Who are Palo Alto Networks' biggest customers?

Customer A accounts for 15% of Palo Alto Networks' revenue (FY2026 10-K). Other disclosed customers: customer B 15%.

PANWPalo Alto Networks

Technology

$381.14+85% 1Y

$381.14

$141.6752 weeks$420.06

Is the business good?

Mixed

The checks split: margins widening, but 3 of 9 health tests passed.

1 good, 1 to watch, 1 neutral, 1 without data

Fundamental health (F-score)3 / 9SEC EDGAR · Jul 31, 2026

Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.

Margin direction, 3 years+1.5 pts

Operating profit is falling even as sales grow, costs are outrunning the top line.

Where ROE comes from3% ROA

A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

Leverage (Debt/EBITDA)better than 78% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is PANW?

Palo Alto Networks earns 2.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

2.1%

Return on invested capital · cost of capital 9.0% · 6.9 points below what the capital costs: growth destroys value

Operating margin: 6.0%
Operating margin · Software - Infrastructure median 7.5% · 12 months to Q4 2026
R&D as % of revenue: 22%
R&D as % of revenue
Gross margin: 70%
Gross margin

Operating margin by fiscal year
Year	Operating margin
FY2021	−7.1%
FY2022	−3.4%
FY2023	5.6%
FY2024	8.5%
FY2025	13%
FY2026	6.0%

Details›

Gross margin12 months to Q4 2026: 70%
Operating margin12 months to Q4 2026: 6.0%
Net margin12 months to Q4 2026: 2.7%
Free cash flow margin: 36%
R&D as % of revenue: 22%
Revenue, trailing twelve months: $11.5B
Free cash flow, trailing twelve months: $4.11B
Net income, trailing twelve months: $307M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 2.1%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

Customers and suppliers

Who buys from PANW and who it buys from, as the companies report it.

15%of revenue comes from customer A, the largest of 2 disclosed customers

Customerswho buys

Customer A
15%
Share of revenue · FY2026 10-K
Customer B
15%
Share of revenue · FY2026 10-K

Supplierswho it buys from

None disclosed.

A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; PANW’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.

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Software, Infrastructure

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