Analyzing Cost of Revenue: Palo Alto Networks, Inc. and Gen Digital Inc.

Analyzing Cost of Revenue: A Tale of Two Tech Giants

In the ever-evolving landscape of cybersecurity and digital solutions, Palo Alto Networks, Inc. and Gen Digital Inc. have emerged as key players. Over the past decade, these companies have shown contrasting trends in their cost of revenue, a critical metric that reflects the direct costs attributable to the production of goods sold by a company.

From 2014 to 2024, Palo Alto Networks has seen a staggering increase of over 1,200% in its cost of revenue, peaking at approximately $2.06 billion in 2024. This growth underscores the company's aggressive expansion and investment in cutting-edge cybersecurity solutions. In contrast, Gen Digital Inc. experienced a more volatile journey, with a notable dip in 2020, but has since rebounded to a 2024 cost of revenue of around $731 million, reflecting a strategic recalibration.

These trends highlight the dynamic nature of the tech industry, where strategic investments and market positioning play pivotal roles in shaping financial outcomes.