Analysis of Geographic Areas
Palo Alto Networks Inc. operates in 2 regions: United States and Other countries.
Area Asset Turnover
Palo Alto Networks Inc., asset turnover by geographic area
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| United States | 9.36 | 13.84 | 11.70 | 11.05 | 7.98 | 5.96 |
| Other countries | 9.42 | 10.86 | 9.39 | 11.35 | 12.63 | 12.55 |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
The analysis of area asset turnover reveals a significant shift in operational efficiency between the United States and international markets from 2021 to 2026, characterized by an initial divergence followed by a final convergence.
- United States Asset Turnover
- A strong upward trend was observed from 2021 through 2025, with the ratio increasing from 5.96 to a peak of 13.84. This represents a substantial improvement in the efficiency of domestic asset utilization to generate revenue. However, this growth trend reversed sharply in 2026, with the ratio declining to 9.36.
- Other Countries Asset Turnover
- International operations began the period with a high level of asset efficiency, recording a ratio of 12.55 in 2021. Unlike the domestic trend, international asset turnover experienced a general decline over the period, reaching a low of 9.39 in 2024. Despite a temporary increase to 10.86 in 2025, the ratio returned to 9.42 by 2026.
- Comparative Geographic Performance
- Between 2021 and 2023, the efficiency gap between the two regions closed rapidly as the United States improved and other countries declined. By 2024 and 2025, the United States surpassed international markets in asset turnover. By the end of the observed period in 2026, the ratios converged, with both the United States (9.36) and other countries (9.42) exhibiting nearly identical asset utilization efficiency.
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Area Asset Turnover: United States
Palo Alto Networks Inc.; United States; area asset turnover calculation
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 7,108) | 5,786) | 5,134) | 4,424) | 3,560) | 2,748) |
| Long-lived assets | 759) | 418) | 439) | 400) | 446) | 461) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 9.36 | 13.84 | 11.70 | 11.05 | 7.98 | 5.96 |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
1 2026 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 7,108 ÷ 759 = 9.36
The financial performance in the United States reflects a period of aggressive revenue expansion coupled with high asset efficiency, followed by a significant increase in capital investment in the final period.
- Revenue Growth Trends
- A consistent and strong upward trajectory in revenue is observed from July 31, 2021, to July 31, 2026. Revenue increased from 2,748 million US$ to 7,108 million US$, representing a substantial expansion of the market presence within the region over the six-year period.
- Long-Lived Asset Management
- Long-lived assets remained relatively stable and even experienced a slight decline between 2021 and 2025, moving from 461 million US$ to 418 million US$. However, a sharp increase is noted by July 31, 2026, where assets rose to 759 million US$, suggesting a strategic pivot toward increased capital expenditure or the acquisition of significant long-term resources.
- Area Asset Turnover Analysis
- The area asset turnover ratio demonstrates a period of rapidly increasing efficiency, climbing from 5.96 in 2021 to a peak of 13.84 in 2025. This indicates that the entity was able to generate significantly more revenue per unit of long-lived asset during this interval. In 2026, the ratio declined to 9.36; this contraction is directly attributable to the surge in long-lived assets outpacing the growth in revenue for that specific year.
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Area Asset Turnover: Other countries
Palo Alto Networks Inc.; Other countries; area asset turnover calculation
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | 4,372) | 3,435) | 2,894) | 2,469) | 1,941) | 1,508) |
| Long-lived assets | 464) | 316) | 308) | 217) | 154) | 120) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 9.42 | 10.86 | 9.39 | 11.35 | 12.63 | 12.55 |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
1 2026 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 4,372 ÷ 464 = 9.42
Revenue generated from other countries demonstrates a consistent and significant upward trajectory, growing from 1,508 million USD in 2021 to 4,372 million USD by 2026. Parallel to this revenue expansion, long-lived assets in these regions increased from 120 million USD to 464 million USD, indicating a sustained commitment to capital investment to support international operations.
