Supplemental Financial Information Q1'25 quarterly Palo Alto network

Supplemental Financial Information Q1'25 quarterly Palo Alto network

• 1. Non-GAAP Financial Measures and Other Key Metrics This unaudited supplemental financial information contains financial statements that have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). We use these non-GAAP financial measures and key metrics internally in analyzing our financial results and believe that the disclosure of these non-GAAP financial measures and key metrics will be useful to investors as an additional tool to evaluate our ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures or key metrics. Non-GAAP financial measures and key metrics are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our non-GAAP financial measures and key metrics to the most directly comparable GAAP measures has been provided in the financial statement tables included in this supplemental financial information, and investors are encouraged to review these reconciliations. We have not provided a reconciliation of forward-looking non-GAAP measures to the corresponding GAAP measures as they are not available without unreasonable effort. 1

• 2. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Revenue: Product $ 352.9 $ 388.1 $ 507.4 $ 341.1 $ 390.7 $ 391.0 $ 480.5 $ 353.8 Subscription and support 1,302.2 1,332.8 1,445.9 1,537.0 1,584.4 1,593.8 1,709.0 1,785.0 Total revenue 1,655.1 1,720.9 1,953.3 1,878.1 1,975.1 1,984.8 2,189.5 2,138.8 Cost of revenue: Product 100.5 93.4 104.3 77.4 88.2 77.9 104.7 75.0 Subscription and support 365.7 381.4 402.5 395.4 410.9 435.7 469.0 479.1 Total cost of revenue 466.2 474.8 506.8 472.8 499.1 513.6 573.7 554.1 Total gross profit 1,188.9 1,246.1 1,446.5 1,405.3 1,476.0 1,471.2 1,615.8 1,584.7 Product gross margin 71.5 % 75.9 % 79.4 % 77.3 % 77.4 % 80.1 % 78.2 % 78.8 % Subscription and support gross margin 71.9 % 71.4 % 72.2 % 74.3 % 74.1 % 72.7 % 72.6 % 73.2 % Total gross margin 71.8 % 72.4 % 74.1 % 74.8 % 74.7 % 74.1 % 73.8 % 74.1 % Operating expenses: Research and development 404.1 413.7 414.4 409.5 447.9 457.2 494.8 480.4 Sales and marketing 625.5 639.5 664.0 660.5 673.0 718.7 742.3 720.1 General and administrative 119.4 114.2 114.6 120.1 301.5 118.6 140.3 97.7 Total operating expenses 1,149.0 1,167.4 1,193.0 1,190.1 1,422.4 1,294.5 1,377.4 1,298.2 Operating income 39.9 78.7 253.5 215.2 53.6 176.7 238.4 286.5 Interest expense (6.9) (7.8) (5.7) (2.9) (2.8) (2.3) (0.3) (1.2) Other income, net 51.4 60.1 68.7 70.3 84.7 76.8 80.9 83.3 Income before income taxes 84.4 131.0 316.5 282.6 135.5 251.2 319.0 368.6 Provision for (benefit from) income taxes 0.2 23.2 88.8 88.4 (1,611.4) (27.6) (38.7) 17.9 Net income $ 84.2 $ 107.8 $ 227.7 $ 194.2 $ 1,746.9 $ 278.8 $ 357.7 $ 350.7 Palo Alto Networks, Inc. Condensed Consolidated Statements of Operations - Fiscal Quarters (In millions, except percentages) 2

