 million USD to 738 million USD, its contribution to the total revenue mix has diminished relative to subscriptions.

Gross Profitability and Margin Trends: Gross profit demonstrated steady growth, increasing from 668 million USD in October 2020 to 2,304 million USD in July 2026. The cost of revenue grew proportionally with sales, but the overall gross profit margin remained robust, providing the necessary capital to fund scaling operations and research initiatives.
Operating Expense Analysis: Operating expenses exhibited a general increase to support business expansion. Research and development spending rose from 237 million USD to 779 million USD, reflecting a sustained commitment to product innovation. Sales and marketing expenses saw a substantial increase, climbing from 389 million USD to 1,127 million USD over the period. General and administrative expenses remained relatively stable for several years before experiencing increased volatility in later quarters, including a notable spike to 302 million USD in January 2024 and a significant increase to 316 million USD by January 2026.
Operating Income Transition: A pivotal transition in operational profitability occurred around July 2022, when the company moved from consistent operating losses to positive operating income. Operating income peaked at 497 million USD in July 2025. However, a sharp decline to an operating loss of 183 million USD was recorded in January 2026, followed by a recovery to 172 million USD in July 2026, suggesting period-specific volatility in operational costs or revenue recognition.
Net Income and Non-Operating Impacts: Net income patterns were characterized by significant volatility, largely due to non-operating items and tax provisions. A substantial anomaly is observed in January 2024, where net income surged to 1,747 million USD, driven by a one-time tax benefit of 1,611 million USD. Other income generally trended upward, peaking at 152 million USD in January 2025, before a sharp reversal to a net expense of 441 million USD in July 2026, which heavily impacted the bottom line during the final analyzed quarter.
Debt and Interest Obligations: Interest expenses decreased markedly over the timeline, falling from approximately 40 million USD per quarter in 2020 to negligible amounts by 2024 and 2025, indicating a reduction in debt load or a restructuring of liabilities.

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Palo Alto Networks Inc. (NASDAQ:PANW)

Income StatementQuarterly Data

Income Statement
Quarterly Data