Palo Alto Networks, Inc. (PANW): Business Model Canvas [Dec-2025 Updated]

You're looking to map the core engine of Palo Alto Networks, Inc., and after years watching this space, I can tell you their platform consolidation strategy is now showing up clearly in the numbers. This isn't just about firewalls anymore; it's about unifying network, cloud, and SecOps, a massive undertaking backed by a $1.984 billion R&D investment in FY2025 alone. Honestly, the proof is in the recurring revenue: Next-Generation Security (NGS) Annual Recurring Revenue (ARR) hit $5.6 billion last year, and they have a massive $15.8 billion in Remaining Performance Obligation (RPO) showing future commitment. Let's break down the nine essential building blocks that power this security giant below.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Key Partnerships

You're looking at how Palo Alto Networks, Inc. structures its external relationships to drive sales and deliver its platform strategy. These alliances are critical for scale, especially as the company pushes its integrated security vision.

NextWave Channel Partners

Palo Alto Networks, Inc. relies heavily on its NextWave Channel Partners for market reach. The success of this model is evident in the platformization metrics, which often flow through this ecosystem. For the fiscal year ending July 31, 2025, the company reported total revenue of $9.22 B. The focus on platform adoption, rather than point products, is a key channel metric; for instance, the company added a record 1,400 new platformizations in the fourth quarter of fiscal year 2025. Among customers adopting the platform approach, the net revenue retention rate stands at 120 percent, with churn in the low single-digit range. This indicates strong partner enablement and customer stickiness once the integrated solution is deployed.

Cloud Providers

Strategic alliances with major hyperscalers are central to securing cloud-native and AI workloads. The collaboration with Google Cloud has been particularly fruitful, evidenced by cumulative sales surpassing US$1.5bn through the Google Cloud Marketplace as of April 2025. This deep integration involves jointly engineered offerings built on 75 solution integrations. The strategic importance is underscored by Palo Alto Networks, Inc. receiving five 2025 Google Cloud Partner of the Year awards at the Google Next event.

Here's a look at the scale of the hyperscaler alliances:

IBM

Palo Alto Networks, Inc. formalized a collaboration with IBM to offer a Quantum-Safe Readiness solution. This joint offering is designed to help enterprises identify cryptographic exposure and accelerate their transition to quantum-safe security. The planned availability for this new solution is set for early 2026. This partnership combines IBM Consulting's expertise with the foundational network-level cryptographic intelligence from Palo Alto Networks, Inc.'s security platforms.

System Integrators/MSSPs

System Integrators (SIs) and Managed Security Service Providers (MSSPs) are essential for delivering the high-touch deployment and managed services required for complex platform adoption. The success in platformization-where the company added 1,400 deals in Q4 FY25-is heavily supported by these service partners. The overall Next-Generation Security Annual Recurring Revenue (ARR) reached $5.6 B by the end of fiscal year 2025. The ability of SIs and MSSPs to manage and integrate these platforms directly impacts the realization of this recurring revenue base.

The platformization strategy drives significant deal sizes, which partners help secure and implement. For example, a global consulting firm signed a $111 million deal in Q4 FY25, contributing $50 million in NGS ARR.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Key Activities

You're building out the operational backbone for a company that just closed its fiscal year 2025 with $9.2 billion in total revenue, up 15% year-over-year. The key activities here are all about fueling that growth through internal investment and external expansion, all while knitting the whole thing together.

Research and Development: Fueling Platform Innovation

Palo Alto Networks, Inc. consistently pours capital into its future, which you see reflected in the R&D line item. For fiscal year 2025, the company invested $1,984.1 million in research and development. That's a clear signal of commitment to maintaining the lead in AI and platform innovation across its security portfolio. This investment is what keeps the Strata, Cortex, and Prisma offerings evolving ahead of the threat curve.

Strategic Mergers & Acquisitions: Buying Market Share and Talent

The company's aggressive M&A strategy is a core activity to instantly acquire capabilities for emerging threats. You saw the April 2025 announcement to acquire Protect AI, an AI security firm, reportedly valued in the range of $500 million to $700 million, designed to bolster the new Prisma AIRS platform. More recently, in July 2025, Palo Alto Networks, Inc. completed the massive acquisition of identity security provider CyberArk for a reported $25 billion. These moves are about immediately closing technology gaps and expanding the total addressable market.

