Palo Alto Networks

What Palo Alto Networks does

Palo Alto Networks is a publicly traded cybersecurity platform company (NYSE: PANW) founded in 2005 and headquartered in Santa Clara, California. The company serves over 70,000 customers across 150+ countries, including 95% of the Fortune 100, with primary focus on large enterprises in financial services, healthcare, government, and regulated industries. It has evolved from a next-generation firewall vendor into an integrated AI-powered cybersecurity platform organized around three core platforms: Strata (network security), Cortex (security operations), and Idira (identity security), with Prisma AIRS addressing AI runtime security and Unit 42 providing managed threat intelligence and incident response.

The company's product portfolio is unified by its proprietary Precision AI technology and includes Cortex XSIAM (2,900 ML models), Cortex XDR/XSOAR/Xpanse (700+ partner integrations), Prisma Cloud, Prisma SASE, Strata NGFWs, and the Idira identity security platform. Core proprietary technologies include the patented App-ID application classification engine and User-ID identity integration. The platform delivers measurable operational outcomes including 90% reduction in MTTR, 120% net retention from platformized customers, and 60% YoY growth in Next-Generation Security ARR to $8.1 billion.

Palo Alto Networks operates a primarily subscription-based revenue model with platform consolidation (platformization) as the core go-to-market motion. Q3 FY26 revenue was $3.0 billion (+31% YoY) with FY26 guidance raised to approximately $11.4 billion. Distribution combines direct enterprise field sales with a global channel including the NextWave Partner Program, MSSP Blueprint for Frontier AI Defense, and strategic alliances with IBM/Red Hat, Deutsche Telekom, Wipro, Databricks, OpenAI, and Anthropic. The company has executed an aggressive M&A strategy, completing the $25 billion CyberArk acquisition and $3.35 billion Chronosphere acquisition in February 2026, plus Portkey and Koi, extending the platform into identity security, observability, AI gateway, and agentic endpoint security.

Name

Palo Alto Networks

Legal name

Palo Alto Networks, Inc.

Website

https://paloaltonetworks.com

Company type

Public

Founded year

2005

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Palo Alto Networks is a publicly traded cybersecurity platform company serving 70,000+ customers across 150+ countries, including 95% of the Fortune 100. It operates integrated Strata (network), Cortex (SecOps), and Idira (identity) platforms powered by proprietary Precision AI.

Ownership category

akta.pro rank

Product category

Cybersecurity Software Platforms

NAICS

Computer Systems Design and Related Services (5415), Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (518210)

SIC

Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Attack Detection & Response for Cloud/SaaS (SOC for Cloud) (HDADAGAJ)

akta.pro secondary industries

Cloud Security Logging, SIEM/SOAR & Threat Detection (HDABAHAL), Intrusion Prevention/Detection Systems (IPS/IDS) (HDADABAH), Cybersecurity Operations Outsourcing (SOC / SecOps) (BPAEAMAG), Security Operations Center (SOC) as a Service (BPAEADAB)

Keywords

• Network security platform
• Cloud security solutions
• Identity security platform
• AI-powered cybersecurity
• Security operations platform

Headquarters

HQ city

Santa Clara

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Next-Generation Security Subscriptions: Recurring subscription revenue from platform security offerings including Prisma AIRS, Cortex XSIAM, Prisma SASE, and identity security. Represents the majority of revenue growth with 60% YoY ARR growth to $8.1B. Platform consolidation strategy drives land-and-expand with 120% net retention.
2. Platformization and Recurring Revenue Model: Shift from appliance-sales to recurring platform adoption. CyberArk and Chronosphere acquisitions contributed $388 million in Q3 FY26 revenue. Remaining performance obligations of $18.4B (up 36% YoY) indicate strong future revenue visibility.
3. Hardware and Software Products: Traditional firewall hardware appliances and software products including PA-series firewalls, VM-series virtual firewalls, and PAN-OS software. Becoming less dominant relative to subscription revenue.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Palo Alto Networks is a global cybersecurity company that sells an integrated AI-powered platform spanning network security (Strata platform with next-generation firewalls), cloud security (Prisma), security operations (Cortex), and identity security (Idira). The company also delivers Unit 42 managed detection and response services and threat intelligence. Its offerings target enterprise, government, and regulated-industry customers seeking to consolidate multiple point security products onto a single platform.

Product overview

Palo Alto Networks offers a comprehensive platform-based cybersecurity portfolio organized into three core platforms: Strata Network Security (AI-powered network security with Next-Generation Firewalls, PAN-OS, Strata Cloud Manager, Prisma SASE, and Prisma Access), Cortex Security Operations (AI-driven SecOps including Cortex XSIAM, Cortex XDR, Cortex XSOAR, Cortex Xpanse, and Prisma Cloud), and Idira Identity Security (next-generation identity platform securing human, machine, and agentic identities). The portfolio also includes specialized products like Prisma AIRS for AI runtime security, Quantum-Safe Security for post-quantum cryptography, Prisma Browser for enterprise browser security, and Unit 42 managed threat intelligence and incident response services. The platformization strategy enables customers to consolidate point products under a unified security architecture.

