Palo Alto Networks ECONOMIC

Target: Palo Alto Networks, Inc. (NASDAQ: PANW) Domain: Economic - economic, commercial, investment and supply-chain footprint Research date: 1 October 2026

Palo Alto Networks, Inc. is a Delaware corporation headquartered in Santa Clara, California; its FY2026 Form 10-K states that it was incorporated in March 2005 and commenced operations in April 2005.¹ The same filing says the company has business operations and employees in Israel, that those operations “meaningfully expanded” with the February 2026 CyberArk acquisition, and that Palo Alto Networks intends to continue growing its presence in Israel.¹ Its current Israel careers page describes the Israel R&D centre as its largest outside Silicon Valley, while its locations page lists a Tel Aviv-Yafo office and Israeli sales function.^{2, 3}

Supply Chain & Sourcing Relationships

Palo Alto Networks’ disclosed business is cybersecurity hardware, software, subscriptions and services rather than food or agricultural retail. Its FY2026 10-K states that hardware products are manufactured primarily in the United States while some components are sourced outside the United States.¹ no public evidence identified in the reviewed sources of direct procurement from Mehadrin, Hadiklaim, Galilee Export, Agrexco successors or another named Israeli agricultural exporter; no public evidence identified of seasonal Israeli produce sourcing, white-label Israeli food products, or an Israeli agricultural importer-of-record structure.¹

The economically material Israeli supply-side relationship identified is instead technology acquisition and owned R&D. Palo Alto Networks has repeatedly acquired Israeli cybersecurity businesses and integrated their technology and teams into its platforms, including Cyvera, LightCyber, Secdo, Demisto, Twistlock, PureSec, Bridgecrew, Cider Security, Dig Security, Talon Cyber Security, CyberArk and Koi Security.^{4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15}

Product Origin, Labeling & Regulatory Compliance

The requested agricultural country-of-origin and settlement-produce tests are not naturally applicable to Palo Alto Networks’ cybersecurity products. No public evidence identified in the reviewed sources of Palo Alto Networks selling food or agricultural goods labelled “Produce of Israel,” or of a DEFRA/customs enforcement action concerning settlement-origin produce.¹

No public Palo Alto Networks policy specifically governing the sourcing or labelling of goods from the West Bank, East Jerusalem or Golan Heights was identified in the reviewed corporate and SEC materials.^{1, 3} The retained evidence also does not identify a Palo Alto Networks operating office, manufacturing site or acquired-company facility in an Israeli settlement; current first-party location disclosure identifies Tel Aviv-Yafo.³

Investment, Capital & Financial Exposure

Direct investment and acquisitions

Palo Alto Networks has made sustained direct investment into Israeli cybersecurity businesses. [pre-2020] In April 2014 it completed the acquisition of Tel Aviv-based Cyvera for approximately $200 million; the contemporaneous SEC filing identifies Cyvera Ltd. as an Israeli company and the transaction as an acquisition of its outstanding shares.^{4, 16} [pre-2020] In February 2017 it completed the acquisition of LightCyber for $103.1 million in cash.⁵ [pre-2020] Its FY2018 10-K states that it acquired Israel-based Secdo in April 2018 and that the Cyvera, LightCyber and Secdo acquisitions resulted in an Israeli office and employees.⁶

[pre-2020] Palo Alto Networks completed its Demisto acquisition in March 2019 for approximately $560 million in cash and common stock.⁷ Its FY2019 10-K records completion of the PureSec acquisition in June 2019 and Twistlock in July 2019, with accounting purchase consideration of $36.8 million and $378.1 million respectively.⁸ Contemporary Israeli reporting identifies Demisto, Twistlock and PureSec as part of Palo Alto Networks’ Israeli acquisition sequence.¹⁵

In March 2021 Palo Alto Networks completed the Bridgecrew acquisition for approximately $156 million in cash; Israeli reporting identifies Bridgecrew as Tel Aviv-based.^{9, 15} In November 2022 it agreed to acquire Cider Security for approximately $195 million in cash excluding replacement equity awards, and completed the transaction in December 2022.^{10, 17} In October 2023 Palo Alto Networks announced its intended acquisition of Dig Security, explicitly linking the transaction to continued growth of its Israel footprint; its FY2024 10-K records completion on 5 December 2023 and $255.4 million of purchase consideration.^{11, 18} It announced its intended acquisition of Talon Cyber Security in November 2023 and completed it on 28 December 2023.^{12, 19}

The FY2026 10-K records accounting purchase consideration of $255 million for Dig and $459 million for Talon.¹ These accounting figures are used in preference to higher estimates reported in some transaction-era media coverage.¹

Palo Alto Networks announced an agreement to acquire Israel-incorporated CyberArk in July 2025; the SEC merger filing states that CyberArk would survive as a wholly owned Palo Alto Networks subsidiary.²⁰ Palo Alto Networks completed the acquisition on 11 February 2026, confirmed by both its current corporate press page and CyberArk’s SEC filing.^{21, 22} Palo Alto Networks’ FY2026 10-K records $21.1 billion of accounting purchase consideration.¹

Palo Alto Networks completed its acquisition of Koi Security Ltd. on 14 April 2026. Its April 2026 Form 10-Q and FY2026 10-K both record $231 million of purchase consideration, while the current corporate press page confirms the completion date.^{13, 1, 14} Current Israeli reporting identifies Koi as an Israeli cybersecurity company and includes it in Palo Alto Networks’ Israeli acquisition sequence.¹⁵

