Palo Alto Networks reported $21.2B of remaining performance obligations at 31 Jul 2026, up 34% from a year earlier and up 15% from the previous quarter. That is 1.8 years of trailing revenue already under contract. Book-to-bill last quarter: 1.82.
Net new backlog added in the latest quarter: $2.80B.
Over the last twelve months it turned about 70% of its opening backlog into revenue (12-month conversion).
44% of the backlog is due within the next twelve months.
Customer prepayments (contract liabilities) cover 36.5% of the backlog.
Twelve-month book-to-bill: 1.47, i.e. 1.47 of new orders for every 1 of revenue recognised.
Backlog growth minus revenue growth: +10 points — orders are running ahead of revenue.
By backlog size it ranks 43rd among US filers the cockpit tracks.
Palo Alto Networks backlog history
Remaining performance obligations at each quarter end (bars) against trailing twelve-month revenue (line).
Amounts in USD. Source: SEC XBRL filings.
Quarter end
Backlog (RPO)
TTM revenue
Coverage
Customer prepayments
31 Jul 2026
$21.2B
$11.5B
1.8 yrs
$7.75B
30 Apr 2026
$18.4B
$10.6B
1.7 yrs
$7.11B
31 Jan 2026
$16.0B
$9.89B
1.6 yrs
$6.25B
31 Oct 2025
$15.5B
$9.56B
1.6 yrs
$6.13B
31 Jul 2025
$15.8B
$9.22B
1.7 yrs
$6.30B
30 Apr 2025
$13.5B
$8.87B
1.5 yrs
$5.76B
31 Jan 2025
$13.0B
$8.57B
1.5 yrs
$5.60B
31 Oct 2024
$12.6B
$8.29B
1.5 yrs
$5.51B
31 Jul 2024
$12.7B
$8.03B
1.6 yrs
$5.54B
30 Apr 2024
$11.3B
$7.79B
1.5 yrs
$5.01B
31 Jan 2024
$10.8B
$7.53B
1.4 yrs
$4.92B
31 Oct 2023
$10.4B
$7.21B
1.4 yrs
$4.73B
Questions
What is Palo Alto Networks's backlog?
Palo Alto Networks reported $21.2B of remaining performance obligations at 31 Jul 2026, up 34% from a year earlier and up 15% from the previous quarter. That is 1.8 years of trailing revenue already under contract. Book-to-bill last quarter: 1.82.
How fast does Palo Alto Networks's backlog turn into revenue?
Over the last twelve months Palo Alto Networks recognised revenue equal to about 70% of the backlog it started each quarter with.
About these numbers
Remaining performance obligations (RPO) are revenue a company has contracted but not yet recognised, as reported in its SEC filings (XBRL tag RevenueRemainingPerformanceObligation). Coverage = backlog ÷ trailing twelve-month revenue. Book-to-bill = (change in backlog + revenue) ÷ revenue. Conversion = revenue recognised ÷ the backlog at the start of each quarter, summed over four quarters. Counterparty values come from company filings and releases.