• 3. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Revenue: Product $ 352.9 $ 388.1 $ 507.4 $ 341.1 $ 390.7 $ 391.0 $ 480.5 $ 353.8 Subscription and support 1,302.2 1,332.8 1,445.9 1,537.0 1,584.4 1,593.8 1,709.0 1,785.0 Total revenue 1,655.1 1,720.9 1,953.3 1,878.1 1,975.1 1,984.8 2,189.5 2,138.8 Cost of revenue: Product 96.9 89.7 100.8 73.8 84.8 74.4 101.8 71.8 Subscription and support 309.1 321.0 343.2 338.5 349.8 370.0 405.2 413.3 Total cost of revenue 406.0 410.7 444.0 412.3 434.6 444.4 507.0 485.1 Total gross profit 1,249.1 1,310.2 1,509.3 1,465.8 1,540.5 1,540.4 1,682.5 1,653.7 Product gross margin 72.5 % 76.9 % 80.1 % 78.4 % 78.3 % 81.0 % 78.8 % 79.7 % Subscription and support gross margin 76.3 % 75.9 % 76.3 % 78.0 % 77.9 % 76.8 % 76.3 % 76.8 % Total gross margin 75.5 % 76.1 % 77.3 % 78.0 % 78.0 % 77.6 % 76.8 % 77.3 % Operating expenses: Research and development 270.1 281.4 294.5 285.6 302.0 319.8 350.8 338.0 Sales and marketing 527.7 547.4 574.1 571.2 586.0 631.8 660.1 626.0 General and administrative 74.5 74.7 86.7 79.7 88.3 80.9 83.3 73.5 Total operating expenses 872.3 903.5 955.3 936.5 976.3 1,032.5 1,094.2 1,037.5 Operating income 376.8 406.7 554.0 529.3 564.2 507.9 588.3 616.2 Interest expense (5.2) (6.0) (4.2) (1.9) (1.7) (1.5) 0.3 (0.7) Other income, net 53.7 60.1 68.7 70.3 84.7 76.8 80.9 83.3 Income before income taxes 425.3 460.8 618.5 597.7 647.2 583.2 669.5 698.8 Provision for income taxes 93.6 101.4 136.0 131.4 142.5 128.3 147.3 153.9 Net income $ 331.7 $ 359.4 $ 482.5 $ 466.3 $ 504.7 $ 454.9 $ 522.2 $ 544.9 Palo Alto Networks, Inc. Non-GAAP Condensed Consolidated Statements of Operations - Fiscal Quarters (In millions, except percentages) 3

• 4. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 GAAP to Non-GAAP Reconciliations GAAP product gross profit $ 252.4 $ 294.7 $ 403.1 $ 263.7 $ 302.5 $ 313.1 $ 375.8 $ 278.8 Share-based compensation-related charges 1.8 1.9 1.8 1.8 1.6 1.7 1.2 1.4 Litigation-related charges(1) 1.8 1.8 1.7 1.8 1.8 1.8 1.7 1.8 Non-GAAP product gross profit $ 256.0 $ 298.4 $ 406.6 $ 267.3 $ 305.9 $ 316.6 $ 378.7 $ 282.0 Non-GAAP product gross margin 72.5 % 76.9 % 80.1 % 78.4 % 78.3 % 81.0 % 78.8 % 79.7 % GAAP subscription and support gross profit $ 936.5 $ 951.4 $ 1,043.4 $ 1,141.6 $ 1,173.5 $ 1,158.1 $ 1,240.0 $ 1,305.9 Share-based compensation-related charges 37.6 40.5 40.0 37.8 38.6 38.0 36.3 36.7 Amortization expense of acquired intangible assets 19.0 19.9 19.3 19.1 22.5 27.7 27.5 29.1 Non-GAAP subscription and support gross profit $ 993.1 $ 1,011.8 $ 1,102.7 $ 1,198.5 $ 1,234.6 $ 1,223.8 $ 1,303.8 $ 1,371.7 Non-GAAP subscription and support gross margin 76.3 % 75.9 % 76.3 % 78.0 % 77.9 % 76.8 % 76.3 % 76.8 % GAAP total gross profit $ 1,188.9 $ 1,246.1 $ 1,446.5 $ 1,405.3 $ 1,476.0 $ 1,471.2 $ 1,615.8 $ 1,584.7 Share-based compensation-related charges 39.4 42.4 41.8 39.6 40.2 39.7 37.5 38.1 Amortization expense of acquired intangible assets 19.0 19.9 19.3 19.1 22.5 27.7 27.5 29.1 Litigation-related charges(1) 1.8 1.8 1.7 1.8 1.8 1.8 1.7 1.8 Non-GAAP total gross profit $ 1,249.1 $ 1,310.2 $ 1,509.3 $ 1,465.8 $ 1,540.5 $ 1,540.4 $ 1,682.5 $ 1,653.7 Non-GAAP gross margin 75.5 % 76.1 % 77.3 % 78.0 % 78.0 % 77.6 % 76.8 % 77.3 % GAAP research and