Palo Alto Networks Inc at UBS Global Technology and AI Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Roger Boyd - UBS AG - Analyst : Perfect. And maybe just to translate it back to the numbers, you took your long-term fiscal 30 NGS ARR target from $15 billion to $20 billion. Obviously big numbers here. How much of that was attributed to Cyber or Chronosphere? I think there was also an organic expansion component to that. And even when you look at $15 billion of organic business, what gives you the confidence in that number? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 11:55PM, PANW.OQ - Palo Alto Networks Inc at UBS Global Technology and AI Conference

Question: Roger Boyd - UBS AG - Analyst : Cool. Maybe to touch on Identity, you mentioned this earlier, but just greater confidence in that acquisition having spent a few time -- spent a few months with it. What's -- can you expand on that? And when you think about kind of the three pillars of the deal, it was bringing TAM to more users internally. It was being able to include Identity within your broader platformization sale, and then this third idea of securing AI agents? Like how have each of those pillars kind of expanded after spending some time with --

Question: Roger Boyd - UBS AG - Analyst : And then just on Chronosphere, I think a lot of investors may be a little more surprised by that acquisition relative to CyberArk. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 11:55PM, PANW.OQ - Palo Alto Networks Inc at UBS Global Technology and AI Conference

Question: Roger Boyd - UBS AG - Analyst : Yeah. In terms of the rationale, you touched a bit upon this, but in terms of a data pipeline product versus the organic TAM that they have in their installed base versus the idea of bringing that into platformization, how do you balance those pillars of acquisition?

Question: Roger Boyd - UBS AG - Analyst : Yeah. Just on the Chronosphere customer base, you mentioned two of the top five LLM providers. It's been pretty well reported that the largest LLM provider is a customer.

Question: Roger Boyd - UBS AG - Analyst : Yes, exactly. I mean, to your point, there's $1 billion, $1.5 billion of compute spend -- $1 trillion of compute spend that's coming online over the next 5 to 10 years. So how do you think about that market for observability expanding with AI? And how do you think about selling into that ecosystem? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 11:55PM, PANW.OQ - Palo Alto Networks Inc at UBS Global Technology and AI Conference

Question: Roger Boyd - UBS AG - Analyst : Okay. Maybe last question on the two recent acquisitions or pending acquisitions. I've gotten this question from investors, but how do you get comfortable integrating, managing fairly large integrations over the next kind of year, year and a half? And I know you mentioned Lee's recently promoted and spearheading a lot of this, but what does that look like internally?

Question: Roger Boyd - UBS AG - Analyst : Great. Okay. Maybe shifting over to Bitcoin --?

Question: Roger Boyd - UBS AG - Analyst : Okay. Shifting to the core business. SASE, you've got $1 billion, $1.3 billion of revenue, growing 34%. I think you're now in a third of the Fortune 500. The growth there has been pretty steady. What's going right there? And competitively, have you seen any changes in the market? There's obviously more vendors that are talking about that.

Question: Roger Boyd - UBS AG - Analyst : It's going well.

Question: Roger Boyd - UBS AG - Analyst : You mentioned feeling like you have technological advantages in certain areas. And it seems like Prisma Access Browser has been one of those areas. It's been a pretty material element to new seat count growth in SASE. How important is that? How differentiated is it? And like big picture, the idea of like browser wars, AI browsers, how do you think about enterprises trying to secure AI through a browser?

Question: Roger Boyd - UBS AG - Analyst : That's a good pitch. All right.

Question: Roger Boyd - UBS AG - Analyst : All right. I wanted to switch gears to software firewall. You called it a hidden gem last earnings call. I don't think it's that hidden. ARR is growing 20%-plus. You've got pretty material acceleration in product revenue. Can you talk about what's underpinning that strength and we'll go from there?

Question: Roger Boyd - UBS AG - Analyst : Yeah. I want to double-click on that. And the concept of an AI firewall, you introduced Prisma AIRS earlier this year. You have model scanning, AI posture management, red teaming. Should we think about those as kind of attached services to an AI firewall? Or does it get sold separately? How does that work?

Question: Roger Boyd - UBS AG - Analyst : Cool. Maybe to close, we're at the AI conference. There's been a lot of talk about potential AI bubble out there. I want to leverage your purview, your lens into the broader technology landscape. What's your opinion there? What do you think investors are potentially missing? And how do you think about security potentially enabling that or not enabling that?

Question: Roger Boyd - UBS AG - Analyst : Awesome. We'll wrap it there.