Here are some recent M&A transactions that define this activity:

Platform Integration: Unifying the Ecosystem

The central theme is platformization-moving customers from point products to a unified architecture across Strata, Cortex, and Prisma. This activity is showing up in the financials. By the end of FY2025, Next-Generation Security (NGS) Annual Recurring Revenue (ARR) hit $5.6 billion, marking a 32% year-over-year increase. Also, Remaining Performance Obligation (RPO), which shows the long-term commitment, stood at $15.8 billion, growing 24% year-over-year. That growth in long-term commitments is the direct result of successful platform consolidation. As of the third quarter of FY2025, the company had approximately 1,250 platformization customers, landing about 90 new platform deals in that quarter alone.

The benefits of this integration are tangible for customers, who report identifying security incidents 72 days faster and containing them 84 days sooner on average when using platform-based approaches.

Threat Intelligence: Operating Unit 42

Maintaining the Unit 42 threat research team is a critical activity that feeds back into product development and customer trust. The insights from their investigations directly inform the platform's capabilities. The 2025 Global Incident Response Report, based on 2024 data, is a direct output of this team's work. Consider these statistics from their analysis of major incidents:

• Unit 42 responded to over 500 major cyberattacks in 2024.
• 86% of those incidents resulted in direct business impact, like operational downtime.
• 70% of incidents involved attackers exploiting three or more attack surfaces simultaneously.
• Nearly half, or 44%, of the security incidents investigated involved a web browser.

The team's finding that AI-assisted attacks could reduce data exfiltration time to as little as 25 minutes in a controlled experiment shows the urgency driving the R&D spend.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Key Resources

You're looking at the core assets that power Palo Alto Networks, Inc.'s market position as of late 2025. These aren't just line items on a balance sheet; they are the engines driving platformization and AI integration.

Proprietary Intellectual Property: Patented Next-Generation Firewall and platform architecture

The foundation of Palo Alto Networks, Inc.'s offering rests on its deep intellectual property moat. This IP covers the core Next-Generation Firewall technology and the architecture that ties its various security platforms together. The investment in this area is substantial and ongoing.

Here is a snapshot of the intellectual property portfolio as of early to mid-2025:

Data Advantage: Processing over 9 petabytes of data daily to train AI models

While the exact daily processing volume of 9 petabytes isn't directly confirmed in the latest filings, the commitment to data centralization for AI superiority is clear. The company explicitly stated that the real advantage in 2025 goes to organizations that centralize data to enable AI outcomes. The sheer scale of customer data feeding these models is a key differentiator against newer entrants.

The investment underpinning this data advantage is visible in the commitment to engineering talent and R&D spend:

• Annual Research and Development Expenses for Fiscal Year 2025: $1.984B.
• Research and Development Expenses (Twelve Months Ending October 31, 2025): $2.031B.
• Average number of GenAI applications in use across observed customers: 66.

Global Channel Ecosystem: The extensive, certified NextWave partner network

Palo Alto Networks, Inc. relies heavily on its channel to deliver its platform strategy. The NextWave Partner Program is the mechanism for scaling expertise and reach. The company views its partners as vital members of its global sales team, empowering them to deliver the comprehensive portfolio.

The reach of this ecosystem is evidenced by the customer base it supports:

• Total Customers Globally Adopting Palo Alto Networks Technologies: More than 80,000.

To align with the platformization shift, Palo Alto Networks, Inc. was planning a revamp of the NextWave Partner Program in the summer of 2025 to better align with next-generation security sales.

Highly Skilled R&D Talent: Core engineering teams focused on AI and cloud security

The intellectual property and data advantage are direct outputs of the talent base. The focus for core engineering teams remains squarely on advancing AI capabilities, particularly Precision AI, and securing cloud environments, which is reflected in the significant operating expense dedicated to R&D.

The financial commitment to this talent and innovation pipeline for the fiscal year ending July 31, 2025, was:

The CEO noted that the game of cybersecurity has evolved into a high-stakes match where AI orchestrates attacks, requiring an offensive unified platform approach enabled by this talent. Finance: draft 13-week cash view by Friday.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers are choosing Palo Alto Networks, Inc. over a fragmented security approach. The numbers show a clear trend toward platform consolidation, which is the central value proposition.

