Palo Alto Networks, Inc. (PANW) 10-Year Financial Performance & Capital Metrics

PANW • • Industrial / General

TechnologyInfrastructure SoftwareCybersecurity & Identity ManagementNetwork Security & Firewall

AboutPalo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customer's network and instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, uniform resource locator filtering, laptop and mobile device protection, and firewall; and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security analytics and automation, and threat intelligence and cyber security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.Show more

Revenue $9.22B +14.9%
EBITDA $1.59B +64.0%
Net Income $1.13B -56.0%
EPS (Diluted) 1.60 -56.0%
Gross Margin 73.41% -1.3%
EBITDA Margin 17.2% +42.8%
Operating Margin 13.48% +58.2%
Net Margin 12.3% -61.7%
ROE 17.45% -76.6%
ROIC 17.15% +31.4%
Debt/Equity 0.04 -83.4%
Interest Coverage 414.30 +402.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Excellent 3Y average ROE of 45.6%
✓FCF machine: 37.6% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 22.0%

✗Weaknesses

✗Expensive at 17.0x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y25.81%

5Y22.03%

3Y18.79%

TTM15.3%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-

TTM-59.14%

EPS CAGR

10Y-

5Y-

3Y-

TTM-58.75%

ROCE

10Y Avg-1.27%

5Y Avg2.77%

3Y Avg7.77%

Latest8.91%

Peer Comparison

Network Security & Firewall

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
RDWRRadware Ltd.	1.07B	24.64	176	5.2%	5.66%	4.28%	6.2%	0.05
PANWPalo Alto Networks, Inc.	130.85B	187.73	117.33	14.87%	11.69%	12.89%	2.65%	0.04
FTNTFortinet, Inc.	56.76B	76.32	33.77	12.27%	28.58%	254.88%	3.31%	0.67
ATENA10 Networks, Inc.	1.26B	17.58	26.24	3.97%	17.78%	24.52%	6.2%	0.05
CHKPCheck Point Software Technologies Ltd.	20.24B	188.54	25.27	6.22%	37.62%	32.79%	5.08%	0.01
ALARAlarum Technologies Ltd.	67.12M	9.36	11.01	20.88%	3.28%	3.83%	13.1%	0.06
HUBCHUB Cyber Security Ltd.	9.93M	4.55	-0.30	-30.7%	-176.14%
INTZIntrusion Inc.	29.55M	1.47	-0.99	2.85%	-112.36%	-83.5%		0.44

