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PANW Operating Expenses

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In Q2'26, PANW's total operating expenses reached $1.51B USD, comprising $511M in R&D expenses and $1.01B in SG&A expenses, reflecting a slight quarterly decline of 3.3% from Q1'26's $1.56B total, driven primarily by moderated R&D spending amid ongoing investments in innovation. Over the period from Q3'23 to Q2'26, operating expenses exhibited a robust upward trend, growing from $1.17B to $1.51B—a cumulative increase of approximately 29%—with SG&A consistently dominating at 60-70% of the total and showing volatile peaks like $999M in Q1'26, while R&D expenses steadily rose from $414M to $511M before a minor dip, underscoring expanding operational scale in a competitive cybersecurity landscape. This analysis highlights key inflection points, such as the sharp SG&A surge to $974M in Q2'24, followed by stabilization and renewed growth, indicating strategic cost management alongside business expansion.