Operational Costs Compared: SG&A Analysis of Palo Alto Networks, Inc. and NetApp, Inc.

A Decade of SG&A: Palo Alto Networks vs. NetApp

In the ever-evolving tech landscape, operational efficiency is paramount. Over the past decade, Palo Alto Networks, Inc. and NetApp, Inc. have showcased contrasting trends in their Selling, General, and Administrative (SG&A) expenses. From 2014 to 2024, Palo Alto Networks has seen a staggering 750% increase in SG&A expenses, reflecting its aggressive growth strategy and market expansion. In contrast, NetApp's SG&A expenses have remained relatively stable, with a slight decrease of around 2% over the same period, indicating a focus on cost management and operational stability.

Key Insights

• Palo Alto Networks: From a modest start in 2014, the company’s SG&A expenses have surged, peaking in 2024, highlighting its commitment to scaling operations.
• NetApp: Despite fluctuations, NetApp has maintained a consistent SG&A expense profile, emphasizing efficiency.

This analysis underscores the strategic priorities of these tech giants, offering a window into their operational philosophies.