Profit & Loss

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Sales/Revenue+	1.38B	1.76B	2.27B	2.9B	3.41B	4.26B	5.5B	6.89B	8.03B	9.22B
Revenue Growth %	0.49%	0.28%	0.29%	0.28%	0.18%	0.25%	0.29%	0.25%	0.16%	0.15%
Cost of Goods Sold+	370M	476.6M	645.3M	808.4M	999.5M	1.27B	1.72B	1.91B	2.06B	2.45B
COGS % of Revenue	0.27%	0.27%	0.28%	0.28%	0.29%	0.3%	0.31%	0.28%	0.26%	0.27%
Gross Profit+	1.01B	1.28B	1.63B	2.09B	2.41B	2.98B	3.78B	4.98B	5.97B	6.77B
Gross Margin %	0.73%	0.73%	0.72%	0.72%	0.71%	0.7%	0.69%	0.72%	0.74%	0.73%
Gross Profit Growth %	0.49%	0.27%	0.27%	0.28%	0.15%	0.24%	0.27%	0.32%	0.2%	0.13%
Operating Expenses+	1.17B	1.44B	1.73B	2.15B	2.59B	3.29B	3.97B	4.6B	5.28B	5.53B
OpEx % of Revenue	0.85%	0.82%	0.76%	0.74%	0.76%	0.77%	0.72%	0.67%	0.66%	0.6%
Selling, General & Admin	881.6M	1.1B	1.33B	1.61B	1.82B	2.14B	2.55B	2.99B	3.48B	3.54B
SG&A % of Revenue	0.64%	0.62%	0.59%	0.55%	0.53%	0.5%	0.46%	0.43%	0.43%	0.38%
Research & Development	284.2M	347.4M	400.7M	539.5M	768.1M	1.14B	1.42B	1.6B	1.81B	1.98B
R&D % of Revenue	0.21%	0.2%	0.18%	0.19%	0.23%	0.27%	0.26%	0.23%	0.23%	0.22%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	-157.3M	-165.8M	-104.2M	-54.1M	-179M	-304.1M	-188.8M	387.3M	683.9M	1.24B
Operating Margin %	-0.11%	-0.09%	-0.05%	-0.02%	-0.05%	-0.07%	-0.03%	0.06%	0.09%	0.13%
Operating Income Growth %	-0.58%	-0.05%	0.37%	0.48%	-2.31%	-0.7%	0.38%	3.05%	0.77%	0.82%
EBITDA+	-114.5M	-106M	-7.8M	99.7M	27.1M	-43.7M	93.8M	669.5M	967.2M	1.59B
EBITDA Margin %	-0.08%	-0.06%	-0%	0.03%	0.01%	-0.01%	0.02%	0.1%	0.12%	0.17%
EBITDA Growth %	-0.61%	0.07%	0.93%	13.78%	-0.73%	-2.61%	3.15%	6.14%	0.44%	0.64%
D&A (Non-Cash Add-back)	42.8M	59.8M	96.4M	153.8M	206.1M	260.4M	282.6M	282.2M	283.3M	343.4M
EBIT	-148.9M	-155.6M	-75.7M	9.3M	-146.6M	-307M	-187M	586.8M	993.1M	1.6B
Net Interest Income+	-14.6M	-9.8M	-2.5M	-14.1M	-47.3M	-154.6M	-11.8M	197.2M	309.6M	360.5M
Interest Income	8.8M	14.7M	27.1M	69.8M	41.4M	8.5M	15.6M	224.4M	317.9M	363.5M
Interest Expense	23.4M	24.5M	29.6M	83.9M	88.7M	163.3M	27.4M	27.2M	8.3M	3M
Other Income/Expense	-15M	-28.3M	-1.1M	-20.5M	-52.8M	-160.9M	-18.4M	179M	304.4M	352.8M
Pretax Income+	-205.1M	-194.1M	-130.2M	-74.6M	-231.8M	-465M	-207.2M	566.3M	988.3M	1.6B
Pretax Margin %	-0.15%	-0.11%	-0.06%	-0.03%	-0.07%	-0.11%	-0.04%	0.08%	0.12%	0.17%
Income Tax+	20.8M	22.5M	17.7M	7.3M	35.2M	33.9M	59.8M	126.6M	-1.59B	461.8M
Effective Tax Rate %	1.1%	1.12%	1.14%	1.1%	1.15%	1.07%	1.29%	0.78%	2.61%	0.71%
Net Income+	-225.9M	-216.6M	-147.9M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Net Margin %	-0.16%	-0.12%	-0.07%	-0.03%	-0.08%	-0.12%	-0.05%	0.06%	0.32%	0.12%
Net Income Growth %	-0.37%	0.04%	0.32%	0.45%	-2.26%	-0.87%	0.46%	2.65%	4.86%	-0.56%
Net Income (Continuing)	-192.7M	-216.6M	-122.2M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	-0.43	-0.40	-0.27	-0.15	-0.46	-0.86	-0.45	0.64	3.64	1.60
EPS Growth %	-0.28%	0.07%	0.33%	0.46%	-2.17%	-0.87%	0.48%	2.42%	4.69%	-0.56%
EPS (Basic)	-0.43	-0.40	-0.27	-0.15	-0.46	-0.86	-0.45	0.73	4.04	1.71
Diluted Shares Outstanding	522.6M	543.6M	550.2M	567M	581.4M	578.4M	591M	684.6M	708M	709.3M
Basic Shares Outstanding	522.6M	543.6M	550.2M	567M	581.4M	578.4M	591M	606.4M	638.4M	662.5M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Total Current Assets+	1.77B	1.98B	4.13B	3.66B	5.13B	4.65B	6.41B	6.05B	6.85B	7.1B
Cash & Short-Term Investments	1.29B	1.38B	3.4B	2.8B	3.75B	2.9B	3.63B	2.39B	2.58B	2.9B
Cash Only	734.4M	744.3M	2.51B	961.4M	2.96B	1.87B	2.12B	1.14B	1.54B	2.27B
Short-Term Investments	551.2M	630.7M	896.5M	1.84B	789.8M	1.03B	1.52B	1.25B	1.04B	634.6M
Accounts Receivable	348.7M	432.1M	467M	582.4M	1.04B	1.24B	2.25B	2.85B	3.34B	3.68B
Days Sales Outstanding	92.33	89.53	74.99	73.31	111.06	106.38	149.53	151.03	152.07	145.64
Inventory	0	0	0	0	0	0	0	0	0	0
Days Inventory Outstanding	-	-	-	-	-	-	-	-	-	-
Other Current Assets	0	0	0	0	222.4M	365M	317.7M	339.2M	384.7M	520.5M
Total Non-Current Assets+	1.08B	1.46B	1.69B	2.93B	3.94B	5.59B	5.84B	8.45B	13.14B	16.47B
Property, Plant & Equipment	117.2M	211.1M	273.1M	296M	606.8M	581.3M	599.8M	617.8M	747M	734.3M
Fixed Asset Turnover	11.76x	8.34x	8.32x	9.80x	5.62x	7.32x	9.17x	11.16x	10.75x	12.56x
Goodwill	163.5M	238.8M	522.8M	1.35B	1.81B	2.71B	2.75B	2.93B	3.35B	4.57B
Intangible Assets	44M	53.7M	140.8M	280.6M	358.2M	498.6M	384.5M	315.4M	374.9M	762.7M
Long-Term Investments	652.8M	789.3M	547.5M	575.4M	554.4M	888.3M	1.05B	3.05B	4.17B	6.56B
Other Non-Current Assets	106.7M	169.1M	206.8M	423.1M	603.9M	421.4M	1.05B	344.8M	2.1B	1.43B
Total Assets+	2.86B	3.44B	5.82B	6.59B	9.07B	10.24B	12.25B	14.5B	19.99B	23.58B
Asset Turnover	0.48x	0.51x	0.39x	0.44x	0.38x	0.42x	0.45x	0.48x	0.40x	0.39x
Asset Growth %	0.45%	0.2%	0.69%	0.13%	0.38%	0.13%	0.2%	0.18%	0.38%	0.18%
Total Current Liabilities+	846.8M	1.2B	2.14B	2.05B	2.69B	5.12B	8.31B	7.74B	7.68B	7.99B
Accounts Payable	30.2M	35.5M	49.4M	73.3M	63.6M	56.9M	128M	132.3M	116.3M	232.2M
Days Payables Outstanding	29.79	27.19	27.94	33.1	23.23	16.29	27.18	25.29	20.61	34.57
Short-Term Debt	0	0	550.4M	0	0	1.56B	3.68B	1.99B	963.9M	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	73.5M	79.9M	201.4M	162.4M	322.2M	430.6M	461.1M	548.3M	554.7M	846M
