What Palo Alto Networks, Inc. told the SEC could break it.

PANW relies on one electronics manufacturing services provider to assemble most products and on sole-source component suppliers (including for integrated circuits); these component suppliers are geographically concentrated in Asia, and PANW lacks volume purchase contracts — exposing it to price swings and regional disruption.

“We rely on an electronics manufacturing services provider (“EMS provider”) to assemble most of our products and sole source component suppliers for certain components.”

For fiscal 2025, three distributors each individually represented 10%+ of Palo Alto Networks' total revenue (18.8%, 14.4% and 11.0%) and in aggregate 44.2%; substantially all revenue flows through channel partners, and no single end-customer exceeded 10%.

“For fiscal 2025, three distributors represented 10% or more of our total revenue, representing 18.8 %, 14.4 %, and 11.0 % respectively. No single end-customer accounted for more than 10% of our total revenue in fiscal 2025, 2024, or 2023.”

PANW has business operations and employees in Israel and intends to grow its presence there (including via the proposed ~$25B CyberArk acquisition); these operations could be disrupted by political instability, civil unrest, terrorism, or the hostilities in Israel and the surrounding region.

“We have business operations in Israel and intend to continue growing our presence in Israel, including in connection with our proposed acquisition of CyberArk. Our operations in Israel could be disrupted by political instability, civil unrest, terrorist attacks, acts of violence, acts of war, or other military actions”

PANW's Asia-concentrated component supply chain is vulnerable to international regulations (tariffs, sanctions, import/export controls); it has previously experienced supply-chain disruption and increased costs from U.S. trade-policy changes and is monitoring China-Taiwan and U.S.-China tensions.

“international regulations, such as tariffs, sanctions and import and export controls. In the past, we experienced supply chain disruption and have incurred increased costs resulting from inflationary pressures and changes in U.S. trade policy. We are also monitoring the tensions between China and Taiwan, and between the U.S. and China”