Current group structure and Israeli assets

Palo Alto Networks’ FY2026 subsidiary exhibit lists Palo Alto Networks Ltd. and Palo Alto Networks Israel Holdings Ltd. as Israeli subsidiaries.²³ The same exhibit separately lists U.S. entities bearing acquired-company names such as BridgeCrew, Cider Security, Dig Security, Koi Security, LightCyber and Talon, showing that current legal-entity presentation does not preserve every acquisition as a separately named Israeli subsidiary.²³

The FY2026 10-K reports long-lived assets in Israel of $222 million at 31 July 2026, up from $162 million a year earlier.¹ The company also says its Israeli operations meaningfully expanded with CyberArk and that it intends to continue growing them.¹ This is current, post-July/November 2024 evidence of continuing Israeli investment.^{1, 21, 13, 14}

Ownership and financial exposure

The company’s November 2025 proxy statement identifies Vanguard and BlackRock as the disclosed 5% shareholders at that reporting date; named executives and directors shown in the table were individually below 1% except as otherwise stated in the filing.²⁴ The reviewed beneficial-ownership disclosure does not establish an Israeli shareholder or family-office block controlling Palo Alto Networks.²⁴

Palo Alto Networks is not a bank, insurer or asset manager in the reviewed filings. No public evidence identified of the company underwriting Israeli sovereign debt, selling Israel Bonds, providing trade-finance or direct lending to settlement-linked companies, or running a material investment portfolio of Israeli sovereign bonds as a line of business.¹

Operational Presence & Market Activity

Palo Alto Networks currently operates in Israel. Its Israel careers page calls the Israeli R&D centre the company’s largest outside Silicon Valley and says it develops next-generation products including Cortex XSIAM.² Its locations page lists an office at 94a Yigal Alon Street, Tel Aviv-Yafo, and an Israeli sales contact.³ The FY2026 10-K separately says the company leases personnel space in Israel and has business operations and employees there.¹

The company does not publicly break out Israel revenue as a separate country line in the FY2026 10-K. Revenue is reported by broad geographic theater, including EMEA, while Israel is separately identified for long-lived assets.¹ no public evidence identified of a separate Israel-market revenue figure in the reviewed FY2026 filing.¹

No precise current consolidated Israel headcount was identified in the reviewed public sources. The company’s current careers material nevertheless describes Israel as a major R&D hub, and the 10-K says the operation expanded materially with CyberArk.^{2, 1}

Corporate Structure & Foundational Ties

Palo Alto Networks itself was not founded or incorporated in Israel. Its FY2026 10-K says it was incorporated in March 2005 under Delaware law and is headquartered in Santa Clara, California.¹ Its Israeli economic footprint arises from owned subsidiaries, R&D, sales and acquisitions rather than Israeli corporate domicile of the listed parent.^{1, 23, 2, 3}

The current Israeli legal structure includes Palo Alto Networks Ltd. and Palo Alto Networks Israel Holdings Ltd.²³ CyberArk, an Israeli company before the transaction, became a wholly owned Palo Alto Networks subsidiary in February 2026.^{20, 22} Palo Alto Networks’ 10-K identifies Koi Security Ltd. as a 2026 acquisition, while current Israeli reporting identifies Koi as an Israeli cybersecurity company.^{1, 15}

No public evidence identified in the reviewed sources of Israeli state equity ownership in Palo Alto Networks, an Israeli government-appointed director, a golden share, or a charter provision giving the Israeli state structural control over Palo Alto Networks.^{1, 24}

The FY2026 10-K does disclose a direct Israeli fiscal linkage: in March 2026 the Knesset Finance Committee approved an R&D-law regime providing refundable tax credits for qualifying R&D expenditure incurred in Israel from 1 January 2026. Palo Alto Networks states that the impact on FY2026 consolidated financial statements was not material.¹ The reviewed filing does not establish that Palo Alto Networks holds a Preferred Technology Enterprise designation; no such designation is asserted here.¹

Profit Repatriation & Economic Contribution

Palo Alto Networks’ FY2026 financial statements do not disclose Israel-specific revenue or operating profit. They do disclose $222 million of long-lived assets in Israel at 31 July 2026 and a substantial Israeli R&D presence.^{1, 2} Research and development expense across the global group was $2.552 billion in FY2026, but the filing does not allocate that expense specifically to Israel.¹

The clearest disclosed profit/capital-flow item is connected with CyberArk: the FY2026 10-K states that, as part of the acquisition, Palo Alto Networks executed an intercompany transaction to repatriate $3.5 billion of foreign earnings and that its remaining unremitted earnings are indefinitely reinvested.¹ The filing does not disclose subsidiary-by-subsidiary Israeli profit remittance, so no further direction or amount is inferred.¹

The company characterises Israel as strategically important to product development rather than as a separately reported sales market: its careers page calls the Israeli R&D centre its largest outside Silicon Valley, and the Dig acquisition announcement referred to Palo Alto Networks’ longstanding commitment to its Israel team and continued footprint growth.^{2, 11} The FY2026 10-K’s statement that Israeli operations meaningfully expanded through CyberArk provides current confirmation of that economic role.¹

Settlement and occupied-territory checks

Targeted searches of the named settlement/occupation source classes and of Palo Alto Networks’ own current location and SEC materials did not produce a verified Palo Alto Networks office, acquired-company facility, manufacturing site, sourcing relationship, revenue disclosure or investment specifically located in the West Bank, East Jerusalem or Golan Heights. No public evidence identified in the retained source set of a settlement-specific economic operation.^{1, 3}

The acquired-company record establishes substantial Israeli economic integration, but it does not by itself establish settlement activity. No settlement location is inferred from an Israeli incorporation, Tel Aviv office, Israel R&D operation or acquisition.^{1, 23, 2, 3}