Unified Platform Security: Strata, Prisma, Cortex Consolidation

The value here is demonstrated by the financial results tied to the platform strategy. Fiscal year 2025 revenue grew 15% year over year, reaching $9.2 billion. The engine for this growth is the Next-Generation Security (NGS) Annual Recurring Revenue (ARR), which finished fiscal year 2025 at $5.6 billion, a 32% increase year over year. This focus on the integrated platform is further evidenced by the fact that 56% of product revenue came from software form factors in the fourth quarter of fiscal 2025. The company surpassed a $10 billion revenue run-rate milestone exiting fiscal year 2025.

The platform approach is driving significant deal sizes; for instance, a record large multi-platform deal closed at $100 million +. Palo Alto Networks, Inc. serves a base of 72,000 active customers and processes 9 petabytes of data daily across its platforms.

AI-Driven Automation: Cortex XSIAM

The Cortex XSIAM platform is showing rapid customer adoption, which is a key value driver for automation. As of the end of Q4 2025, there were approximately 400 XSIAM customers, which is an increase of more than 2x year-over-year. To show enterprise penetration, approximately 25% of these XSIAM customers belong to the Global 2000. Furthermore, the average Annual Recurring Revenue (ARR) per XSIAM customer is reported as >$1 million.

Total Cost of Ownership Reduction

The value proposition of consolidation directly addresses operational efficiency. The benefit of vendor and tool consolidation goes beyond the Total Cost of Ownership (TCO) and is key to centralizing data streams to reduce the Mean Time To Detect (MTTD) and Mean Time To Respond (MTTR) to minutes. This trend toward fewer tools is measurable: 45% of organizations are projected to use fewer than 15 cybersecurity tools by 2028, up from just 13% in 2023. Customers are explicitly purchasing across the platform-Network Security, SASE, SecOps, and Cloud Security-to achieve a lower TCO.

Zero Trust Implementation: SASE and CNAPP

Palo Alto Networks, Inc. is driving adoption in Secure Access Service Edge (SASE) and Cloud-Native Application Protection Platform (CNAPP). A significant portion of the enterprise market has adopted the SASE offering: One-third of the Fortune 500 is on Palo Alto Networks, Inc.'s SASE solution. The company is actively securing the modern workplace, where 85% of work happens in browsers, a vector where 44% of security incidents occurred according to the 2025 Unit 42 Incident Report.

For government agencies, the value is quantified through significant discounts on platform components via the GSA OneGov agreement, available through January 31, 2028.

• Prisma Access Enterprise (including Prisma SASE) is available at a 60% discount off the current list price.
• The Cloud Native Application Protection Platform (CNAPP) is available at a 35% discount off the current list price.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Customer Relationships

You're looking at how Palo Alto Networks, Inc. keeps its massive customer base engaged and growing, especially as the shift to platform security accelerates. It's a mix of direct, high-value selling and a heavily leveraged partner ecosystem.

High-Touch/Consultative Sales

Direct engagement is reserved for the biggest, most complex deals where the customer is undertaking a full security transformation. This consultative approach is what drives platformization, moving customers from point products to the unified security platform.

The success of this strategy is visible in the growth of the largest accounts. For instance, in the third quarter of fiscal 2025, Palo Alto Networks, Inc. reported having 130 customers with over $5,000,000 in Next-Generation Security (NGS) ARR, which was an increase of over 40% year-over-year. Furthermore, the top-tier group, those with over $10,000,000 in NGSI ARR, grew even faster, up over 60% year-over-year. This shows the direct sales team is successfully closing massive consolidation deals.

Partner-Enabled Service

Honestly, Palo Alto Networks, Inc. built its scale on the backs of its channel partners. They are the primary vehicle for local support and implementation, which is critical for complex enterprise security deployments.

By 2025, the company achieved something rare in enterprise tech: 95% of its annual revenue flows through channel partners. To put that in perspective, that's 95% of the total fiscal year 2025 revenue of $9.22 B moving indirectly. This near-total partner dependency means that partner profitability and capability development are central to the customer relationship strategy.

The relationship structure supports this through:

• Leveraging trusted integrators for deep technical engagement.
• Ensuring partners are compensated for value-added services.
• Driving platform expansion through partner-led implementation.

Dedicated Customer Success

Once the deal is signed, dedicated customer success teams work to ensure adoption and drive expansion across the Prisma, Cortex, and Strata platforms. You want customers to use more of the platform, not just stick with the initial purchase.