Differentiator

Problem solved

Functional benefit

Brands

• Strata: Network security platform delivering AI-powered network security
• Cortex
• Prisma
• Idira
• Unit 42
• Prisma SASE
• Cortex XSIAM
• Cortex XDR
• Cortex XSOAR

Products and services

• Strata Network Security Platform AI-powered network security platform providing next-generation firewall, Zero Trust protection, and real-time threat prevention across enterprise environments. Targets large enterprises needing unified network security with AI-driven analytics.
• Cortex Security Operations Platform AI-driven security operations platform transforming the SOC with unified data, AI, and automation. Includes XSIAM, XDR, XSOAR, and Xpanse with 700+ partner integrations for enterprise security operations teams.
• Idira Identity Security Platform Next-generation identity security platform securing human, machine, and agentic identities for enterprises with unified risk discovery, dynamic privilege, and lifecycle governance. Targets enterprise CISOs managing identity sprawl in the AI era.
• Prisma SASE Cloud-delivered Secure Access Service Edge platform providing Zero Trust Network Access, Cloud SWG, Autonomous DEM, and Prisma Browser for enterprise workforce security across hybrid environments.
• Prisma AIRS AI Runtime Security platform securing AI apps, agents, models, and data. Includes Runtime Security API, Runtime Firewall, Model Security, Red Teaming, and AI Agent Security capabilities. Customer base grew 10x YoY to 300+ customers.
• Cortex XSIAM AI-driven Security Operations platform applying 2,900 machine learning models with autonomous alert investigation and response. Executes 1.9 billion automated actions per year with mean time to remediation measured in minutes.
• Cortex XDR Extended Detection and Response platform providing AI-powered endpoint detection and response with behavioral analysis, anomaly detection, and automated threat response across enterprise environments.
• Cortex XSOAR Security orchestration, automation, and response platform providing playbook-based automation for incident response and security operations workflows across 700+ integrations.
• Cortex Xpanse Attack surface management platform discovering and monitoring internet-facing assets, unmanaged cloud resources, and third-party exposures for enterprise security teams.
• Prisma Cloud Comprehensive cloud security platform providing CIEM, CSPM, CWPP, container security, serverless security, and software supply chain security across multi-cloud environments.
• Next-Generation Firewalls (PA-Series, VM-Series, CN-Series) Hardware and software firewall solutions including PA-5200, PA-5400, and PA-7000 Series appliances, VM-Series virtual firewalls, and CN-Series container firewalls for enterprise network security.
• Prisma Browser Enterprise browser security solution providing Zero Trust browser security, data protection for non-SSO apps, and agentic AI governance and SASE security for enterprise workforce protection.
• PAN-OS Operating system powering Palo Alto Networks' next-generation firewalls with Advanced Threat Prevention, URL Filtering, WildFire, DNS Security, and enterprise IoT security capabilities.
• Quantum-Safe Security Platform Post-quantum cryptography security platform helping organizations prepare for and comply with mandated migration to quantum-safe encryption standards by 2030-2031.
• Sovereign Cortex with T Security Joint AI-powered cybersecurity solution with Deutsche Telekom for European regulated industries including healthcare, financial services, public sector, and critical infrastructure. Features data sovereignty controls and independent encryption key management.
• Unit 42 Managed Detection & Response Managed security services providing 24/7 expert-led defense for every attack surface, with elite incident responders and security consultants. Handles 1,000+ incident response engagements per year.
• Prisma Access Cloud-delivered secure access service providing security for all users, apps, locations, and devices with SASE capabilities including VPN replacement for secure remote access.
• Next-Gen Security Suite Cloud-delivered AI-assisted platform combining multiple security tools into a unified zero trust solution for hybrid and multi-cloud environments. Targets CISOs consolidating point products.

Quantifiable outcome

• 90% reduction in MTTR (Mean Time to Remediation)
• +6 more outcomes

Named customers9 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability11 records

