Palo Alto Networks: Steady Revenue Growth
Palo Alto Networks (PANW +9.20%) primarily provides cybersecurity solutions, including firewall appliances, software, and subscription services, to enterprises and government entities worldwide.
It completed a $25 billion acquisition of CyberArk Software, while reporting an approximately 17% net income margin for the quarter ended Jan. 31, 2026.
Zscaler: Consistent Revenue Expansion
Zscaler (ZS +4.06%) operates as a cloud security provider that secures user access to externally managed software applications and internal data centers for enterprise customers.
It expanded its Global Sovereignty options, while posting an approximately -4% net income margin for the quarter ended Jan. 31, 2026.
Why Revenue Matters for Investors
Revenue represents the total amount of money a company brings in from its core operations before any expenses are deducted, and it helps investors track the basic growth of a business.
Image source: The Motley Fool.
Quarterly Revenue for Palo Alto Networks and Zscaler
| Quarter (Period End) | Palo Alto Networks Revenue | Zscaler Revenue |
|---|---|---|
| Q2 2024 (April 2024) | $2.0 billion | $553.2 million |
| Q3 2024 (July 2024) | $2.2 billion | $592.9 million |
| Q4 2024 (Oct. 2024) | $2.1 billion | $628.0 million |
| Q1 2025 (Jan. 2025) | $2.3 billion | $647.9 million |
| Q2 2025 (April 2025) | $2.3 billion | $678.0 million |
| Q3 2025 (July 2025) | $2.5 billion | $719.2 million |
| Q4 2025 (Oct. 2025) | $2.5 billion | $788.1 million |
| Q1 2026 (Jan. 2026) | $2.6 billion | $815.8 million |
Data source: Company filings. Data as of May 10, 2026.
Foolish Take
Palo Alto Networks and Zscaler experienced a roller coaster 2026. Wall Street became worried artificial intelligence would steal some of their customers, leading to a widespread sell-off in the cybersecurity sector in the first quarter. Those fears as unfounded as both companies have adopted AI into their solutions, and their strong year-over-year revenue growth in Q1 indicates their solutions remain in demand.
Palo Alto Networks is a leader in the cybersecurity sector, and its far greater sales compared to Zscaler demonstrates this. Another key distinction between the two is that Palo Alto Networks is profitable. It posted net income of $432 million in its fiscal Q1 ended Jan. 31. Zscaler had a net loss of $34 million in that same timeframe.
That said, Zscaler’s lack of profits is typical of fast-growing tech companies, which tend to pour income into business expansion over achieving profitability. The strategy is working for the company, given its sales are growing far faster than its larger rival, as indicated by its year-over-year growth to $815.8 million in the first quarter.