Current Ratio	2.09x	1.65x	1.93x	1.78x	1.91x	0.91x	0.77x	0.78x	0.89x	0.89x
Quick Ratio	2.09x	1.65x	1.93x	1.78x	1.91x	0.91x	0.77x	0.78x	0.89x	0.89x
Cash Conversion Cycle	-	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	1.12B	1.48B	2.7B	2.95B	5.27B	4.36B	3.74B	5.02B	7.14B	7.76B
Long-Term Debt	500.2M	524.7M	1.37B	1.43B	3.08B	1.67B	0	0	0	0
Capital Lease Obligations	0	0	0	0	336.6M	313.4M	276.1M	279.2M	380.5M	338.2M
Deferred Tax Liabilities	0	0	0	0	0	0	0	28.1M	387.7M	89.1M
Other Non-Current Liabilities	79.4M	147.6M	229.6M	216M	90.1M	97.7M	108.4M	86.1M	430.9M	886.8M
Total Liabilities	1.97B	2.68B	4.83B	5.01B	7.96B	9.48B	12.04B	12.75B	14.82B	15.75B
Total Debt+	508.2M	524.7M	1.92B	1.43B	3.42B	3.54B	3.95B	2.27B	1.34B	338.2M
Net Debt	-226.2M	-219.6M	-586.8M	468.6M	462.7M	1.67B	1.83B	1.14B	-190.8M	-1.93B
Debt / Equity	0.64x	0.69x	1.94x	0.90x	3.10x	4.64x	18.82x	1.30x	0.26x	0.04x
Debt / EBITDA	-	-	-	14.34x	126.23x	-	42.14x	3.39x	1.39x	0.21x
Net Debt / EBITDA	-	-	-	4.70x	17.07x	-	19.56x	1.70x	-0.20x	-1.22x
Interest Coverage	-6.72x	-6.77x	-3.52x	-0.64x	-2.02x	-1.86x	-6.89x	14.24x	82.40x	414.30x
Total Equity+	789.9M	759.6M	988.3M	1.59B	1.1B	763.6M	210M	1.75B	5.17B	7.82B
Equity Growth %	0.37%	-0.04%	0.3%	0.61%	-0.31%	-0.31%	-0.72%	7.33%	1.96%	0.51%
Book Value per Share	1.51	1.40	1.80	2.80	1.90	1.32	0.36	2.55	7.30	11.03
Total Shareholders' Equity	789.9M	759.6M	988.3M	1.59B	1.1B	763.6M	210M	1.75B	5.17B	7.82B
Common Stock	1.52B	1.6B	1.97B	2.49B	2.26B	2.31B	1.93B	3.02B	3.82B	5.29B
Retained Earnings	-726.6M	-836.7M	-984.6M	-900.9M	-1.17B	-1.67B	-1.67B	-1.23B	1.35B	2.48B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	1M	-3.4M	-16.4M	-3.7M	10.5M	-9.9M	-55.6M	-43.2M	-1.6M	48.4M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Cash from Operations+	658.1M	868.5M	1.04B	1.06B	1.04B	1.5B	1.98B	2.78B	3.26B	3.72B
Operating CF Margin %	0.48%	0.49%	0.46%	0.36%	0.3%	0.35%	0.36%	0.4%	0.41%	0.4%
Operating CF Growth %	0.88%	0.32%	0.19%	0.02%	-0.02%	0.45%	0.32%	0.4%	0.17%	0.14%
Net Income	-225.9M	-216.6M	-147.9M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Depreciation & Amortization	42.8M	59.8M	96.4M	153.8M	253.5M	304.9M	282.6M	282.2M	283.3M	302.3M
Stock-Based Compensation	392.8M	474.5M	496.7M	567.7M	658.4M	894.5M	1.01B	1.07B	1.08B	1.3B
Deferred Taxes	2.5M	23.6M	500K	-17.5M	-6.2M	13.1M	-3.1M	1.91B	-2.03B	-349.9M
Other Non-Cash Items	23.4M	24.5M	69.9M	206M	325.2M	440.8M	440.3M	-1.48B	444.7M	411.8M
Working Capital Changes	422.5M	502.7M	521.4M	227.5M	71.8M	348.6M	520.8M	550.8M	910.3M	922.8M
Change in Receivables	-136.4M	-82.9M	-33M	-108.7M	-435.6M	-172.4M	-902M	-1.06B	-1.02B	-154.2M
Change in Inventory	23M	5.1M	-80.6M	-353.1M	-448.8M	-327.6M	0	0	0	0
Change in Payables	15.1M	5.9M	3.7M	32.3M	-12.8M	-11.8M	69.3M	1M	-15M	106.8M
Cash from Investing+	-338.9M	-472.6M	-520M	-1.83B	288M	-1.48B	-933.4M	-2.03B	-1.51B	-2.2B
Capital Expenditures	-72.5M	-163.4M	-112M	-131.2M	-214.4M	-116M	-192.8M	-146.3M	-156.8M	-246.2M
CapEx % of Revenue	0.05%	0.09%	0.05%	0.05%	0.06%	0.03%	0.04%	0.02%	0.02%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	6.4M	0	0	0	0	0	0	0	0	0
Cash from Financing+	39.4M	-386M	1.25B	-773.9M	673M	-1.1B	-806.6M	-1.73B	-1.34B	-778.9M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	38.9M	46.4M	-134M	-38.2M	-85.3M	75M	86.3M	238.4M	257.3M	-183.8M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	585.6M	705.1M	925M	924.4M	821.3M	1.39B	1.79B	2.63B	3.1B	3.47B
FCF Margin %	0.42%	0.4%	0.41%	0.32%	0.24%	0.33%	0.33%	0.38%	0.39%	0.38%
FCF Growth %	0.85%	0.2%	0.31%	-0%	-0.11%	0.69%	0.29%	0.47%	0.18%	0.12%
FCF per Share	1.12	1.30	1.68	1.63	1.41	2.40	3.03	3.84	4.38	4.89
FCF Conversion (FCF/Net Income)	-2.91x	-4.01x	-7.01x	-12.89x	-3.88x	-3.01x	-7.43x	6.32x	1.26x	3.28x
Interest Paid	0	0	800K	13.5M	13.5M	20M	20.2M	20.2M	5.6M	1.7M
Taxes Paid	7.1M	9M	11.2M	22M	17.2M	24.9M	34.6M	147.1M	342.3M	505.5M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	-33.08%	-27.96%	-16.92%	-6.36%	-19.87%	-53.49%	-54.85%	44.9%	74.52%	17.45%
Return on Invested Capital (ROIC)	-18.86%	-22.53%	-16.6%	-3.3%	-7.42%	-11.42%	-6.33%	11.79%	13.05%	17.15%
Gross Margin	73.16%	72.95%	71.61%	72.12%	70.68%	70.05%	68.76%	72.29%	74.35%	73.41%
Net Margin	-16.39%	-12.3%	-6.51%	-2.82%	-7.83%	-11.72%	-4.85%	6.38%	32.11%	12.3%
Debt / Equity	0.64x	0.69x	1.94x	0.90x	3.10x	4.64x	18.82x	1.30x	0.26x	0.04x
Interest Coverage	-6.72x	-6.77x	-3.52x	-0.64x	-2.02x	-1.86x	-6.89x	14.24x	82.40x	414.30x
FCF Conversion	-2.91x	-4.01x	-7.01x	-12.89x	-3.88x	-3.01x	-7.43x	6.32x	1.26x	3.28x
Revenue Growth	48.54%	27.79%	29.04%	27.56%	17.55%	24.87%	29.26%	25.29%	16.46%	14.87%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Subscription	357M	550.8M	759.6M	1.03B	1.41B	1.9B	2.54B	3.34B	4.19B	4.97B
Subscription Growth	-	54.29%	37.91%	35.95%	36.08%	35.12%	33.72%	31.37%	25.58%	18.76%
Support	-	-	-	770.7M	938.9M	1.24B	1.6B	1.98B	2.24B	2.45B
Support Growth	-	-	-	-	21.82%	31.75%	29.30%	23.73%	12.98%	9.37%
Product	-	-	-	1.1B	1.06B	1.12B	1.36B	1.58B	1.6B	1.8B
Product Growth	-	-	-	-	-2.92%	5.27%	21.67%	15.79%	1.58%	12.39%
Support and maintenance	350.7M	501.7M	642M	-	-	-	-	-	-	-
Support and maintenance Growth	-	43.06%	27.96%	-	-	-	-	-	-	-