- Revenue Trends
- A steady year-over-year increase is observed, with the most substantial absolute growth occurring between 2025 and 2026, where revenue rose by nearly 937 million USD.
- Long-lived Asset Expansion
- Investment in long-lived assets grew substantially, particularly between 2023 and 2024 and again in 2026. The asset base nearly quadrupled over the analyzed period, reflecting an aggressive scaling of infrastructure in these geographic areas.
- Area Asset Turnover Analysis
- The asset turnover ratio, which measures the efficiency of assets in generating revenue, peaked at 12.63 in 2022 before entering a general decline. Despite a temporary recovery to 10.86 in 2025, the ratio fell to 9.42 by 2026. This downward trend suggests that the growth in long-lived assets has outpaced the growth in revenue relative to the efficiency levels seen in the early part of the period.
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Revenue
Palo Alto Networks Inc., revenue by geographic area
US$ in millions
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| United States | 7,108) | 5,786) | 5,134) | 4,424) | 3,560) | 2,748) |
| Other countries | 4,372) | 3,435) | 2,894) | 2,469) | 1,941) | 1,508) |
| Total | 11,480) | 9,222) | 8,028) | 6,893) | 5,502) | 4,256) |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
Total revenue exhibits a consistent and strong upward trajectory over the analyzed six-year period, increasing from 4,256 million US dollars in 2021 to 11,480 million US dollars by 2026. This expansion is driven by simultaneous growth in both domestic and international markets.
- United States Revenue Performance
- The domestic market remains the primary revenue driver, demonstrating steady growth from 2,748 million US dollars in 2021 to 7,108 million US dollars in 2026. The steady year-over-year increases indicate sustained demand and market penetration within the United States.
- International Market Expansion
- Revenue from other countries grew from 1,508 million US dollars in 2021 to 4,372 million US dollars in 2026. The international segment showed a more aggressive growth rate relative to its starting base, nearly tripling its revenue over the period.
- Geographic Revenue Mix and Diversification
- A gradual shift in the revenue composition is observed. In 2021, the United States accounted for approximately 64.6% of total revenue. By 2026, this share decreased to approximately 61.9%, while the contribution from other countries rose from 35.4% to 38.1%. This trend indicates a strategic diversification of the revenue base, reducing reliance on a single geographic market.
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Long-lived assets
Palo Alto Networks Inc., long-lived assets by geographic area
US$ in millions
| Jul 31, 2026 | Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| United States | 759) | 418) | 439) | 400) | 446) | 461) |
| Other countries | 464) | 316) | 308) | 217) | 154) | 120) |
| Total | 1,223) | 734) | 747) | 618) | 600) | 581) |
Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).
Total long-lived assets exhibit a general upward trajectory over the observed six-year period, culminating in a substantial increase by July 31, 2026. While growth was gradual between 2021 and 2023, a sharp acceleration is evident in the final fiscal year.
- Total Asset Growth
- Aggregate long-lived assets rose from 581 million USD in 2021 to 1,223 million USD in 2026. This represents a more than two-fold increase in the total asset base, with the most significant expansion occurring between 2025 and 2026.
- International Asset Expansion
- Assets located in other countries demonstrated consistent year-over-year growth, increasing from 120 million USD in 2021 to 464 million USD in 2026. This steady climb indicates a sustained strategic expansion of long-term infrastructure outside the United States.
- United States Asset Dynamics
- Domestic long-lived assets remained relatively stable with minor fluctuations between 2021 and 2025, maintaining a range between 400 million USD and 461 million USD. A significant surge occurred in 2026, with assets increasing to 759 million USD, indicating a major capital allocation within the U.S. market during the final period.
- Geographic Distribution Shift
- A shift in the geographic concentration of assets is observed. In 2021, international assets represented approximately 20.6% of the total long-lived assets. By 2026, this proportion increased to approximately 37.9%, reflecting a higher degree of global asset diversification.
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