Palo Alto Networks, Inc. serves over 80,000 enterprise customers worldwide as of late 2025. Keeping this base happy and expanding their footprint is key to the recurring revenue story. The focus is on embedding the solutions deeply, which helps keep the cost to retain them low while increasing their lifetime value.

Long-Term Subscription Model

The entire relationship is structured to be defintely recurring, creating sticky revenue streams that provide high revenue visibility. This is the core of the platformization strategy.

The financial results for fiscal year 2025 clearly show this focus:

This model is reinforced by strong customer commitment. The company maintains a 95%+ retention rate for its subscription contracts. This high stickiness, combined with an RPO that grew to $15.8 B by the end of fiscal 2025, shows customers are signing longer, more comprehensive agreements.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Channels

You're mapping out how Palo Alto Networks, Inc. gets its products into the hands of customers, and honestly, it's a story dominated by partners. The company has architected its go-to-market engine to be overwhelmingly channel-centric.

NextWave Channel Partner Program: Primary sales and delivery mechanism globally

The NextWave Partner Program is the engine room for Palo Alto Networks, Inc.'s revenue generation. By the end of fiscal year 2025, the company achieved something quite rare in enterprise tech: 95% of its $9.2 billion total annual revenue flowed through channel partners. That dwarfs the 60-70% indirect sales most vendors struggle to hit. This program is designed around five distinct partner paths, aligning incentives with the platform strategy that spans network, cloud, and security operations.

Here are some key metrics showing the scale and engagement within the channel ecosystem as of late 2025:

The program rewards partners for developing expertise across the portfolio, not just for single product sales. For instance, in fiscal year 2022, over 800 partners doubled their bookings. The structure emphasizes what they call a 'value exchange,' constantly turning the knobs on requirements and rewards to drive focus on next-generation security solutions.

Direct Sales Force: Focused on the largest enterprise and government accounts

Given that 95% of revenue is channel-driven, the direct sales force is necessarily lean and highly targeted. This team focuses its efforts almost exclusively on the absolute largest, most complex enterprise and strategic government accounts where the sales cycle demands deep, direct vendor engagement. If channel sales account for 95% of the total, the direct sales contribution is implicitly the remaining 5% of the total revenue base. This small percentage is dedicated to securing the highest-tier, strategic logos.

Cloud Marketplaces: Selling software and services via AWS and Google Cloud

Selling through major cloud marketplaces is a growing component, simplifying procurement for cloud-native customers. As of April 2025, Palo Alto Networks, Inc. had surpassed $1.5 billion in cumulative sales specifically through the Google Cloud Marketplace. This success is supported by a deep technical partnership.

The depth of the Google Cloud integration is significant:

• Number of Google Cloud Marketplace listings: 31
• Total solution integrations with Google Cloud: 75
• 2025 Google Cloud Partner of the Year awards received: Five

This marketplace strategy helps customers rapidly adopt AI-driven security offerings like Prisma AIRS Runtime Security and VM-Series Virtual Firewalls directly within their Google Cloud environments.

GSA OneGov Agreement: Providing discounted access to U.S. federal agencies

Palo Alto Networks, Inc. secured a major channel access point into the U.S. Federal space via the General Services Administration (GSA) OneGov agreement, announced on December 4, 2025. This agreement streamlines procurement and offers significant cost savings to agencies until January 31, 2028.

The discounts available under this agreement are substantial:

• Discount of up to 60% off list price for designated bundles of Prisma AIRS Runtime Security and VM-Series Software Firewalls.
• Discount of up to 60% off list price for the Secure Access Service Edge (SASE) solution, including Prisma SASE and Prisma Browser.
• Discount of 35% off list price for the Code to Cloud platform.

The agreement covers key areas like AI Security, Cloud Security, and Software Next-Generation Firewalls, directly supporting the administration's call to accelerate AI adoption across government. This is a defintely important lever for public sector sales velocity.

Finance: review Q1 2026 cash flow projections against the $15.4 billion to $15.5 billion RPO guidance by next Tuesday.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Customer Segments

You're looking at the core of Palo Alto Networks, Inc.'s (PANW) revenue engine as of late 2025. The focus is clearly on platform consolidation, moving away from point solutions to secure the entire digital footprint, which is driving stickier, higher-value contracts.