development expense $ 404.1 $ 413.7 $ 414.4 $ 409.5 $ 447.9 $ 457.2 $ 494.8 $ 480.4 Share-based compensation-related charges 134.0 132.3 119.9 123.9 145.9 137.4 144.0 142.4 Non-GAAP research and development expense $ 270.1 $ 281.4 $ 294.5 $ 285.6 $ 302.0 $ 319.8 $ 350.8 $ 338.0 Non-GAAP research and development expense as a percentage of revenue 16.3 % 16.4 % 15.1 % 15.2 % 15.3 % 16.1 % 16.0 % 15.8 % GAAP sales and marketing expense $ 625.5 $ 639.5 $ 664.0 $ 660.5 $ 673.0 $ 718.7 $ 742.3 $ 720.1 Share-based compensation-related charges 92.4 86.7 84.5 83.9 81.6 81.7 76.0 82.5 Amortization expense of acquired intangible assets 5.4 5.4 5.4 5.4 5.4 5.2 6.2 11.6 Non-GAAP sales and marketing expense $ 527.7 $ 547.4 $ 574.1 $ 571.2 $ 586.0 $ 631.8 $ 660.1 $ 626.0 Non-GAAP sales and marketing expense as a percentage of revenue 31.9 % 31.8 % 29.4 % 30.4 % 29.6 % 31.8 % 30.1 % 29.3 % GAAP general and administrative expense $ 119.4 $ 114.2 $ 114.6 $ 120.1 $ 301.5 $ 118.6 $ 140.3 $ 97.7 Share-based compensation-related charges 32.8 32.1 27.9 40.4 29.1 31.2 29.6 52.1 Acquisition-related costs(2) 12.1 7.4 — — 7.3 2.8 3.5 15.1 Litigation-related charges(1) — — — — 176.8 3.7 23.9 (43.0) Non-GAAP general and administrative expense $ 74.5 $ 74.7 $ 86.7 $ 79.7 $ 88.3 $ 80.9 $ 83.3 $ 73.5 Non-GAAP general and administrative expense as a percentage of revenue 4.5 % 4.3 % 4.4 % 4.2 % 4.5 % 4.1 % 3.8 % 3.4 % (1) Consists of the amortization of intellectual property licenses and covenant not to sue. Also includes a legal contingency charge (credit) in Q2'24 through Q1'25, and a litigation settlement charge in Q4'24. (2) Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, change in fair value of contingent consideration liability, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies. Palo Alto Networks, Inc. GAAP to Non-GAAP Reconciliations and Disaggregation of Revenue by Type - Fiscal Quarters (In millions, except percentages and per share amounts) 4

• 5. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 GAAP total operating expense $ 1,149.0 $ 1,167.4 $ 1,193.0 $ 1,190.1 $ 1,422.4 $ 1,294.5 $ 1,377.4 $ 1,298.2 Share-based compensation-related charges 259.2 251.1 232.3 248.2 256.6 250.3 249.6 277.0 Acquisition-related costs(1) 12.1 7.4 — — 7.3 2.8 3.5 15.1 Amortization expense of acquired intangible assets 5.4 5.4 5.4 5.4 5.4 5.2 6.2 11.6 Litigation-related charges(2) — — — — 176.8 3.7 23.9 (43.0) Non-GAAP total operating expense $ 872.3 $ 903.5 $ 955.3 $ 936.5 $ 976.3 $ 1,032.5 $ 1,094.2 $ 1,037.5 Non-GAAP total operating expense as a percentage of revenue 52.7 % 52.5 % 48.9 % 49.8 % 49.4 % 52.0 % 49.9 % 48.5 % GAAP operating income $ 39.9 $ 78.7 $ 253.5 $ 215.2 $ 53.6 $ 176.7 $ 238.4 $ 286.5 Share-based compensation-related charges 298.6 293.5 274.1 287.8 296.8 290.0 287.1 315.1 Acquisition-related costs(1) 12.1 7.4 — — 7.3 2.8 3.5 15.1 Amortization expense of acquired intangible assets 24.4 25.3 24.7 24.5 27.9 32.9 33.7 40.7 Litigation-related charges(2) 1.8 1.8 1.7 1.8 178.6 5.5 25.6 (41.2) Non-GAAP operating income $ 376.8 $ 406.7 $ 554.0 $ 