CrowdStrike vs Palo Alto Networks Overview

Two cybersecurity leaders with different origins: CrowdStrike built its reputation in cloud-native endpoint protection, while Palo Alto Networks expanded from network firewalls into a comprehensive security platform.

Metric CrowdStrike (CRWD) Palo Alto Networks (PANW)
Sector Cybersecurity Cybersecurity
Market Cap $85B $120B
Revenue N/A N/A
Net Income $0.30B $1.3B

How Does CrowdStrike Make Money?

CrowdStrike (CRWD) operates in the Cybersecurity sector with a market cap of $85B. For a full breakdown of CrowdStrike’s revenue sources, see the CrowdStrike revenue breakdown.

CrowdStrike Revenue Breakdown

Revenue Stream FY2025 (Jan) FY2024 (Jan) YoY Growth
Subscription Revenue $3.76B $2.99B +25.8%
Professional Services $0.19B $0.16B +18.8%
Total Revenue $3.95B $3.15B +25.4%

How Does Palo Alto Networks Make Money?

Palo Alto Networks (PANW) operates in the Cybersecurity sector with a market cap of $120B. For a full breakdown of Palo Alto Networks’s revenue sources, see the Palo Alto Networks revenue breakdown.

Palo Alto Networks Revenue Breakdown

Revenue Source FY2024 (Jul) FY2023 (Jul) YoY Growth
Subscription Revenue $4.2B $3.5B +20.0%
Support Revenue $1.8B $1.7B +5.9%
Product Revenue $1.6B $1.6B +0.0%
Total Revenue $8.0B $7.0B +14.3%

CrowdStrike vs Palo Alto Networks Profitability

CrowdStrike: Yes, CrowdStrike is profitable. The company reported net income of $0.30B on total revenue of $3.95B. With an operating margin of 9.1%, CrowdStrike demonstrates solid profitability for the cybersecurity sector. The gross margin of 73.2% reflects CrowdStrike’s pricing power and cost structure.

Palo Alto Networks: Yes, Palo Alto Networks is profitable. The company reported net income of $1.3B on total revenue of $8.0B. With an operating margin of 11.3%, Palo Alto Networks demonstrates solid profitability for the cybersecurity sector. The gross margin of 68.8% reflects Palo Alto Networks’ pricing power and cost structure.

Key Financial Metrics Comparison

CrowdStrike Key Metrics

  • Gross Margin: 73.2% — Strong SaaS margins reflecting the cloud-native delivery model. Gross margin has been steadily expanding as the platform scales.
  • Operating Margin: 9.1% — CrowdStrike is now GAAP profitable, though margins are compressed by heavy investment in new modules and go-to-market expansion.
  • Subscription Gross Margin: 79.4% — The core subscription business is highly efficient. Platform costs (cloud infrastructure) have been declining as a percentage of revenue.
  • Free Cash Flow Margin: 32% — CrowdStrike generates more than $1.2B in annual free cash flow, demonstrating the cash efficiency of the land-and-expand SaaS model.

Palo Alto Networks Key Metrics

  • Gross Margin: 68.8% — Strong and improving as the revenue mix shifts toward higher-margin subscriptions and away from hardware.
  • Operating Margin: 11.3% (GAAP) — Expanding. Non-GAAP operating margin was approximately 27%, with the gap driven by significant stock-based compensation (~$1.4B annually).
  • Revenue Growth: +14.3% — Steady double-digit growth. The company temporarily sacrificed revenue growth in FY2024 by offering free trials to accelerate platformization, which will convert to paid subscriptions over time.
  • Annual Recurring Revenue (ARR): $4.2B — Next-generation security ARR (Prisma and Cortex) grew 43%, demonstrating the traction of the platform strategy.
  • Remaining Performance Obligations: $12.7B — Up 22%, showing strong future revenue locked in through multi-year contracts.

Which Company is a Better Investment?

Both CrowdStrike and Palo Alto Networks are significant players in the Cybersecurity space. Investors should consider each company’s revenue growth trajectory, profitability, competitive positioning, and exposure to secular trends before making investment decisions. Review the full CrowdStrike revenue breakdown and Palo Alto Networks revenue breakdown for detailed analysis.

Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.