Palo Alto Networks’ net financing receivables fell about 10.5% to $1.536 billion by July 31, 2026, from $1.717 billion a year earlier, but balances in its weakest internal risk ratings, 7–10, rose to $43 million from $18 million.
The 7–10 band accounted for about 2.8% of financing receivables at amortized cost before credit-loss allowances, compared with 1.0% a year earlier. Palo Alto reported that past-due financing amounts were not material at either year-end; the ratings indicate assessed risk, not that the $43 million will be lost.
Palo Alto generally offers payment terms of two to five years and does not require collateral. It sold $54 million of financing receivables during fiscal 2026, versus $38 million a year earlier, so the lower balance can reflect sales as well as customer payments and does not by itself measure collection performance.
