Palo Alto Networks PANW is focusing on its platformization strategy, which involves getting its customers to adopt multiple PANW products spanning across network, cloud and endpoint security, under a unified platform approach. In the third quarter of fiscal 2026, the company added 110 new platformized customers, including 20 from the CyberArk and Chronosphere acquisitions. Total platformized customers reached approximately 2,280 at the end of the third quarter.
Platformized customers continue to show strong spending and retention trends. PANW’s platformized customers currently have a 120% net retention rate and single-digit churn. This means existing customers continue to buy more PANW products over time, while very few leave the platform. During the third quarter, the company shared examples of customers expanding their deployments. A large U.S. power producer adopted next-generation firewalls and SASE in an $80 million deal, while a global consulting company signed a contract worth more than $20 million to use Prisma AIRS for securing its AI applications and agents.
PANW is also expanding its platform through acquisitions. The CyberArk acquisition adds identity security, while Chronosphere strengthens its observability capabilities. The company has already launched around 1,000 cross-selling engagements related to CyberArk. Management believes these additions will help customers manage network security, cloud security, identity security, AI security and security operations from a single platform instead of using multiple vendors.
Platformization is central to PANW’s long-term financial goals. The company aims to reach more than 4,000 platformized customers and $20 billion in Next-Generation Security annual recurring revenues by fiscal 2030. If adoption continues to rise, PANW’s platformization strategy could remain one of the most important contributors to the company’s long-term growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 23.7% and 20.2%, respectively.
How Competitors Fare Against PANW
Competitors like CrowdStrike CRWD and SentinelOne S are also gaining ground through platform expansion and AI innovation.
CrowdStrike ended its first quarter of fiscal 2027 with $5.51 billion in ARR, reflecting 24% year-over-year growth. The robust increase was fueled by the growing adoption of CrowdStrike’s Falcon Flex subscription model.
Though comparatively a small competitor, SentinelOne posted first-quarter fiscal 2027 year-over-year growth of 23% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.
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