Revenue by Geography

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Americas	973.2M	1.24B	1.56B	1.98B	2.33B	2.94B	3.8B	4.72B	5.48B	6.21B
Americas Growth	-	27.15%	25.97%	27.18%	17.43%	26.19%	29.45%	24.12%	16.17%	13.17%
EMEA	247.1M	320.1M	439.3M	564.8M	664.8M	817.3M	1.06B	1.36B	1.6B	1.92B
EMEA Growth	-	29.54%	37.24%	28.57%	17.71%	22.94%	29.18%	28.77%	17.83%	19.69%
Asia Pacific	158.2M	204.1M	275.1M	352.5M	415.7M	501.3M	643.1M	813.2M	942.6M	1.1B
Asia Pacific Growth	-	29.01%	34.79%	28.14%	17.93%	20.59%	28.29%	26.45%	15.91%	16.59%

Frequently Asked Questions

Valuation & Price

Palo Alto Networks, Inc. (PANW) has a price-to-earnings (P/E) ratio of 117.3x. This suggests investors expect higher future growth.

Growth & Financials

Palo Alto Networks, Inc. (PANW) reported $9.56B in revenue for fiscal year 2025. This represents a 3646% increase from $255.1M in 2012.

Palo Alto Networks, Inc. (PANW) grew revenue by 14.9% over the past year. This is steady growth.

Yes, Palo Alto Networks, Inc. (PANW) is profitable, generating $1.12B in net income for fiscal year 2025 (12.3% net margin).

Dividend & Returns

Palo Alto Networks, Inc. (PANW) has a return on equity (ROE) of 17.5%. This is reasonable for most industries.