Feature5 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• IBM and Red HatcoreStrategic or Co-development Partner · 24 June 2026Collaboration to expand Project Lightwell, combining Palo Alto Networks' Virtual Patching capability with IBM and Red Hat's $5 billion open source security initiative. Creates dual-action 'shield-and-fix' defense that can deploy network-level protections the same day a vulnerability is discovered. Early adopters include Bank of America, Citi, Goldman Sachs, and JPMorgan Chase.
• WiprocoreImplementation/ SI/ Consulting Partner · 23 June 2026Expansion of partnership to jointly offer AI-driven Managed Detection and Response (MDR) services combining Palo Alto Networks' Cortex XSIAM platform with Wipro's CyberShield managed security capabilities. Uses machine learning, AI, and automation for proactive cyber defense, faster threat detection and response. Delivered through Wipro's eight Cyber Defense Centers using SOC GURU framework.
• OpenAIcoreGTM or Marketing Partner · 23 June 2026Daybreak Cyber Partner Program launch partner. Palo Alto Networks joins ~30 cybersecurity vendors including Cisco, IBM, CrowdStrike, and Wiz in OpenAI's cybersecurity initiative. Codex Security plugin has scanned 30+ million commits across 30,000+ codebases, with over 500,000 automated fixes and 70,000+ findings manually marked as fixed.
• DatabrickscoreTechnology or Integration · 16 June 2026Integration of Prisma AIRS Runtime Security API with Databricks Unity AI Gateway, embedding real-time AI security controls directly into the AI governance layer. Enables organizations to enforce consistent security policies across AI workloads including agents, applications, models, and MCP servers while preventing threats such as prompt injections, data leakage, and malicious code execution.
• Navarino (Ozora)minorStrategic or Co-development Partner · 11 June 2026Fully managed maritime cybersecurity service developed in partnership with Palo Alto Networks to protect vessels against cyber threats enabled by LEO connectivity. Announced at Posidonia shipping industry event in Athens.
• Deutsche TelekomcoreStrategic or Co-development Partner · 9 June 2026Launch of Sovereign Cortex with T Security, a joint AI-powered cybersecurity service for European regulated industries with advanced data sovereignty controls. Deutsche Telekom independently governs encryption keys outside control of Palo Alto Networks and Google. Targets healthcare, financial services, public sector, and critical infrastructure under DORA, NIS2, and GDPR compliance frameworks. Initial release planned for Q3 2026.
• NavarinominorStrategic or Co-development Partner · 5 June 2026Launch of Ozora, a fully managed maritime cybersecurity service developed in partnership with Palo Alto Networks. Combines next-generation firewall technology, SentinelOne endpoint detection and response capabilities, and 24/7 SOC monitoring. Designed to protect vessels against cyber threats enabled by LEO satellite connectivity.
• Anthropic (Project Glasswing)coreStrategic or Co-development Partner · 3 June 2026Project Glasswing partner - Anthropic's Mythos AI model achieved ~50% improvement in code writing ability and could identify vulnerabilities in 2-3 weeks that would normally require a full year of manual penetration testing. Palo Alto Networks collaborated on Project Glasswing as part of early access to frontier AI security capabilities.

Scale indicators11 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Zscaler: Direct competitor in SASE/ZTNA market (Prisma SASE vs. Zscaler Zero Trust Exchange). Both target enterprise digital transformation with cloud-delivered security and compete for the same CIO/CISO budgets on network security modernization.
• Fortinet: Direct competitor in network security/firewall market (Strata NGFW vs. FortiGate). Both serve enterprise and mid-market with integrated security platforms including NGFW, SD-WAN, and security operations capabilities.
• Check Point Software: Direct competitor in network security and cybersecurity platforms (Strata/Quantum vs. Palo Alto Strata). Both target enterprise customers with consolidated security architectures spanning network, cloud, and endpoint protection.
• SentinelOne: Direct competitor in endpoint security and XDR (Cortex XDR vs. Singularity Platform). Both target enterprise security operations with AI-driven endpoint detection and response capabilities and are pursuing broader platformization strategies.
• CyberArk (acquired): Now part of PANW as Idira identity security platform. Previously direct competitor in privileged access management, and was a key Gartner-recognized identity security vendor before $25B acquisition closed in February 2026.
• CrowdStrike: Direct competitor across endpoint security (Cortex XDR vs. CrowdStrike Falcon), SIEM/SOAR (XSIAM vs. Falcon LogScale), and AI security (Prisma AIRS vs. Charlotte AI). Both target large enterprises with platform consolidation strategies and AI-driven security operations.

Broad incumbents

• Cisco: Broad incumbent competitor in network security (Cisco Secure Firewall vs. Strata) and has expanded into security operations, SASE, and identity via Splunk and other acquisitions. Cisco's networking incumbency creates an integrated security+networking alternative for enterprises.
• Microsoft Security: Broad incumbent competitor across security operations, identity (Entra ID vs. Idira), SIEM (Sentinel), and cloud security (Defender for Cloud). Microsoft's bundling with Azure and M365 creates pricing pressure across PANW's portfolio, especially in mid-market.

Emerging players

• Cloudflare: Emerging competitor in SASE, ZTNA, and cloud security (Cloudflare One vs. Prisma SASE). Increasingly competitive in web application security, bot management, and edge security, with growing enterprise traction against PANW's Prisma platform.
• Wiz: Emerging competitor in cloud security (Prisma Cloud vs. Wiz CNAPP). Wiz's agentless approach and rapid enterprise adoption has made it a significant disruptor in the cloud security posture management market where PANW has historically led.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat8 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/PaloAltoNtwks
• YouTubeyoutube.com/user/paloaltonetworks
• Facebookfacebook.com/PaloAltoNetworks
• LinkedInlinkedin.com/company/palo-alto-networks

Compliance22 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries4 records

Funding overview

Funding rounds5 records

Investors8 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A29 records

Investments7 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Palo Alto Networks