Palo Alto Networks vs SentinelOne: Revenue, Profit and Business Model
Palo Alto Networks had $11.5B of annual revenue in FY2026 and $307M of net income. SentinelOne had $621.1M of annual revenue in FY2024 and a net loss of $338.7M.
Latest financial snapshot
Palo Alto Networks
- Latest annual revenue
- $11.5B (FY2026)
- Net income
- $307M
- Net margin
- 2.7%
- Revenue growth
- +23.2% a year, FY2017–FY2026
SentinelOne
- Latest annual revenue
- $621.1M (FY2024)
- Net income
- -$338.7M
- Net margin
- -54.5%
- Revenue growth
- +109.5% a year, FY2015–FY2024
Financial summary
Palo Alto Networks
Revenue grew from $1.76 billion in fiscal 2017 to $11.48 billion in fiscal 2026 as the company moved from firewall boxes to subscriptions. GAAP profit has been uneven. The company lost money through fiscal 2022, then earned $440 million in fiscal 2023 and $2.58 billion in fiscal 2024 (a figure lifted by a one-time tax benefit). It earned $1.13 billion in fiscal 2025 and $307 million in fiscal 2026, when CyberArk and Chronosphere acquisition costs produced GAAP net losses of $177 million in Q3 and $282 million in Q4. Cash generation is stronger: fiscal 2026 adjusted free cash flow margin was 38.4%, and management targets 40% by fiscal 2028. Palo Alto Networks, Inc. is the absolute largest multinational cybersecurity company in the world, maintaining a massive market valuation generally exceeding $90 billion.
SentinelOne
SentinelOne's financial profile is characterized by rapid top-line revenue expansion, expanding gross margins, and a clear trajectory toward GAAP profitability. In fiscal year 2024, SentinelOne reported consolidated net revenue of $621.15 million, representing a robust 47% year-over-year increase compared to $422.2 million in FY2023. Annualized Recurring Revenue (ARR) surged 39% to $724.4 million, driven by balanced enterprise new-customer acquisition and net expansion. GAAP gross margins expanded to 73%, while Non-GAAP gross margins reached an impressive 77%, reflecting strong cloud hosting infrastructure optimization. The company maintained exceptional balance sheet liquidity, closing the fiscal year with over $1.1 billion in cash, cash equivalents, and short-term investments, and zero funded corporate debt. With operating cash flow turning positive in late FY2024, SentinelOne is fully funded to execute its long-term AI-driven security expansion without external equity dilution.
Revenue and profit by year
Palo Alto Networks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $11.5B | $307M | 2.7% | +24.5% | Source |
| FY2025 | $9.2B | $1.1B | 12.3% | +14.9% | Source |
| FY2024 | $8B | $2.6B | 32.1% | +16.5% | Source |
| FY2023 | $6.9B | $439.7M | 6.4% | +25.3% | Source |
| FY2022 | $5.5B | -$267M | -4.9% | +29.3% | Source |
| FY2021 | $4.3B | -$498.9M | -11.7% | +24.9% | Source |
| FY2020 | $3.4B | -$267M | -7.8% | +17.5% | Source |
| FY2019 | $2.9B | -$81.9M | -2.8% | +27.6% | Source |
| FY2018 | $2.3B | -$122.2M | -5.4% | +29.0% | Source |
| FY2017 | $1.8B | -$203M | -11.5% | — | Source |
SentinelOne
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $621.1M | -$338.7M | -54.5% | +47.1% | Source |
| FY2023 | $422.2M | -$378.7M | -89.7% | +106.1% | Source |
| FY2022 | $204.8M | -$271.1M | -132.4% | +120.0% | Source |
| FY2021 | $93.1M | -$117.6M | -126.4% | +100.2% | Source |
| FY2020 | $46.5M | -$76M | -163.4% | +87.5% | Source |
| FY2019 | $24.8M | -$35M | -141.1% | +98.4% | Source |
| FY2018 | $12.5M | -$19M | -152.0% | +108.3% | Source |
| FY2017 | $6M | -$10M | -166.7% | +140.0% | Source |
| FY2016 | $2.5M | -$5M | -200.0% | +212.5% | Source |
| FY2015 | $800,000 | -$2M | -250.0% | — | Source |
Where the revenue comes from
Palo Alto Networks
- Subscriptions and SupportLargest
Recurring security subscriptions, support, SASE, cloud security, and Cortex products.
- Product RevenueMaterial
Physical and virtual firewall products and related hardware/software sales.
- ServicesEmbedded
Incident response, advisory, and other security services.
SentinelOne
- Singularity Endpoint Protection & EDR62.0%
Autonomous AI-driven endpoint detection and response, Storyline automated telemetry, and device control.