529.3 $ 564.2 $ 507.9 $ 588.3 $ 616.2 Non-GAAP operating margin 22.8 % 23.6 % 28.4 % 28.2 % 28.6 % 25.6 % 26.9 % 28.8 % GAAP interest expense $ (6.9) $ (7.8) $ (5.7) $ (2.9) $ (2.8) $ (2.3) $ (0.3) $ (1.2) Non-cash charges related to convertible notes(3) 1.7 1.8 1.5 1.0 1.1 0.8 0.6 0.5 Non-GAAP interest expense $ (5.2) $ (6.0) $ (4.2) $ (1.9) $ (1.7) $ (1.5) $ 0.3 $ (0.7) Non-GAAP interest expense as a percentage of revenue (0.3) % (0.3) % (0.2) % (0.1) % (0.1) % (0.1) % 0.0 % 0.0 % GAAP other income, net $ 51.4 $ 60.1 $ 68.7 $ 70.3 $ 84.7 $ 76.8 $ 80.9 $ 83.3 Foreign currency loss associated with non-GAAP adjustments 2.3 — — — — — — — Non-GAAP other income, net $ 53.7 $ 60.1 $ 68.7 $ 70.3 $ 84.7 $ 76.8 $ 80.9 $ 83.3 Non-GAAP other income, net as a percentage of revenue 3.2 % 3.5 % 3.5 % 3.7 % 4.3 % 3.9 % 3.7 % 3.9 % GAAP income before income taxes $ 84.4 $ 131.0 $ 316.5 $ 282.6 $ 135.5 $ 251.2 $ 319.0 $ 368.6 Share-based compensation-related charges 298.6 293.5 274.1 287.8 296.8 290.0 287.1 315.1 Acquisition-related costs(1) 12.1 7.4 — — 7.3 2.8 3.5 15.1 Amortization expense of acquired intangible assets 24.4 25.3 24.7 24.5 27.9 32.9 33.7 40.7 Litigation-related charges(2) 1.8 1.8 1.7 1.8 178.6 5.5 25.6 (41.2) Non-cash charges related to convertible notes(3) 1.7 1.8 1.5 1.0 1.1 0.8 0.6 0.5 Foreign currency loss associated with non-GAAP adjustments 2.3 — — — — — — — Non-GAAP income before income taxes $ 425.3 $ 460.8 $ 618.5 $ 597.7 $ 647.2 $ 583.2 $ 669.5 $ 698.8 (1) Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, change in fair value of contingent consideration liability, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies. (2) Consists of the amortization of intellectual property licenses and covenant not to sue. Also includes a legal contingency charge (credit) in Q2'24 through Q1'25, and a litigation settlement charge in Q4'24. (3) Consists of non-cash interest expense for amortization of debt issuance costs related to our convertible senior notes. Palo Alto Networks, Inc. GAAP to Non-GAAP Reconciliations and Disaggregation of Revenue by Type - Fiscal Quarters (Continued) (In millions, except percentages and per share amounts) 5

• 6. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 GAAP provision for (benefit from) income taxes $ 0.2 $ 23.2 $ 88.8 $ 88.4 $ (1,611.4) $ (27.6) $ (38.7) $ 17.9 Income tax and other tax adjustments(1) 93.4 78.2 47.2 43.0 1,753.9 155.9 186.0 136.0 Non-GAAP provision for income taxes $ 93.6 $ 101.4 $ 136.0 $ 131.4 $ 142.5 $ 128.3 $ 147.3 $ 153.9 Non-GAAP effective tax rate 22.0 % 22.0 % 22.0 % 22.0 % 22.0 % 22.0 % 22.0 % 22.0 % GAAP net income $ 84.2 $ 107.8 $ 227.7 $ 194.2 $ 1,746.9 $ 278.8 $ 357.7 $ 350.7 Share-based compensation-related charges 298.6 293.5 274.1 287.8 296.8 290.0 287.1 315.1 Acquisition-related costs(2) 12.1 7.4 — — 7.3 2.8 3.5 15.1 Amortization expense of acquired intangible assets 24.4 25.3 24.7 24.5 27.9 32.9 33.7 40.7 Litigation-related charges(3) 1.8 1.8 1.7 1.8 178.6 5.5 25.6 (41.2) Non-cash charges related to convertible notes(4) 1.7 1.8 1.5 1.0 1.1 0.8 0.6 