HIGHBuilt-inProduct / Revenue mix
80%
subscription and support revenue
“10-K Item 1A: 'Subscription and support revenue accounts for a significant portion of our revenue, comprising 80% of total revenue in fiscal 2026'”
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 revenue at 80%, 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. How we score · Editorial policy
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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 · 3 disclosed concentrations
HIGH1
MEDIUM2
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
30%
two distributors
“10-K Item 1A: 'two distributors individually represented 10% or more of our total revenue and in the aggregate represented 30% of our total revenue'”
MEDIUMOutside partySupplier
manufacturing partners and limited sources of supply for hardware products
“10-K Item 1A: 'We depend on manufacturing partners and limited sources of supply for our hardware products'”
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-10-18Palo Alto Networks' largest exposure is structural and, in a recurring-revenue business, largely favorable in character: subscription and support revenue accounts for 80% of total revenue, a high-share concentration in the more predictable part of the model. The counterparty exposure sits in the channel. Two distributors individually represented 10% or more of total revenue and together represented 30%, a medium-share dependency. This is a route-to-market concentration rather than an end-customer one, but losing or disrupting either distributor would still affect how product reaches the market. On the supply side, the company depends on manufacturing partners and limited sources of supply for its hardware products, a medium-share dependency whose impact is limited by hardware being the smaller part of a subscription-led mix. Net, the revenue mix is a stabilizer, while the distributor concentration and hardware supply chain are the idiosyncratic items that could produce episodic shocks. None is disclosed as threatening the subscription base itself.
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 |
| AI | C3.ai, Inc. | 1 | 2 | 0 | 3 |
| PANW● | Palo Alto Networks, Inc. | 1 | 2 | 0 | 3 |
| AEVA | Aeva Technologies, Inc. | 1 | 0 | 0 | 1 |
| 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.