v3.26.1
Acquisition (Tables)
 9 Months Ended
Apr. 30, 2026
Business Combination [Abstract]  
Schedule of Purchase Consideration The total purchase consideration for the acquisition of Chronosphere was $3.0 billion, which consisted of the following (in millions):
Amount
Cash$2,842 
Fair value of replacement awards109 
Total$2,951 
The total purchase consideration for the acquisition of CyberArk was $21.1 billion, which consisted of the following (in millions):
Amount
Cash$2,308 
Common stock (112 million shares)
18,488 
Fair value of replacement awards265 
Total$21,061 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions):
Amount
Goodwill
$2,364 
Identified intangible assets
565 
Cash
57 
Net liabilities assumed
(35)
Total$2,951 
We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions):
Amount
Goodwill
$14,802 
Identified intangible assets
6,279 
Cash and cash equivalents743 
Accounts receivable, net of allowance for credit losses312 
Short-term and long-term investments1,217 
Net assets acquired
61 
Convertible senior notes
(1,303)
Deferred revenue(776)
Deferred tax liabilities
(274)
Total$21,061 
We have accounted for this transaction as a business combination and allocated the purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values, as presented in the following table (in millions):
Amount
Goodwill
$169 
Identified intangible assets
35 
Cash and restricted cash
20 
Net assets acquired
7 
Total$231 
Schedule of Finite-lived Intangible Assets Acquired as Part of Business Combination
The following table presents details of the identified intangible asset acquired (in millions, except years):
Fair ValueEstimated Useful Life
Developed technology$300 5 years
Customer relationships255 
6 years - 10 years
Trade name and trademarks10 1 year
Total$565 
The following table presents details of the identified intangible asset acquired (in millions, except years):
Fair ValueEstimated Useful Life
Developed technology$2,537 
5 years - 7 years
Platform renewals
3,500 
12 years - 14 years
Customer contracts
219 2 years
Trade name23 1 year
Total$6,279 
The following table presents details of the identified intangible asset acquired (in millions, except years):
Fair ValueEstimated Useful Life
Developed technology$35 5 years
Schedule of Restructuring and Related Costs
The following table summarizes employee severance charges related to the CyberArk acquisition (in millions):
Three and Nine Months Ended April 30, 2026
Cash Compensation
Share-based Compensation
Total
Cost of subscription and support revenue $2 $— $2 
Research and development1 — 1 
Sales and marketing13 16 29 
General and administrative8 1 9 
Total$24 $17 $41 
Schedule of Business Combination, Pro Forma Information
The following unaudited pro forma financial information summarizes the combined results of operations for Palo Alto Networks, Chronosphere, and CyberArk, as though the companies were combined as of the beginning of our fiscal 2025 (in millions):
Three Months Ended April 30,Nine Months Ended April 30,
2026202520262025
Total revenue
$3,043 $2,621 $8,917 $7,598 
Net income (loss)$8 $(2)$134 $(178)