0.5 Foreign currency loss associated with non-GAAP adjustments 2.3 — — — — — — — Income tax and other tax adjustments(1) (93.4) (78.2) (47.2) (43.0) (1,753.9) (155.9) (186.0) (136.0) Non-GAAP net income $ 331.7 $ 359.4 $ 482.5 $ 466.3 $ 504.7 $ 454.9 $ 522.2 $ 544.9 GAAP net income per share, diluted $ 0.25 $ 0.31 $ 0.64 $ 0.56 $ 4.89 $ 0.79 $ 1.01 $ 0.99 Share-based compensation-related charges 0.94 0.91 0.86 0.86 0.88 0.85 0.85 0.92 Acquisition-related costs(2) 0.04 0.02 0.00 0.00 0.02 0.01 0.01 0.04 Amortization expense of acquired intangible assets 0.07 0.07 0.07 0.07 0.08 0.09 0.10 0.11 Litigation-related charges(3) 0.01 0.01 0.00 0.01 0.50 0.02 0.07 (0.12) Non-cash charges related to convertible notes(4) 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 Foreign currency loss associated with non-GAAP adjustments 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Income tax and other tax adjustments(1) (0.28) (0.23) (0.13) (0.12) (4.91) (0.44) (0.53) (0.38) Non-GAAP net income per share, diluted $ 1.05 $ 1.10 $ 1.44 $ 1.38 $ 1.46 $ 1.32 $ 1.51 $ 1.56 GAAP weighted-average shares used to compute net income per share, diluted 331.6 344.7 354.5 349.8 357.5 354.6 353.9 354.5 Weighted-average anti-dilutive impact of note hedge agreements (15.2) (19.3) (19.3) (11.6) (13.0) (9.5) (7.4) (5.9) Non-GAAP weighted-average shares used to compute net income per share, diluted 316.4 325.4 335.2 338.2 344.5 345.1 346.5 348.6 (1) Consists of income tax adjustments related to our long-term non-GAAP effective tax rate of 22%. In Q2'23, it included a tax benefit from a release of tax reserves related to uncertain tax positions resulting from a tax settlement. In Q2'24 through Q4'24, it included a tax benefit from a release of our valuation allowance on U.S. federal, U.S. states other than California, and United Kingdom deferred tax assets. (2) Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, change in fair value of contingent consideration liability, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies. (3) Consists of the amortization of intellectual property licenses and covenant not to sue. Also includes a legal contingency charge (credit) in Q2'24 through Q1'25, and a litigation settlement charge in Q4'24. (4) Consists of non-cash interest expense for amortization of debt issuance costs related to our convertible senior notes. Palo Alto Networks, Inc. GAAP to Non-GAAP Reconciliations and Disaggregation of Revenue by Type - Fiscal Quarters (Continued) (In millions, except percentages and per share amounts) 6

• 7. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Net cash provided by operating activities $ 694.6 $ 432.1 $ 414.1 $ 1,526.0 $ 690.0 $ 528.9 $ 512.7 $ 1,509.6 Less: purchases of property, equipment, and other assets 38.3 31.2 37.2 36.8 35.2 37.4 47.4 44.1 Free cash flow (non-GAAP) $ 656.3 $ 400.9 $ 376.9 $ 1,489.2 $ 654.8 $ 491.5 $ 465.3 $ 1,465.5 Add: cash payment related to tax settlement 28.9 — 10.9 — — — — — Add: litigation-related payment(1) — — — — — — 20.0 — Adjusted free cash flow (non-GAAP) $ 685.2 $ 400.9 $ 