Financing Receivables (Tables)

6 Months Ended

Jan. 31, 2026

Schedule of Short and Long-term Financing Receivables

The following table summarizes our short-term and long-term financing receivables as of January 31, 2026 and July 31, 2025 (in millions):


	January 31, 2026		July 31, 2025
Short-term financing receivables, gross	$	754	$	806
Unearned income	(75)		(86)
Allowance for credit losses	(7)		(5)
Short-term financing receivables, net	$	672	$	715
Long-term financing receivables, gross	$	937	$	1,079
Unearned income	(58)		(69)
Allowance for credit losses	(9)		(8)
Long-term financing receivables, net	$	870	$	1,002

Schedule of Financing Receivable Credit Quality Indicators

The following table presents amortized cost basis of our financing receivables categorized by internal risk rating and year of origination (in millions):


Internal Risk Rating(1)	January 31, 2026												July 31, 2025
	Fiscal Year of Origination												Fiscal Year of Origination
	2026		2025		2024		2023		2022		Total		2025		2024		2023		2022		2021		Total
1 to 4	$	36	$	257	$	610	$	156	$	5	$	1,064	$	261	$	732	$	242	$	9	$	18	$	1,262
5 to 6	129		172		169		14		—		484		174		226		50		—		—		450
7 to 10	—		—		3		7		—		10		—		4		14		—		—		18
Amortized cost basis of financing receivables	$	165	$	429	$	782	$	177	$	5	$	1,558	$	435	$	962	$	306	$	9	$	18	$	1,730

(1)Internal risk ratings are categorized as 1 through 10, with the lowest rating representing the highest quality.

Palo Alto Networks Inc 10-Q