What is Palo Alto Networks Net Worth 2024: Next-Gen Security and Financial Growth

Palo Alto Networks net worth has grown significantly in 2024, driven by its Next-Generation Security ARR and innovation.

At Ando Money, we provide an in-depth look into the company’s finances, breaking down its revenue and key factors contributing to its success.

Let’s dive into how Palo Alto Networks stays at the forefront of cybersecurity and its impact on its financial performance.

Quick Facts

What is the Net Worth/Market Cap of Palo Alto Networks in 2024?

Palo Alto Networks’ net worth, primarily represented by its market capitalization, reached $120.27 billion as of October 2024.

This figure places the company among the top global cybersecurity firms. Palo Alto Networks has rapidly expanded its financial growth, largely thanks to its focus on Next-Generation Security ARR, growing by 43% year over year.

When compared with competitors and partners, it’s clear that Palo Alto is a formidable player. To understand its position within the industry, here are a few related companies:

• Fortinet
• CrowdStrike
• Cisco Systems
• FireEye
• Google Cloud
• IBM
• Microsoft
• Symantec
• Check Point
• McAfee

Explore the largest companies by net worth here.

Palo Alto Networks Financial Performance Overview

Annual Revenue Breakdown of the Company

In 2024, Palo Alto Networks generated $8.0 billion in revenue, a 16% increase year over year. This growth was fueled by its strong position in the cybersecurity market, particularly in the cloud security segment.

A significant portion of its revenue stems from its subscription and support services, accounting for over $6.42 billion in revenue.

Meanwhile, product revenue reached $1.6 billion, maintaining steady growth compared to previous years.

Next-Generation Security ARR and its Role in Financial Growth

Palo Alto Networks’ Next-Generation Security ARR (Annual Recurring Revenue) stood at $4.2 billion, growing at an impressive rate of 43% year-over-year.

This figure reflects the company’s commitment to expanding its cloud security services, which have been a key growth driver.

This segment includes its Prisma and Cortex offerings, which cater to clients in need of innovative, AI-powered security solutions.

As demand for cloud-based cybersecurity solutions continues to rise, this ARR metric is expected to grow further.

Performance of Subscription and Support Services

Subscription and support services remain the backbone of Palo Alto Networks’ business model.

Generating $6.42 billion in 2024, this stream represents a shift towards long-term recurring revenue, ensuring stability.

The company’s customers benefit from extensive support and continuous updates to their cybersecurity products, which enhances customer retention and overall satisfaction.

Operating Expenses and Their Impact on Profitability

Palo Alto Networks’ operating expenses for 2024, including R&D and sales and marketing, totaled $5.28 billion.

While these expenses are significant, they have driven innovation and growth, particularly in new product development.

Despite high operating costs, Palo Alto Networks maintained a non-GAAP operating margin of 27.3%, showcasing its ability to manage expenses while sustaining profitability.

Profitability Metrics: Net Income and Operating Margins

Palo Alto Networks achieved a GAAP net income of $2.58 billion in 2024, reflecting a substantial increase from $439.7 million the previous year.

The company’s operating margins improved as well, indicating efficient use of resources in generating profits.

With ongoing innovation and strategic investments, Palo Alto Networks expects continued profitability and margin expansion in the coming years.

Growth of Remaining Performance Obligations (RPO)

The company’s Remaining Performance Obligations (RPO), which reflects future revenue from signed contracts, reached $12.7 billion in 2024, up 20% year-over-year.

This growth underscores the long-term trust that clients place in Palo Alto Networks’ security solutions.

With a growing number of multi-year contracts, RPO is an important indicator of the company’s future revenue streams.

Financial Impact of Acquisitions on Revenue

Palo Alto Networks has made several acquisitions to fuel its growth, including the pending acquisition of IBM’s QRadar SaaS assets.

These acquisitions have enhanced the company’s product portfolio, particularly in cloud security.

While the financial impact of these acquisitions is still unfolding, they are expected to contribute significantly to future revenue growth, further solidifying the company’s position in the cybersecurity market.

Assets and Liabilities Overview

As of 2024, Palo Alto Networks’ total assets amounted to $19.99 billion, reflecting a strong balance sheet.

This includes significant investments in short-term and long-term financing receivables, as well as goodwill from acquisitions.

On the liability side, the company holds $7.68 billion in current liabilities, including deferred revenue and debt obligations, indicating a well-balanced financial strategy that supports continued growth.

Future Revenue Projections and Financial Outlook

Looking ahead, Palo Alto Networks projects its revenue for fiscal year 2025 to reach between $9.1 billion and $9.15 billion, reflecting anticipated growth of 13% to 14%.

The company remains focused on expanding its Next-Generation Security ARR and leveraging its acquisitions to continue driving revenue.

FAQs about Palo Alto Networks

What is Palo Alto Networks’ primary source of revenue?

The majority of Palo Alto Networks’ revenue comes from subscription and support services, which generated $6.42 billion in 2024.

How has Palo Alto Networks expanded its business in recent years?

The company has grown through strategic acquisitions, such as IBM’s QRadar SaaS assets, and the continuous development of its Next-Generation Security portfolio.

What is Palo Alto Networks’ Remaining Performance Obligation (RPO)?

As of 2024, it reported an RPO of $12.7 billion, which represents future revenue from signed contracts.

How does Palo Alto Networks manage its operating expenses?

In 2024, the company invested heavily in R&D and sales and marketing, with total operating expenses reaching $5.28 billion, while maintaining a healthy operating margin.

Conclusion

In summary, Palo Alto Networks continues to grow as a cybersecurity leader, driven by its innovative security solutions and strategic financial management.

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