Palo Alto Networks, Inc. (PANW) generated $3.94B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

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Palo Alto Networks, Inc. (PANW) 10-Year Financial Performance & Capital Metrics

PANW • • Industrial / General

TechnologyInfrastructure SoftwareCybersecurity & Identity ManagementNetwork Security & Firewall

Revenue $9.22B +14.9%
EBITDA $1.59B +64.0%
Net Income $1.13B -56.0%
EPS (Diluted) 1.60 -56.0%
Gross Margin 73.41% -1.3%
EBITDA Margin 17.2% +42.8%
Operating Margin 13.48% +58.2%
Net Margin 12.3% -61.7%
ROE 17.45% -76.6%
ROIC 17.15% +31.4%
Debt/Equity 0.04 -83.4%
Interest Coverage 414.30 +402.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Excellent 3Y average ROE of 45.6%
✓FCF machine: 37.6% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 22.0%

✗Weaknesses

✗Expensive at 17.0x book value

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y25.81%

5Y22.03%

3Y18.79%

TTM15.3%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-

TTM-59.14%

EPS CAGR

10Y-

5Y-

3Y-

TTM-58.75%

ROCE

10Y Avg-1.27%

5Y Avg2.77%

3Y Avg7.77%

Latest8.91%

Peer Comparison

Network Security & Firewall

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
RDWRRadware Ltd.	1.07B	24.64	176	5.2%	5.66%	4.28%	6.2%	0.05
PANWPalo Alto Networks, Inc.	130.85B	187.73	117.33	14.87%	11.69%	12.89%	2.65%	0.04
FTNTFortinet, Inc.	56.76B	76.32	33.77	12.27%	28.58%	254.88%	3.31%	0.67
ATENA10 Networks, Inc.	1.26B	17.58	26.24	3.97%	17.78%	24.52%	6.2%	0.05
CHKPCheck Point Software Technologies Ltd.	20.24B	188.54	25.27	6.22%	37.62%	32.79%	5.08%	0.01
ALARAlarum Technologies Ltd.	67.12M	9.36	11.01	20.88%	3.28%	3.83%	13.1%	0.06
HUBCHUB Cyber Security Ltd.	9.93M	4.55	-0.30	-30.7%	-176.14%
INTZIntrusion Inc.	29.55M	1.47	-0.99	2.85%	-112.36%	-83.5%		0.44

