Google Cloud and Palo Alto Networks announced a multi‑year partnership on December 19, 2025 that will generate roughly $10 billion in revenue for the two companies. The deal is the largest security‑services contract ever signed by Google Cloud and expands its portfolio of threat‑detection and protection tools for enterprise customers.
The agreement is structured as a multi‑year commitment, with a portion of the spend earmarked for migrating Palo Alto’s existing security offerings to Google Cloud and a larger share dedicated to developing new AI‑driven security services. While the exact duration of the contract has not been disclosed, the $10 billion figure represents the total commitment over the life of the partnership.
Google Cloud’s Q3 2025 revenue rose 34% year‑over‑year to $15.2 billion, underscoring the company’s rapid growth in the cloud‑security segment. Palo Alto Networks reported a fiscal 2025 revenue of $9.22 billion, up 14.9% from the prior year, and its next‑generation security ARR reached $4.5 billion in fiscal Q1 2025. The partnership positions both firms to capture a larger share of the $200 billion‑plus global cybersecurity services market, which is increasingly driven by AI.
Matt Renner, President and Chief Revenue Officer of Google Cloud, said the deal “highlights our ability to support large‑scale, security‑first transformations for customers operating in an AI‑driven world.” BJ Jenkins, President of Palo Alto Networks, noted that the commitment “approaches $10 billion” and that a significant portion will fund new AI‑powered security services.
The partnership intensifies competition among cloud providers, particularly against Amazon Web Services and Microsoft Azure, and signals Google Cloud’s intent to become a leading player in the data‑center security arena. By leveraging Google Cloud’s infrastructure, Palo Alto can accelerate the deployment of its advanced threat‑detection tools, while Google gains a high‑margin, recurring revenue stream that aligns with its broader AI strategy.
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