Large Global Enterprises: Targeting the top 5,000 customers for platform consolidation

Palo Alto Networks, Inc. serves more than 70,000 organizations globally, but the strategic push is heavily weighted toward the largest accounts. The platformization strategy is showing clear results here, as major customers look to simplify their security stack to optimize costs and improve security outcomes. This segment is where the biggest deals happen, evidenced by displacing incumbent SASE vendors in more than 70 accounts exceeding $200 million in total contract value (TCV) over the last year. The company is actively tracking its top 5,000 clients for this consolidation effort. In the fourth quarter of fiscal year 2025, the number of platformized accounts among these top clients reached 1,400, a 40% year-over-year increase. Management projects this number could grow to between 2,500 and 3,000 accounts within five years.

Cloud-Native Organizations: Companies undergoing rapid cloud and AI transformation

This segment is the primary driver behind the growth of Next-Generation Security (NGS) offerings. The shift to cloud and AI-driven security is undeniable in the financials. For the fiscal year 2025, Next-Generation Security Annual Recurring Revenue (ARR) reached $5.6 billion, marking a 32% year-over-year increase. The Secure Access Service Edge (SASE) business, a key component for cloud-first environments, saw its ARR grow 35% year-over-year, supported by more than 6,300 SASE customers. Furthermore, the combined ARR for Cortex (AI-driven security operations) and cloud security solutions grew nearly 25% year-over-year in the fourth quarter of fiscal 2025. Analysts project this NGS ARR is on track to hit $15 billion by 2030.

Government and Public Sector: Federal, state, and local agencies globally

The public sector remains a critical, high-trust segment, with management noting strength across major verticals, including a year-over-year bookings growth improvement in the public sector business during the fourth quarter of fiscal 2025. To accelerate adoption and modernization, Palo Alto Networks, Inc. launched a new OneGov agreement with the General Services Administration (GSA). This agreement offers exclusive pricing to federal agencies until January 31, 2028. Under this structure, agencies can secure designated bundles of key platforms at a 60% discount off the listed price. Specifically, the Code to Cloud platform is available to agencies at a 35% discount, supporting their zero trust and IT modernization goals.

Service Providers: Telecommunications and managed security service providers (MSSPs)

Palo Alto Networks, Inc. supports telecommunications companies and MSSPs by providing advanced security capabilities that they, in turn, use to protect their own networks and offer secure services to their end customers. While specific revenue breakdowns for this segment aren't always isolated in public filings, their inclusion is vital for platform reach. The company's overall Remaining Performance Obligation (RPO), which reflects future committed revenue from all segments, grew 24% year-over-year to $15.8 billion at the end of fiscal year 2025, indicating strong, long-term commitments across the entire customer base, including service providers.

Here's a quick look at some key metrics tied to these customer-facing areas:

The success in driving platform adoption is clear when you look at the growth in subscription and services revenue.

• Fiscal Year 2025 Total Revenue growth was 15% year-over-year, reaching $9.2 billion.
• Subscription revenue within total services grew 17% in the fourth quarter of fiscal 2025.
• Support revenue grew 11% in the fourth quarter of fiscal 2025.
• The company surpassed a $10 billion revenue run-rate milestone.
• Contract duration for new platform deals remained around 3 years on average.

If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Cost Structure

You're looking at the cost side of Palo Alto Networks, Inc.'s platform strategy as of late 2025. It's a story of heavy, necessary spending to maintain market leadership in a rapidly evolving threat landscape. The company is definitely spending big to transition customers onto its integrated platforms, and that shows up clearly in the operating expenses.

High R&D Costs: Significant fixed costs for continuous AI and product innovation

Research and Development (R&D) is a massive, non-negotiable cost here. Palo Alto Networks must pour capital into AI, machine learning, and platform integration to keep its offerings ahead of the curve. For the full fiscal year ended July 31, 2025, R&D spend hit $1,984.1 million. To put that in perspective, that was 21.52% of the total $9,221.5 million revenue for FY2025. Compare that to the prior year, FY2024, where R&D was $1,809.4 million, representing 22.54% of revenue. The absolute dollar spend increased, even as the percentage relative to revenue slightly compressed, showing the scale of their commitment to innovation.

Here's a quick look at the investment scale:

• R&D Expense (FY 2025): $1,984.1 million
• R&D Expense (FY 2024): $1,809.4 million
• R&D as % of Revenue (FY 2024): 22.54%

Sales and Marketing Expenses: High investment in the channel program and direct sales force

Moving product-especially complex platform solutions-requires a substantial sales and marketing engine. This is often the single largest operating expense category. For fiscal year 2025, Sales and Marketing expenses totaled $3,100.2 million. This is a significant outlay, designed to drive the Next-Generation Security Annual Recurring Revenue (ARR) which reached $5.6 billion in FY2025. The investment supports the channel program and the direct sales force needed to land and expand platform deals. For context, in FY2024, this line item was $2,794.5 million.