387.8 $ 1,489.2 $ 654.8 $ 491.5 $ 485.3 $ 1,465.5 Net cash provided by (used in) investing activities $ (1,164.5) $ 87.9 $ 362.6 $ (129.0) $ (1,325.5) $ 113.1 $ (168.5) $ (543.8) Net cash provided by (used in) financing activities $ (250.8) $ 128.2 $ (1,634.8) $ (41.8) $ (72.6) $ (1,049.4) $ (179.3) $ (219.7) Free cash flow margin (non-GAAP) 39.7 % 23.3 % 19.3 % 79.3 % 33.2 % 24.8 % 21.3 % 68.5 % Adjusted free cash flow margin (non-GAAP) 41.4 % 23.3 % 19.9 % 79.3 % 33.2 % 24.8 % 22.2 % 68.5 % Disaggregation of Revenue by Type Revenue: Product $ 352.9 $ 388.1 $ 507.4 $ 341.1 $ 390.7 $ 391.0 $ 480.5 $ 353.8 Subscription and support Subscription 815.4 838.1 917.9 988.3 1,027.1 1,045.6 1,127.5 1,191.8 Support 486.8 494.7 528.0 548.7 557.3 548.2 581.5 593.2 Total subscription and support 1,302.2 1,332.8 1,445.9 1,537.0 1,584.4 1,593.8 1,709.0 1,785.0 Total revenue $ 1,655.1 $ 1,720.9 $ 1,953.3 $ 1,878.1 $ 1,975.1 $ 1,984.8 $ 2,189.5 $ 2,138.8 (1) Consists of a one-time payment in Q4'24 to settle a litigation-related matter. Palo Alto Networks, Inc. GAAP to Non-GAAP Reconciliations and Disaggregation of Revenue by Type - Fiscal Quarters (Continued) (In millions, except percentages and per share amounts) 7

• 8. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Next-Generation Security Annualized Recurring Revenue(1) $ 2.33 $ 2.57 $ 2.95 $ 3.23 $ 3.49 $ 3.79 $ 4.22 $ 4.52 Next-Generation Security Annualized Recurring Revenue year-over-year percentage increase 63 % 60 % 56 % 53 % 50 % 47 % 43 % 40 % Remaining performance obligations $ 8.8 $ 9.2 $ 10.6 $ 10.4 $ 10.8 $ 11.3 $ 12.7 $ 12.6 Remaining performance obligations year-overyear percentage increase 39 % 35 % 30 % 26 % 22 % 23 % 20 % 20 % (1) Our Next-Generation Security Annualized Recurring Revenue ("NGS ARR") represents the annualized allocated revenue of all active contracts as of the final day of the reporting period for Prisma and Cortex offerings inclusive of the VM-Series and related services, and certain cloud-delivered security services. Beginning Q1'25, NGS ARR includes revenue attributable to QRadar software as a service contracts that we recently acquired from International Business Machines Corporation. Palo Alto Networks, Inc. Other Key Metrics - Fiscal Quarters (In billions, except percentages) 8

• 9. Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Assets Current assets: Cash and cash equivalents $ 1,346.3 $ 1,992.9 $ 1,135.3 $ 2,491.4 $ 1,782.5 $ 1,373.7 $ 1,535.2 $ 2,282.8 Short-term investments 2,000.6 1,965.3 1,254.7 1,402.4 1,588.5 1,516.7 1,043.6 1,108.2 Accounts receivable, net 1,278.1 1,443.6 2,463.2 1,413.0 1,896.3 1,715.4 2,618.6 1,132.9 Short-term financing receivables, net 171.8 245.2 388.8 445.9 445.5 572.3 725.9 805.1 Short-term deferred contract costs 313.4 317.3 339.2 328.7 328.0 337.0 369.0 367.6 Prepaid expenses and other current assets 295.6 449.3 466.8 396.2 405.9 403.7 557.4 546.1 Total current assets 5,405.8 6,413.6 6,048.0 6,477.6 6,446.7 5,918.8 6,849.7 6,242.7 Property and equipment, net 344.7 341.7 354.5 352.6 352.3 350.3 361.1 361.0 Operating