Profit & Loss

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Sales/Revenue+	1.38B	1.76B	2.27B	2.9B	3.41B	4.26B	5.5B	6.89B	8.03B	9.22B
Revenue Growth %	0.49%	0.28%	0.29%	0.28%	0.18%	0.25%	0.29%	0.25%	0.16%	0.15%
Cost of Goods Sold+	370M	476.6M	645.3M	808.4M	999.5M	1.27B	1.72B	1.91B	2.06B	2.45B
COGS % of Revenue	0.27%	0.27%	0.28%	0.28%	0.29%	0.3%	0.31%	0.28%	0.26%	0.27%
Gross Profit+	1.01B	1.28B	1.63B	2.09B	2.41B	2.98B	3.78B	4.98B	5.97B	6.77B
Gross Margin %	0.73%	0.73%	0.72%	0.72%	0.71%	0.7%	0.69%	0.72%	0.74%	0.73%
Gross Profit Growth %	0.49%	0.27%	0.27%	0.28%	0.15%	0.24%	0.27%	0.32%	0.2%	0.13%
Operating Expenses+	1.17B	1.44B	1.73B	2.15B	2.59B	3.29B	3.97B	4.6B	5.28B	5.53B
OpEx % of Revenue	0.85%	0.82%	0.76%	0.74%	0.76%	0.77%	0.72%	0.67%	0.66%	0.6%
Selling, General & Admin	881.6M	1.1B	1.33B	1.61B	1.82B	2.14B	2.55B	2.99B	3.48B	3.54B
SG&A % of Revenue	0.64%	0.62%	0.59%	0.55%	0.53%	0.5%	0.46%	0.43%	0.43%	0.38%
Research & Development	284.2M	347.4M	400.7M	539.5M	768.1M	1.14B	1.42B	1.6B	1.81B	1.98B
R&D % of Revenue	0.21%	0.2%	0.18%	0.19%	0.23%	0.27%	0.26%	0.23%	0.23%	0.22%
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	-157.3M	-165.8M	-104.2M	-54.1M	-179M	-304.1M	-188.8M	387.3M	683.9M	1.24B
Operating Margin %	-0.11%	-0.09%	-0.05%	-0.02%	-0.05%	-0.07%	-0.03%	0.06%	0.09%	0.13%
Operating Income Growth %	-0.58%	-0.05%	0.37%	0.48%	-2.31%	-0.7%	0.38%	3.05%	0.77%	0.82%
EBITDA+	-114.5M	-106M	-7.8M	99.7M	27.1M	-43.7M	93.8M	669.5M	967.2M	1.59B
EBITDA Margin %	-0.08%	-0.06%	-0%	0.03%	0.01%	-0.01%	0.02%	0.1%	0.12%	0.17%
EBITDA Growth %	-0.61%	0.07%	0.93%	13.78%	-0.73%	-2.61%	3.15%	6.14%	0.44%	0.64%
D&A (Non-Cash Add-back)	42.8M	59.8M	96.4M	153.8M	206.1M	260.4M	282.6M	282.2M	283.3M	343.4M
EBIT	-148.9M	-155.6M	-75.7M	9.3M	-146.6M	-307M	-187M	586.8M	993.1M	1.6B
Net Interest Income+	-14.6M	-9.8M	-2.5M	-14.1M	-47.3M	-154.6M	-11.8M	197.2M	309.6M	360.5M
Interest Income	8.8M	14.7M	27.1M	69.8M	41.4M	8.5M	15.6M	224.4M	317.9M	363.5M
Interest Expense	23.4M	24.5M	29.6M	83.9M	88.7M	163.3M	27.4M	27.2M	8.3M	3M
Other Income/Expense	-15M	-28.3M	-1.1M	-20.5M	-52.8M	-160.9M	-18.4M	179M	304.4M	352.8M
Pretax Income+	-205.1M	-194.1M	-130.2M	-74.6M	-231.8M	-465M	-207.2M	566.3M	988.3M	1.6B
Pretax Margin %	-0.15%	-0.11%	-0.06%	-0.03%	-0.07%	-0.11%	-0.04%	0.08%	0.12%	0.17%
Income Tax+	20.8M	22.5M	17.7M	7.3M	35.2M	33.9M	59.8M	126.6M	-1.59B	461.8M
Effective Tax Rate %	1.1%	1.12%	1.14%	1.1%	1.15%	1.07%	1.29%	0.78%	2.61%	0.71%
Net Income+	-225.9M	-216.6M	-147.9M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Net Margin %	-0.16%	-0.12%	-0.07%	-0.03%	-0.08%	-0.12%	-0.05%	0.06%	0.32%	0.12%
Net Income Growth %	-0.37%	0.04%	0.32%	0.45%	-2.26%	-0.87%	0.46%	2.65%	4.86%	-0.56%
Net Income (Continuing)	-192.7M	-216.6M	-122.2M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	-0.43	-0.40	-0.27	-0.15	-0.46	-0.86	-0.45	0.64	3.64	1.60
EPS Growth %	-0.28%	0.07%	0.33%	0.46%	-2.17%	-0.87%	0.48%	2.42%	4.69%	-0.56%
EPS (Basic)	-0.43	-0.40	-0.27	-0.15	-0.46	-0.86	-0.45	0.73	4.04	1.71
Diluted Shares Outstanding	522.6M	543.6M	550.2M	567M	581.4M	578.4M	591M	684.6M	708M	709.3M
Basic Shares Outstanding	522.6M	543.6M	550.2M	567M	581.4M	578.4M	591M	606.4M	638.4M	662.5M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Total Current Assets+	1.77B	1.98B	4.13B	3.66B	5.13B	4.65B	6.41B	6.05B	6.85B	7.1B
Cash & Short-Term Investments	1.29B	1.38B	3.4B	2.8B	3.75B	2.9B	3.63B	2.39B	2.58B	2.9B
Cash Only	734.4M	744.3M	2.51B	961.4M	2.96B	1.87B	2.12B	1.14B	1.54B	2.27B
Short-Term Investments	551.2M	630.7M	896.5M	1.84B	789.8M	1.03B	1.52B	1.25B	1.04B	634.6M
Accounts Receivable	348.7M	432.1M	467M	582.4M	1.04B	1.24B	2.25B	2.85B	3.34B	3.68B
Days Sales Outstanding	92.33	89.53	74.99	73.31	111.06	106.38	149.53	151.03	152.07	145.64
Inventory	0	0	0	0	0	0	0	0	0	0
Days Inventory Outstanding	-	-	-	-	-	-	-	-	-	-
Other Current Assets	0	0	0	0	222.4M	365M	317.7M	339.2M	384.7M	520.5M
Total Non-Current Assets+	1.08B	1.46B	1.69B	2.93B	3.94B	5.59B	5.84B	8.45B	13.14B	16.47B
Property, Plant & Equipment	117.2M	211.1M	273.1M	296M	606.8M	581.3M	599.8M	617.8M	747M	734.3M
Fixed Asset Turnover	11.76x	8.34x	8.32x	9.80x	5.62x	7.32x	9.17x	11.16x	10.75x	12.56x
Goodwill	163.5M	238.8M	522.8M	1.35B	1.81B	2.71B	2.75B	2.93B	3.35B	4.57B
Intangible Assets	44M	53.7M	140.8M	280.6M	358.2M	498.6M	384.5M	315.4M	374.9M	762.7M
Long-Term Investments	652.8M	789.3M	547.5M	575.4M	554.4M	888.3M	1.05B	3.05B	4.17B	6.56B
Other Non-Current Assets	106.7M	169.1M	206.8M	423.1M	603.9M	421.4M	1.05B	344.8M	2.1B	1.43B
Total Assets+	2.86B	3.44B	5.82B	6.59B	9.07B	10.24B	12.25B	14.5B	19.99B	23.58B
