Selling, General, and Administrative Costs: Palo Alto Networks, Inc. vs Electronic Arts Inc.

A Tale of Two Giants: SG&A Expenses in the Tech and Gaming Sectors

In the ever-evolving landscape of technology and gaming, two industry titans, Palo Alto Networks, Inc. and Electronic Arts Inc., have showcased intriguing trends in their Selling, General, and Administrative (SG&A) expenses over the past decade. From 2014 to 2024, Palo Alto Networks has seen a staggering increase of over 750% in SG&A costs, reflecting its aggressive growth strategy and expansion in cybersecurity. In contrast, Electronic Arts, a leader in the gaming industry, has maintained a more stable trajectory, with a modest 57% rise in the same period.

By 2024, Palo Alto Networks' SG&A expenses are projected to reach approximately 3.5 billion, nearly double that of Electronic Arts. This divergence highlights the distinct operational strategies and market dynamics faced by these companies. As Palo Alto Networks invests heavily in innovation and market penetration, Electronic Arts focuses on steady growth and brand consolidation.