lease right-of-use assets 251.1 248.3 263.3 274.3 355.8 369.7 385.9 389.0 Long-term investments 2,820.6 2,709.8 3,047.9 2,988.9 3,619.6 3,504.4 4,173.2 4,119.7 Long-term financing receivables, net 218.1 390.4 653.3 639.8 639.9 882.5 1,182.1 1,092.2 Long-term deferred contract costs 511.3 503.6 547.1 515.4 504.6 511.2 562.0 531.9 Goodwill 2,912.3 2,926.8 2,926.8 2,926.8 3,372.7 3,372.7 3,350.1 4,050.8 Intangible assets, net 361.7 340.6 315.4 290.5 440.1 407.9 374.9 809.6 Deferred tax assets 19.5 19.8 23.1 25.4 2,234.3 2,291.9 2,399.0 2,397.5 Other assets 318.3 275.9 321.7 317.2 326.0 321.4 352.9 380.2 Total assets $ 13,163.4 $ 14,170.5 $ 14,501.1 $ 14,808.5 $ 18,292.0 $ 17,930.8 $ 19,990.9 $ 20,374.6 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 128.3 $ 91.6 $ 132.3 $ 131.8 $ 178.8 $ 108.9 $ 116.3 $ 211.6 Accrued compensation 395.1 344.7 548.3 331.4 452.6 385.9 554.7 354.5 Accrued and other liabilities 328.9 376.1 390.8 371.5 394.2 412.6 506.7 683.1 Deferred revenue 3,942.5 4,146.7 4,674.6 4,732.0 4,918.1 5,014.9 5,541.1 5,507.7 Convertible senior notes, net 3,680.3 3,682.1 1,991.5 1,946.7 1,821.8 1,162.5 963.9 645.8 Total current liabilities 8,475.1 8,641.2 7,737.5 7,513.4 7,765.5 7,084.8 7,682.7 7,402.7 Long-term deferred revenue 3,611.5 3,942.9 4,621.8 4,710.8 4,900.3 5,152.7 5,939.4 5,585.9 Deferred tax liabilities 14.5 17.6 28.1 30.1 588.5 503.0 387.7 250.8 Long-term operating lease liabilities 274.2 264.5 279.2 275.8 362.7 369.8 380.5 379.6 Other long-term liabilities 59.1 71.9 86.1 107.9 317.8 352.7 430.9 843.8 Total liabilities 12,434.4 12,938.1 12,752.7 12,638.0 13,934.8 13,463.0 14,821.2 14,462.8 Stockholders’ equity: Preferred stock — — — — — — — — Common stock and additional paid-in capital 2,303.0 2,708.2 3,019.0 3,296.7 3,650.0 3,530.7 3,821.1 4,214.9 Accumulated other comprehensive loss (11.1) (20.7) (43.2) (93.0) (6.5) (55.4) (1.6) (4.0) Retained earnings (accumulated deficit) (1,562.9) (1,455.1) (1,227.4) (1,033.2) 713.7 992.5 1,350.2 1,700.9 Total stockholders’ equity 729.0 1,232.4 1,748.4 2,170.5 4,357.2 4,467.8 5,169.7 5,911.8 Total liabilities and stockholders’ equity $ 13,163.4 $ 14,170.5 $ 14,501.1 $ 14,808.5 $ 18,292.0 $ 17,930.8 $ 19,990.9 $ 20,374.6 Palo Alto Networks, Inc. Condensed Consolidated Balance Sheets - Fiscal Quarters (In millions) 9

• 10. Cash flows from operating activities Net income $ 84.2 $ 107.8 $ 227.7 $ 194.2 $ 1,746.9 $ 278.8 $ 357.7 $ 350.7 Adjustments to reconcile net income to net cash provided by operating activities: Share-based compensation for equity-based awards 283.3 271.0 254.2 271.0 272.0 263.5 268.9 294.3 Deferred income taxes (0.1) 2.8 7.2 (0.3) (1,691.0) (127.0) (215.4) (137.4) Depreciation and amortization 69.9 72.3 69.3 64.3 68.6 74.3 76.1 83.9 Amortization of deferred contract costs 99.0 101.4 116.0 105.5 108.9 110.3 121.3 110.4 Amortization of debt issuance costs 1.7 1.8 1.4 1.0 1.1 0.8 0.6 0.5 Change in fair value of contingent consideration liability — — — — — — — 6.3 Reduction of operating lease right-of-use assets 12.5 12.1 13.2 12.4 13.7 14.6 14.6 16.0 