Asset Turnover	0.48x	0.51x	0.39x	0.44x	0.38x	0.42x	0.45x	0.48x	0.40x	0.39x
Asset Growth %	0.45%	0.2%	0.69%	0.13%	0.38%	0.13%	0.2%	0.18%	0.38%	0.18%
Total Current Liabilities+	846.8M	1.2B	2.14B	2.05B	2.69B	5.12B	8.31B	7.74B	7.68B	7.99B
Accounts Payable	30.2M	35.5M	49.4M	73.3M	63.6M	56.9M	128M	132.3M	116.3M	232.2M
Days Payables Outstanding	29.79	27.19	27.94	33.1	23.23	16.29	27.18	25.29	20.61	34.57
Short-Term Debt	0	0	550.4M	0	0	1.56B	3.68B	1.99B	963.9M	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	73.5M	79.9M	201.4M	162.4M	322.2M	430.6M	461.1M	548.3M	554.7M	846M
Current Ratio	2.09x	1.65x	1.93x	1.78x	1.91x	0.91x	0.77x	0.78x	0.89x	0.89x
Quick Ratio	2.09x	1.65x	1.93x	1.78x	1.91x	0.91x	0.77x	0.78x	0.89x	0.89x
Cash Conversion Cycle	-	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	1.12B	1.48B	2.7B	2.95B	5.27B	4.36B	3.74B	5.02B	7.14B	7.76B
Long-Term Debt	500.2M	524.7M	1.37B	1.43B	3.08B	1.67B	0	0	0	0
Capital Lease Obligations	0	0	0	0	336.6M	313.4M	276.1M	279.2M	380.5M	338.2M
Deferred Tax Liabilities	0	0	0	0	0	0	0	28.1M	387.7M	89.1M
Other Non-Current Liabilities	79.4M	147.6M	229.6M	216M	90.1M	97.7M	108.4M	86.1M	430.9M	886.8M
Total Liabilities	1.97B	2.68B	4.83B	5.01B	7.96B	9.48B	12.04B	12.75B	14.82B	15.75B
Total Debt+	508.2M	524.7M	1.92B	1.43B	3.42B	3.54B	3.95B	2.27B	1.34B	338.2M
Net Debt	-226.2M	-219.6M	-586.8M	468.6M	462.7M	1.67B	1.83B	1.14B	-190.8M	-1.93B
Debt / Equity	0.64x	0.69x	1.94x	0.90x	3.10x	4.64x	18.82x	1.30x	0.26x	0.04x
Debt / EBITDA	-	-	-	14.34x	126.23x	-	42.14x	3.39x	1.39x	0.21x
Net Debt / EBITDA	-	-	-	4.70x	17.07x	-	19.56x	1.70x	-0.20x	-1.22x
Interest Coverage	-6.72x	-6.77x	-3.52x	-0.64x	-2.02x	-1.86x	-6.89x	14.24x	82.40x	414.30x
Total Equity+	789.9M	759.6M	988.3M	1.59B	1.1B	763.6M	210M	1.75B	5.17B	7.82B
Equity Growth %	0.37%	-0.04%	0.3%	0.61%	-0.31%	-0.31%	-0.72%	7.33%	1.96%	0.51%
Book Value per Share	1.51	1.40	1.80	2.80	1.90	1.32	0.36	2.55	7.30	11.03
Total Shareholders' Equity	789.9M	759.6M	988.3M	1.59B	1.1B	763.6M	210M	1.75B	5.17B	7.82B
Common Stock	1.52B	1.6B	1.97B	2.49B	2.26B	2.31B	1.93B	3.02B	3.82B	5.29B
Retained Earnings	-726.6M	-836.7M	-984.6M	-900.9M	-1.17B	-1.67B	-1.67B	-1.23B	1.35B	2.48B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	1M	-3.4M	-16.4M	-3.7M	10.5M	-9.9M	-55.6M	-43.2M	-1.6M	48.4M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Jul 2016	Jul 2017	Jul 2018	Jul 2019	Jul 2020	Jul 2021	Jul 2022	Jul 2023	Jul 2024	Jul 2025
Cash from Operations+	658.1M	868.5M	1.04B	1.06B	1.04B	1.5B	1.98B	2.78B	3.26B	3.72B
Operating CF Margin %	0.48%	0.49%	0.46%	0.36%	0.3%	0.35%	0.36%	0.4%	0.41%	0.4%
Operating CF Growth %	0.88%	0.32%	0.19%	0.02%	-0.02%	0.45%	0.32%	0.4%	0.17%	0.14%
Net Income	-225.9M	-216.6M	-147.9M	-81.9M	-267M	-498.9M	-267M	439.7M	2.58B	1.13B
Depreciation & Amortization	42.8M	59.8M	96.4M	153.8M	253.5M	304.9M	282.6M	282.2M	283.3M	302.3M
Stock-Based Compensation	392.8M	474.5M	496.7M	567.7M	658.4M	894.5M	1.01B	1.07B	1.08B	1.3B
Deferred Taxes	2.5M	23.6M	500K	-17.5M	-6.2M	13.1M	-3.1M	1.91B	-2.03B	-349.9M
Other Non-Cash Items	23.4M	24.5M	69.9M	206M	325.2M	440.8M	440.3M	-1.48B	444.7M	411.8M
Working Capital Changes	422.5M	502.7M	521.4M	227.5M	71.8M	348.6M	520.8M	550.8M	910.3M	922.8M
Change in Receivables	-136.4M	-82.9M	-33M	-108.7M	-435.6M	-172.4M	-902M	-1.06B	-1.02B	-154.2M
Change in Inventory	23M	5.1M	-80.6M	-353.1M	-448.8M	-327.6M	0	0	0	0
Change in Payables	15.1M	5.9M	3.7M	32.3M	-12.8M	-11.8M	69.3M	1M	-15M	106.8M
Cash from Investing+	-338.9M	-472.6M	-520M	-1.83B	288M	-1.48B	-933.4M	-2.03B	-1.51B	-2.2B
Capital Expenditures	-72.5M	-163.4M	-112M	-131.2M	-214.4M	-116M	-192.8M	-146.3M	-156.8M	-246.2M
CapEx % of Revenue	0.05%	0.09%	0.05%	0.05%	0.06%	0.03%	0.04%	0.02%	0.02%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	6.4M	0	0	0	0	0	0	0	0	0
Cash from Financing+	39.4M	-386M	1.25B	-773.9M	673M	-1.1B	-806.6M	-1.73B	-1.34B	-778.9M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	38.9M	46.4M	-134M	-38.2M	-85.3M	75M	86.3M	238.4M	257.3M	-183.8M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	585.6M	705.1M	925M	924.4M	821.3M	1.39B	1.79B	2.63B	3.1B	3.47B
FCF Margin %	0.42%	0.4%	0.41%	0.32%	0.24%	0.33%	0.33%	0.38%	0.39%	0.38%
FCF Growth %	0.85%	0.2%	0.31%	-0%	-0.11%	0.69%	0.29%	0.47%	0.18%	0.12%
FCF per Share	1.12	1.30	1.68	1.63	1.41	2.40	3.03	3.84	4.38	4.89
FCF Conversion (FCF/Net Income)	-2.91x	-4.01x	-7.01x	-12.89x	-3.88x	-3.01x	-7.43x	6.32x	1.26x	3.28x
Interest Paid	0	0	800K	13.5M	13.5M	20M	20.2M	20.2M	5.6M	1.7M
Taxes Paid	7.1M	9M	11.2M	22M	17.2M	24.9M	34.6M	147.1M	342.3M	505.5M

