Palo Alto Networks is aggressively pursuing a platform-centric growth strategy, evidenced by a 31.1% revenue surge in 2026Q3, though this transition has introduced significant operational volatility and margin compression. While the $13.6 billion in deferred r...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 31.1% in 2026Q3, though gross margins contracted to 67.6% as the company prioritized platform adoption over immediate profitability.
Palo Alto Networks' platformization strategy is driving adoption and growth, as highlighted in bullish theses.
The company's AI innovations are seen as a key driver for future growth and competitive advantage.
Palo Alto Networks has demonstrated strong Annual Recurring Revenue (ARR) growth, a positive sign for recurring income.
Trailing total returns as of 9/4/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 1, 2026 | $1.02+4.3% vs $0.98 | $3.4B+1.7% vs $3.4B |
Q3 2026 Jun 2, 2026 | $0.85+7.2% vs $0.79 | $3.0B+2.0% vs $2.9B |
Q1 2026 Feb 17, 2026 | $1.03+9.7% vs $0.94 | $2.6B+0.4% vs $2.6B |
Q1 2026 Feb 12, 2026 | $0.50-47.2% vs $0.94 | $2.1B-17.2% vs $2.6B |
Palo Alto Networks is a cybersecurity firm benefitting from AI-induced demand. The company released earnings after the end of the month, causing its stock to give up gains.
Palo Alto Networks NASDAQ: PANW is no cheap stock, trading at roughly 78x its fiscal 2027 (FY2027) guidance and 18x its long-term forecast, but its setup looks compelling, especially on dips.
Palo Alto Networks delivered another strong quarter, with revenue up 34% and NGS ARR reaching $9.1B, supported by continued platformization and rising AI-security demand. The business remains high quality, with strong recurring revenue, solid free cash flow generation, and growing customer penetration across SASE, Cortex, identity, and observability. The main issue is valuation. PANW still trades at a substantial premium to its own history, while FY27 NGS ARR growth is expected to normalize to 22-23%.
Palo Alto Networks, Inc. (NASDAQ:PANW) stock is higher during premarket trading on Thursday. The shares dropped by more than 9% on Wednesday after the company reported earnings.
Benchmark PANW against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Palo Alto Networks, Inc. (PANW)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $331.94 | $226.22B | 207.46 | 14.87% | 12.3% | 17.45% | — | |
| $156.36 | $114.56B | 64.35 | 14.17% | 28.17% | 187.95% | — | |
| $214.97 | $218.9B | -1343.56 | 21.71% | 1.08% | 1.27% | — | |
| $178.24 | $28.82B | -660.15 | 23.31% | -2.44% | -3.71% | — | |
| $137.41 | $14.03B | 14.28 | 6.25% | 37.93% | 36.43% | — | |
| $408.85 | $20.64B | -139.54 | 36.01% | -10.79% | -6.11% | — |
Palo Alto Networks, Inc. (PANW) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Palo Alto Networks, Inc. (PANW) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jun 2, 2026·SEC
Apr 13, 2026·SEC
Mar 23, 2026·SEC
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Palo Alto Networks, Inc. (PANW) stock FAQ — growth, dividends, profitability & financials explained
Palo Alto Networks, Inc. (PANW) reported $10.61B in revenue for fiscal year 2025. This represents a 21642% increase from $48.8M in 2010.
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 $842.8M in net income for fiscal year 2025 (12.3% net margin).
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 $4.29B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
