Our share today stands at just 7% of our addressable market, which is lower than the share of leaders in many other markets outside of the cybersecurity industry. As we plot the course to the larger term that Nikesh outlined over the next five years, we continue to see the opportunity to gain share in our existing markets, and continue to fuel above market growth for Palo Alto Networks. Looking at this through the product lens, Lee and his team outlined our platform leadership in our three areas, and showed you the innovation plans their teams have to continue to lead our markets. From my seed at the company, innovation is our lifeblood, and we will continue to spend aggressively on R&D. We do not focus on driving leverage to the bottom line, but rather we redeploy any savings we identify to invest in additional innovation.
Our customers expect us to continue innovating, and we have consistently shown a strong return from these innovation investments. This includes recognition of our innovations, such as the Gartner single vendor SASE leadership position that we mentioned today. We expect our innovation to show through, and financial outcomes in each platform and the company overall. In network security, our investments across form factors, especially software-based and cloud delivered, enable us to further our market position and sustain our growth in FWaaP billings. Our market share and our software-based VM business is approximately two times what it is in hardware. In SASE, we believe that we are the number two player in this fast growing market. In cloud security, the growth algorithm is leveraging products and go-to-market capabilities to drive credit consumption ahead of the growth rate customers are deploying public cloud.
Along the way, we are confident we can increase multi module consumption, to solidify our position as the definitive code-to-cloud leader. In Cortex, we have a solid business with XDR, XSOAR and Expanse, competing an attractive individual product markets. We’ve seen a shrinking number of players in the XDR market, and have steadily added several 100 customers per quarter. Adding customers across Cortex is important to allow us to drive larger, more strategic deals in the future, where we can further cross sell our products, including XSIAM. XSIAM is truly game changing innovation, where we are selling outcomes, and I’m confident that momentum will beget momentum here, after a very strong launch of the product in the first year. It should be clear from BJ’s presentation that we’ve invested in building a large dedicated go-to-market organization, and are transforming how we engage with the market.
Transformation here has been a nonstop effort and has driven growth – in the number of large deals each quarter. On the back of the core tenants BJ covered, we see the opportunity to continue to drive more strategic relationships with customers that can result in eight, and even nine figure relationships. At the same time that we have seen these large deal outcomes, we’ve consistently improved the productivity of our core apps, as they collectively become better at selling the broader portfolio. As Nikesh mentioned, SASE has been a big success here. Additionally, we have seen standout growth from new ecosystem partners, including the cloud service providers, and global system integrators. Not only has our business transacted through these channels increased, but more importantly, so has our success leveraging these partners as influences.
We have the product portfolio that makes us an attractive partner to these players, along with the scale to make the investments to support the success of these partners. Bringing this together on the top line, as Nikesh noted, we’re targeting growth of 17% to 19% in revenue and billings over the next three years, which is ahead of the cybersecurity market growth rates. We see hardware as a percentage of our total revenue decreasing to approximately 10% with NGS ARR exiting fiscal year ’26 above 55% of our fiscal year ’26 revenue. RPO remains an important metric as it captures the full value of our customer contracts independent of payment terms, and we expect growth of 25% annually through fiscal year ’26. Additionally, we see about two-thirds of our revenue in fiscal year ’26, driven by current RPO entering the year highlighting the increase in predictability of our revenue profile.
Now moving to the cost side, and first with gross margin. As I hope Lee and BJ have impressed on upon you, we have significant advantages inherent in building and delivering platforms. There are characteristics of our platform business model that benefit gross margins. A higher software mix in our network security business, helps contribute to a higher gross margin, something we saw in fiscal year ’23. On the cloud delivered side, most notably in SASE, and Cortex, we’ve aligned with public service, providers to enable us to instantly leverage their scale, and delivery capability as well as take advantage of their ongoing innovations and efficiencies. As we grow, we see improvements in our unit economics. Lastly, in customer support, with multiple scale products in each of our platforms and common customer support needs, we see leverage within our platforms and across the company.
Above and beyond these platform benefits, as we talked about earlier in fiscal year ’23, we accelerated some efficiency initiatives that contributed to higher gross margins. We also saw a normalization of the supply chain during fiscal year ’23. Starting in in ’23, we have increased our investments around generative AI to leverage this technology in customer support for efficiency, and better medium term customer outcomes. While we see these platform leverage, and efficiency opportunities in gross margins, we also leave room to invest in new cloud-based offerings, which generally have subscale gross margins in their initial phases. For this reason, we expect to relatively steady gross margin in fiscal year ’26 as compared to fiscal year ’23.
