PANW has evolved into a $US134bn heavyweight in global cybersecurity. It generated US$9.2bn in revenue in FY25 and is forecast to grow more than 10% in FY26. To put that in perspective, PANW now produces roughly double (or more) the revenue of peers such as CrowdStrike, Fortinet, and Zscaler. As we’ve seen with the “Mag Seven”, scale matters, and in cybersecurity, deep pockets for AI investment are essential to stay ahead of hackers who play by no rules. For companies outsourcing their digital protection, knowing their provider has the financial muscle to “fight fire with fire” is increasingly important.
After recent volatility across tech and AI, PANW is now trading close to its 5-year average valuation. It may not offer the explosive upside of a smaller, fast-growing disruptor, but its scale and spending power mean it’s far less likely to be disrupted itself. The engine of the business is recurring subscription revenue across cloud security, threat detection, and AI-driven protection. As long as PANW remains at the top of the pack and continues investing heavily to stay there, its model is durable and attractive.
- We expect PANW will continue to lead the fight against cybercrime over the coming years.
