Palo Alto Networks

(3) Consists of non-cash interest expense for amortization of debt issuance costs related to the company's convertible senior notes.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

Debt for additional information.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

For convertible senior notes acquired from CyberArk, we have elected fair value option to simplify the accounting for embedded features that would otherwise require bifurcation from the debt-host and recognition as a separate derivative liability.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

government and agency securities 75 75 Total available-for-sale cash equivalents $ 612 $ $ $ 612 Investments: Commercial paper $ 10 $ $ $ 10 Corporate debt securities 3,521 20 ( 10 ) 3,531 U.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

government and agency securities 66 66 Asset-backed securities 734 4 ( 1 ) 737 Total available-for-sale investments $ 4,331 $ 24 $ ( 11 ) $ 4,344 - 12 - Table of Contents July 31, 2025 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash equivalents: Commercial paper $ 169 $ $ $ 169 Total available-for-sale cash equivalents $ 169 $ $ $ 169 Investments: Commercial paper $ 15 $ $ $ 15 Corporate debt securities 4,588 47 ( 1 ) 4,634 U.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

government and agency securities 29 29 Asset-backed securities 1,328 9 1,337 Total available-for-sale investments $ 6,130 $ 56 $ ( 1 ) $ 6,185 Unrealized losses related to our available-for-sale debt securities are primarily due to interest rate fluctuations as opposed to credit quality.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

Forward-Looking Statements This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including, without limitation, statements regarding our platformization strategy and related progress and opportunities, expectations regarding annual recurring revenue, remaining performance obligation, product development strategy and expectations regarding artificial intelligence (AI), and financial outlook for the fiscal first quarter 2026 and fiscal year 2026, mid- and long-term financial expectations.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

There are a significant number of factors that could cause actual results to differ materially from forward-looking statements made or implied in this press release, including developments and changes in general or worldwide market, geopolitical, economic, and business conditions failure of our platformization product offerings failure to successfully integrate acquisitions or achieve the expected benefits of our strategic partnerships and acquisitions, including the proposed transaction with CyberArk Software Ltd.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

In connection with our acquisition integration strategy, we initiated a plan to optimize the combined entity s workforce for a total estimated cost of $ 59 million.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026

Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, including change in fair value of contingent consideration liability, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, non-cash charges related to convertible notes, and income tax and other tax adjustments related to our long-term non-GAAP effective tax rate, along with certain non-recurring expenses and certain non-recurring cash flows.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

Forward-Looking Statements This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including, without limitation, statements regarding our platformization strategy and related progress and opportunities, expectations regarding annual recurring revenue, remaining performance obligation, product development strategy and expectations regarding artificial intelligence (AI), and financial outlook for the fiscal first quarter 2026 and fiscal year 2026, mid- and long-term financial expectations.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

For additional risks and uncertainties on these and other factors that could affect our financial results and cause actual results to differ materially from those described in the forward-looking statements we make in this press release are included under the captions Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in our Quarterly Report on Form 10-Q filed with the U.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

Palo Alto Networks defines non-GAAP net income as net income plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, including change in fair value of contingent consideration liability, amortization expense of acquired intangible assets, litigation-related charges, including legal settlements, and non-cash charges related to convertible notes.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

During the three months and fiscal year ended July 31, 2024, it also includes a litigation settlement charge.

SEC original ↗Palo Alto Networks — Earnings release (8-K exhibit)EX-99Aug 18, 2025

Legal Proceedings 43 Item 1A.

SEC original ↗Palo Alto Networks — 10-Q Quarterly report10-QJun 3, 2026