Amortization of investment premiums, net of accretion of purchase discounts (16.0) (20.1) (17.8) (14.7) (16.2) (15.6) (13.6) (15.0) Changes in operating assets and liabilities, net of effects of acquisitions: Accounts receivable, net (39.8) (165.3) (1,019.6) 1,050.2 (482.2) 180.9 (903.2) 1,485.7 Financing receivables, net (74.1) (245.7) (406.5) (43.6) 0.3 (369.4) (453.2) 10.7 Deferred contract costs (92.8) (97.6) (181.4) (63.3) (96.0) (125.9) (204.1) (78.9) Prepaid expenses and other assets (49.7) (91.0) (101.2) 54.0 (8.1) 1.3 (181.3) (3.6) Accounts payable 1.7 (37.0) 37.3 (0.4) 47.7 (67.8) 5.5 96.8 Accrued compensation 124.0 (50.9) 203.6 (216.9) 118.6 (66.7) 168.8 (200.2) Accrued and other liabilities (83.2) 35.2 3.9 (33.8) 233.6 27.6 157.1 (94.0) Deferred revenue 374.0 535.3 1,206.8 146.4 372.1 349.2 1,312.9 (416.6) Net cash provided by operating activities 694.6 432.1 414.1 1,526.0 690.0 528.9 512.7 1,509.6 Cash flows from investing activities Purchases of investments (1,606.5) (742.1) (999.0) (854.7) (1,156.7) (475.1) (1,064.8) (660.0) Proceeds from sales of investments 14.6 375.4 90.9 304.6 126.6 69.6 455.4 291.3 Proceeds from maturities of investments 651.3 504.7 1,307.9 457.9 350.4 556.0 488.3 369.0 Business acquisitions, net of cash and restricted cash acquired (185.6) (18.9) — — (610.6) — — (500.0) Purchases of property, equipment, and other assets (38.3) (31.2) (37.2) (36.8) (35.2) (37.4) (47.4) (44.1) Net cash provided by (used in) investing activities (1,164.5) 87.9 362.6 (129.0) (1,325.5) 113.1 (168.5) (543.8) Cash flows from financing activities Repayments of convertible senior notes — — (1,692.0) (46.0) (126.3) (661.8) (199.6) (319.0) Repurchases of common stock (250.0) — — (66.7) — (500.0) — — Proceeds from sales of shares through employee equity incentive plans 0.7 130.3 60.1 86.4 57.5 115.8 24.2 120.7 Payments for taxes related to net share settlement of equity awards (1.5) (2.1) (2.9) (15.5) (3.8) (3.4) (3.9) (21.4) Net cash provided by (used in) financing activities (250.8) 128.2 (1,634.8) (41.8) (72.6) (1,049.4) (179.3) (219.7) Net increase (decrease) in cash, cash equivalents, and restricted cash (720.7) 648.2 (858.1) 1,355.2 (708.1) (407.4) 164.9 746.1 Cash, cash equivalents, and restricted cash - beginning of period 2,072.8 1,352.1 2,000.3 1,142.2 2,497.4 1,789.3 1,381.9 1,546.8 Cash, cash equivalents, and restricted cash - end of period $ 1,352.1 $ 2,000.3 $ 1,142.2 $ 2,497.4 $ 1,789.3 $ 1,381.9 $ 1,546.8 $ 2,292.9 Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets Cash and cash equivalents $ 1,346.3 $ 1,992.9 $ 1,135.3 $ 2,491.4 $ 1,782.5 $ 1,373.7 $ 1,535.2 $ 2,282.8 Restricted cash included in prepaid expenses and other current assets 5.8 7.4 6.9 6.0 6.3 8.2 11.6 10.1 Restricted cash included in other assets — — — — 0.5 — — — Total cash, cash equivalents, and restricted cash $ 1,352.1 $ 2,000.3 $ 1,142.2 $ 2,497.4 $ 1,789.3 $ 1,381.9 $ 1,546.8 $ 2,292.9 Q223 Q323 Q423 Q124 Q224 Q324 Q424 Q125 Palo Alto Networks, Inc. Condensed Consolidated Statements of Cash Flows - Fiscal Quarters (In millions) 10