HIGHBuilt-inProduct / Revenue mix
80.5%
subscription and support
“10-K Item 1A: 'Subscription and support revenue accounts for a significant portion of our revenue, comprising 80.5% of total revenue in fiscal 2025'”
PANW · Concentration risk · 10-K extracted
Palo Alto Networks (PANW) concentration risks
Updated
The most significant concentration Palo Alto Networks discloses is subscription and support at 80.5%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Palo Alto Networks’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 2 disclosed concentrations
HIGH1
MEDIUM1
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
MEDIUMOutside partyCustomer
44.2%
three distributors
“10-K Item 1A: 'three distributors individually represented 10% or more of our total revenue and in the aggregate represented 44.2% of our total revenue'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-06-24The company's concentration profile combines a high-share product-revenue composition with a moderate-share channel dependency. On the revenue side, subscription and support revenue accounted for 80.5% of total revenue in fiscal 2025 — a high-share, structural concentration reflecting the deliberate shift toward recurring platform economics rather than transactional product sales. This structural character means the concentration is intentional and management-driven, and its primary risk is renewal rates, contract expansions, and the pace of platform adoption rather than sudden customer attrition. On the distribution side, three distributors individually represented 10% or more of total revenue each, and in aggregate accounted for 44.2% of total revenue — a moderate-share dependency by disclosed size. The fact that revenue is routed through a small number of large channel partners means that any deterioration in those distributor relationships — whether due to conflict, competition, or pricing disputes — could affect revenue in the near term and introduce execution risk around direct-to-enterprise transitions. The 44.2% aggregate is a meaningful share for three counterparties in a channel context. The two exposures interact differently: the subscription-and-support concentration is a durable structural feature that supports revenue predictability, while the distributor concentration is a dependency that introduces idiosyncratic counterparty risk. Together the profile reflects a business with strong recurring revenue underpinnings but meaningful channel concentration at the go-to-market level. Subscription renewal and expansion metrics, alongside distributor relationship health, are the primary variables to monitor.
For the engine’s reasoning on PANW’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Software - Infrastructure
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| APPN | Appian Corporation | 2 | 2 | 0 | 4 |
| PANW● | Palo Alto Networks, Inc. | 1 | 1 | 0 | 2 |
| AVPT | AvePoint, Inc. | 1 | 0 | 0 | 1 |
| ATEN | A10 Networks, Inc. | 0 | 2 | 0 | 2 |
| ACIW | ACI Worldwide, Inc. | 0 | 0 | 0 | 0 |
| AKAM | Akamai Technologies, Inc. | 0 | 0 | 0 | 0 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.