- Singularity Cloud Security18.0%
Cloud workload protection, Kubernetes runtime agent security, and containerized infrastructure threat mitigation.
- Singularity Identity & Credential Defense12.0%
Active Directory deception, credential protection, and lateral movement defense.
- Singularity Data Lake & Security Operations8.0%
Scalable high-speed log ingestion, automated incident response orchestration, and threat hunting analytics.
Business model and strategy
Palo Alto Networks
How it makes money
Palo Alto Networks makes most of its money from recurring subscriptions and support, with the rest from firewall products. Customers buy hardware and virtual next-generation firewalls and then pay yearly for threat prevention, URL filtering, DNS security and SD-WAN services.
Growth strategy
Since early 2024, Palo Alto has pursued 'platformization'. It offers customers free or discounted periods so they can move off rival tools before their contracts expire, in exchange for long-term commitments to its platforms.
Competitive advantage
Palo Alto's edge is breadth combined with a large installed firewall base. Few vendors can sell network security, SASE, cloud security, SOC automation and identity security under one contract, and the PAN-OS policies that enterprises have built up over years make firewall replacement slow and risky. Telemetry from that base feeds Unit 42 threat research and the AI models in Cortex.
SentinelOne
How it makes money
SentinelOne operates a pure-play cloud Software-as-a-Service (SaaS) subscription business model with high gross margins and predictable annual recurring revenue: (1) Singularity Core, Control, and Complete Subscriptions (~85% of revenue), billed annually on a per-endpoint or per-workload basis, providing multi-tiered endpoint protection, automated EDR investigation, and autonomous ransomware rollback;
Growth strategy
Under CEO Tomer Weingarten, SentinelOne is pursuing four strategic growth imperatives: (1) Scaling Purple AI Adoption: Driving enterprise monetization of Purple AI as an automated security analyst, empowering tier-1 SOC analysts to perform advanced threat hunting and cutting mean time to detect (MTTD) by over 80%;
Competitive advantage
SentinelOne's foundational architectural advantage is its autonomous on-device behavioral AI execution. Unlike traditional cloud-dependent architectures that require constant streaming of raw telemetry to remote data centers for analysis, SentinelOne embeds static and behavioral machine-learning models directly within its local endpoint agent.
Questions about Palo Alto Networks vs SentinelOne
Which company has higher revenue — Palo Alto Networks, Inc. or SentinelOne?
Palo Alto Networks, Inc. had $11.5B (FY2026), while SentinelOne had $621.1M (FY2024). By latest annual revenue, Palo Alto Networks, Inc. is the larger business, with SentinelOne showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Palo Alto Networks, Inc. vs SentinelOne?
Palo Alto Networks, Inc.'s market capitalisation stands at $306.5B, while SentinelOne's is $7.5B. Palo Alto Networks, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to SentinelOne.
How does revenue per employee compare for Palo Alto Networks, Inc. and SentinelOne?
Palo Alto Networks, Inc. has $714k / employee in revenue per employee, while SentinelOne has $259k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Palo Alto Networks, Inc. and SentinelOne make money?
Palo Alto Networks, Inc. and SentinelOne generate revenue in fundamentally different ways. Palo Alto Networks, Inc.: Palo Alto Networks makes most of its money from recurring subscriptions and support, with the rest from firewall products. SentinelOne: SentinelOne operates a pure-play cloud Software-as-a-Service (SaaS) subscription business model with high gross margins and predictable annual recurring revenue: (1) Singularity Core, Control, and Complete Subscriptions (~85% of revenue), billed annually on a per-endpoint or per-workload basis, providing multi-tiered endpoint protection, automated EDR investigation, and autonomous ransomware rollback; (2) Cloud Security and Identity Threat Defense (~10% of revenue), securing containerized Kubernetes workloads, public cloud infrastructure (AWS, Azure, GCP), and enterprise Active Directory credentials via Attivo technology; and (3) Singularity Data Lake and Purple AI (~5% of revenue), which monetizes high-throughput security log ingestion, extended data retention, and generative AI copilot natural language querying for Security Operations Center (SOC) analysts.
Which company is valued higher relative to revenue — Palo Alto Networks, Inc. or SentinelOne?
On a price-to-sales (P/S) basis, Palo Alto Networks, Inc. trades at 26.7x P/S and SentinelOne at 12.1x P/S. Palo Alto Networks, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to SentinelOne. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Palo Alto Networks, Inc. bigger than SentinelOne?
By last reported revenue, Palo Alto Networks, Inc. ($11.5B (FY2026)) is the larger company compared to SentinelOne ($621.1M (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Palo Alto Networks vs SentinelOne overview