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	-33.08%	-27.96%	-16.92%	-6.36%	-19.87%	-53.49%	-54.85%	44.9%	74.52%	17.45%
Return on Invested Capital (ROIC)	-18.86%	-22.53%	-16.6%	-3.3%	-7.42%	-11.42%	-6.33%	11.79%	13.05%	17.15%
Gross Margin	73.16%	72.95%	71.61%	72.12%	70.68%	70.05%	68.76%	72.29%	74.35%	73.41%
Net Margin	-16.39%	-12.3%	-6.51%	-2.82%	-7.83%	-11.72%	-4.85%	6.38%	32.11%	12.3%
Debt / Equity	0.64x	0.69x	1.94x	0.90x	3.10x	4.64x	18.82x	1.30x	0.26x	0.04x
Interest Coverage	-6.72x	-6.77x	-3.52x	-0.64x	-2.02x	-1.86x	-6.89x	14.24x	82.40x	414.30x
FCF Conversion	-2.91x	-4.01x	-7.01x	-12.89x	-3.88x	-3.01x	-7.43x	6.32x	1.26x	3.28x
Revenue Growth	48.54%	27.79%	29.04%	27.56%	17.55%	24.87%	29.26%	25.29%	16.46%	14.87%

Revenue by Segment

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Subscription	357M	550.8M	759.6M	1.03B	1.41B	1.9B	2.54B	3.34B	4.19B	4.97B
Subscription Growth	-	54.29%	37.91%	35.95%	36.08%	35.12%	33.72%	31.37%	25.58%	18.76%
Support	-	-	-	770.7M	938.9M	1.24B	1.6B	1.98B	2.24B	2.45B
Support Growth	-	-	-	-	21.82%	31.75%	29.30%	23.73%	12.98%	9.37%
Product	-	-	-	1.1B	1.06B	1.12B	1.36B	1.58B	1.6B	1.8B
Product Growth	-	-	-	-	-2.92%	5.27%	21.67%	15.79%	1.58%	12.39%
Support and maintenance	350.7M	501.7M	642M	-	-	-	-	-	-	-
Support and maintenance Growth	-	43.06%	27.96%	-	-	-	-	-	-	-

Revenue by Geography

	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Americas	973.2M	1.24B	1.56B	1.98B	2.33B	2.94B	3.8B	4.72B	5.48B	6.21B
Americas Growth	-	27.15%	25.97%	27.18%	17.43%	26.19%	29.45%	24.12%	16.17%	13.17%
EMEA	247.1M	320.1M	439.3M	564.8M	664.8M	817.3M	1.06B	1.36B	1.6B	1.92B
EMEA Growth	-	29.54%	37.24%	28.57%	17.71%	22.94%	29.18%	28.77%	17.83%	19.69%
Asia Pacific	158.2M	204.1M	275.1M	352.5M	415.7M	501.3M	643.1M	813.2M	942.6M	1.1B
Asia Pacific Growth	-	29.01%	34.79%	28.14%	17.93%	20.59%	28.29%	26.45%	15.91%	16.59%

Frequently Asked Questions

Valuation & Price

Palo Alto Networks, Inc. (PANW) has a price-to-earnings (P/E) ratio of 117.3x. This suggests investors expect higher future growth.

Growth & Financials

Palo Alto Networks, Inc. (PANW) reported $9.56B in revenue for fiscal year 2025. This represents a 3646% increase from $255.1M in 2012.

Palo Alto Networks, Inc. (PANW) grew revenue by 14.9% over the past year. This is steady growth.

Yes, Palo Alto Networks, Inc. (PANW) is profitable, generating $1.12B in net income for fiscal year 2025 (12.3% net margin).

Dividend & Returns

Palo Alto Networks, Inc. (PANW) has a return on equity (ROE) of 17.5%. This is reasonable for most industries.

Palo Alto Networks, Inc. (PANW) generated $3.94B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.