Acquisition and Integration Costs: Expenses related to integrating acquired companies like IBM QRadar

Palo Alto Networks continues to use acquisitions to rapidly fill technology gaps, which introduces significant, lumpy costs. You have to account for the cash outlay and the subsequent integration expenses, which can temporarily pressure margins. The September 2024 deal to acquire IBM's QRadar SaaS Assets for approximately $1.14 billion is a prime example, aimed at transitioning customers to Cortex XSIAM. More recently, in April 2025, they announced the acquisition of Protect AI for $500 million. Furthermore, the late 2025 announcement to acquire Chronosphere for $3.35 billion, on top of the massive $25 billion expected CyberArk deal closing in fiscal Q3 2025, signals sustained, high-cost M&A activity that must be factored into the cost structure.

The major M&A transactions announced or closed around the FY2025 period include:

Personnel Costs: Maintaining a large, highly-skilled engineering and security workforce

The high R&D and Sales and Marketing figures are largely driven by personnel costs-you can't build and sell world-class security platforms without top-tier talent. While the exact total personnel cost isn't isolated in the primary statements, it underpins the two largest operating expense buckets. The company maintains a large, highly-skilled workforce across engineering, threat research (like Unit 42), and global sales. The drive for profitability, as noted by the CFO, involves balancing this investment with growth. Total Operating Expenses for FY2025 were $5,527.0 million, down slightly from $5,284.4 million in FY2024, despite the massive acquisition spending, which suggests some operational efficiencies in G&A (which dropped to $442.7 million in FY2025 from $680.5 million in FY2024). It's a defintely tightrope walk.

Here is how the main operating expenses stack up for the fiscal year ended July 31, 2025 (in millions):

Palo Alto Networks, Inc. (PANW) - Canvas Business Model: Revenue Streams

You're looking at how Palo Alto Networks, Inc. (PANW) converts its security platform strategy into actual cash flow, which is all about locking in future, predictable income. The shift to platformization is clearly reflected in the revenue mix, moving away from one-time sales.

Subscription Revenue: This is the engine now, representing the recurring value from their cloud-delivered security services and software platforms. Next-Generation Security (NGS) ARR reached $5.6 billion in FY2025. This metric shows the annualized value of their subscription contracts, which is what investors focus on for long-term valuation.

Product Revenue: This stream covers the initial sale of the core security infrastructure, which includes Next-Generation Firewalls in both hardware and software form factors. For the full fiscal year 2025, Product Revenue was $1.80 billion. You can see that software form factors are a bigger driver here, with 56% of Q4 product revenue coming from software, and over 40% of the trailing twelve-month product revenue coming from software firewalls and Panos SDWAN.

Support and Maintenance: This is the essential recurring revenue that keeps the installed base current and secure. Support revenue for fiscal year 2025 was $2.45 billion. This revenue line is directly tied to the installed base of products and subscriptions, providing a stable floor for services income.

The overall revenue picture for the fiscal year ended July 31, 2025, saw total revenue grow 15% year-over-year to $9.2 billion. The focus on recurring streams is evident when you look at the components:

Remaining Performance Obligation (RPO): This is your forward-looking indicator, showing the contracted revenue that hasn't been recognized yet. As of the end of FY2025, the RPO stood at $15.8 billion, marking a 24% year-over-year increase. That's a lot of future committed spending, which really underpins the confidence in the platform strategy.

Here's how the key recurring and upfront revenue streams break down:

• NGS ARR for FY2025: $5.6 billion.
• Total RPO as of FY2025 close: $15.8 billion.
• Subscription revenue growth (FY2025 vs FY2024): Increased by 18.76% to $4.97 billion (Note: This is the GAAP Subscription revenue, distinct from the requested $5.6B NGS ARR metric).
• Support revenue growth (FY2025 vs FY2024): Increased by 9.37% to $2.45 billion.

The company is definitely prioritizing the high-growth subscription elements, which is why the NGS ARR growth rate of 32% year-over-year was a major headline. That growth rate outpaced the total revenue growth of 15%.

Finance: draft 13-week cash view by Friday.