Palo Alto Networks
PANW Nasdaq Systems Software Financials FY2017–FY2026
Palo Alto Networks' revenue rose 24.5% to $11.5 billion in fiscal 2026. Its operating margin was 6.0%, down from 13.5% a year earlier. Free cash flow was $4.1 billion, up 18.6%. It paid out $1.0 billion in dividends and buybacks, 24% of free cash flow. The diluted share count rose 7.8%.
About these figures. Share counts and per-share figures for earlier years are restated for stock splits (2-for-1 and 3-for-1), so every year is on today's share basis. Interest coverage for fiscal 2026 is blank: the 10-K's structured data has no interest expense for that year.
What Palo Alto Networks does
Palo Alto Networks sells cybersecurity products and services to businesses and governments. It was incorporated in 2005 and is based in Santa Clara, California. Its strategy is to combine many security tools into a few platforms so customers can use fewer separate products.
Its offerings fall into three platforms. Network & AI Security includes firewalls, a cloud-delivered secure access service, add-on security subscriptions and a product that protects AI applications and agents. Cortex covers security operations, cloud security and an observability platform, called Chronosphere, that monitors cloud systems and applications. Idira is a platform for identity security, which controls who and what, including software and AI agents, can reach systems. It also sells threat intelligence and advisory services under the Unit 42 name.
Revenue comes largely from subscription and support offerings, which it recognizes over the length of the service period, plus products. It sells through channel partners such as distributors and resellers. In fiscal 2026 two distributors together made up 30% of its total revenue. The company says it faces competition from vendors with broader platforms, and from cloud and AI companies that now offer their own security and observability tools. It has acquired other companies, including CyberArk.
- Legal name
- Palo Alto Networks, Inc
- Fiscal year ends
- July 31, 2026
- Latest annual report
- 10-K · Sep 10, 2026
- Accession · CIK
- 0001327567-26-000023
0001327567
Revenue and margins
Palo Alto Networks had $11.5B of revenue in fiscal 2026, up 24.5% on the year before.
Net income and earnings per share
Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $4.1B in fiscal 2026, 35.8% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Palo Alto Networks returned $1.0B to shareholders in fiscal 2026, 24% of free cash flow. The diluted share count rose 7.8%.
Value Palo Alto Networks yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of $1.3B and divides by 764.0M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today — · peers 50.0x · sector 33.3x.
Balance sheet
Cash, debt and the ratios that show how comfortably Palo Alto Networks can carry it.
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | $3.6B | $2.4B | $2.6B | $2.9B | $3.1B |
| Debt incl. finance leases | $3.7B | $2.0B | $964M | $0.0M | $1.8B |
| Net debt / EBITDA | 0.5x | −0.6x | −1.7x | −1.8x | −0.8x |
| Debt / equity | — | 1.1x | 0.2x | 0.0x | 0.1x |
| Interest coverage | −6.9x | 14.2x | 82.4x | 414.3x | — |
| Current ratio | 0.8x | 0.8x | 0.9x | 0.9x | 0.9x |
| Quick ratio | 0.8x | 0.8x | 0.9x | 0.9x | 0.9x |
| Total assets | $12.3B | $14.5B | $20.0B | $23.6B | $48.5B |
| Total liabilities | $12.0B | $12.8B | $14.8B | $15.8B | $21.0B |
| Shareholders' equity | $210M | $1.7B | $5.2B | $7.8B | $27.5B |
| Net debt (− = net cash) | $42.3M | −$399M | −$1.6B | −$2.9B | −$1.3B |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.0M
0 insiders
Sold, 12 months
$21.4M
6 insiders
Of sales under plans
56%
$11.9M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 9, 2026 | Aparna BawaDirector | Sold | 250 | $412.28 | $0.1M | Form 4 |
| Oct 1, 2026 | Josh D. PaulChief Accounting Officer | Sold plan | 400 | $395.70 | $0.2M | Form 4 |
| Sep 24, 2026 | Aparna BawaDirector | Sold | 260 | $392.69 | $0.1M | Form 4 |
| Sep 24, 2026 | Dipak GolechhaEVP, Chief Financial Officer | Sold plan | 27,500 | $391.61 | $10.8M | Form 4 |
| Sep 17, 2026 | James J GoetzDirector | Sold | 20,000 | $376.69 | $7.5M | Form 4 |
| Sep 15, 2026 | Aparna BawaDirector | Sold | 500 | $377.18 | $0.2M | Form 4 |
| Sep 14, 2026 | Aparna BawaDirector | Sold | 1,000 | $373.61 | $0.4M | Form 4 |
| Sep 14, 2026 | John P. KeyDirector | Sold | 2,500 | $376.03 | $0.9M | Form 4 |
| Sep 1, 2026 | Josh D. PaulChief Accounting Officer | Sold plan | 900 | $373.68 | $0.3M | Form 4 |
| Aug 25, 2026 | Josh D. PaulChief Accounting Officer | Sold plan | 900 | $353.77 | $0.3M | Form 4 |
| Jul 7, 2026 | Helle Thorning-SchmidtDirector | Sold | 700 | $346.85 | $0.2M | Form 4 |
| Jul 1, 2026 | Josh D. PaulChief Accounting Officer | Sold plan | 900 | $345.00 | $0.3M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✓ | ✕ | ✕ |
| Cash from operations exceeds net income | ✓ | ✓ | ✓ |
| Debt fell relative to assets | ✓ | ✓ | ✕ |
| Current ratio rose | ✓ | ✓ | ✕ |
| Share count didn't rise | ✕ | ✕ | ✕ |
| Gross margin rose | ✓ | ✕ | ✕ |
| Revenue rose relative to assets | ✕ | ✕ | ✓ |
| F-score | 7 / 9 | 5 / 9 | 4 / 9 |
| Accruals ratio | −3.9% | −11.9% | −11.8% |
| Altman Z'' | 0.54 | 1.09 | 1.49 |
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10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $1.8B | $2.3B | $2.9B | $3.4B | $4.3B | $5.5B | $6.9B | $8.0B | $9.2B | $11.5B |
| Gross profit | $1.3B | $1.6B | $2.1B | $2.4B | $3.0B | $3.8B | $5.0B | $6.0B | $6.8B | $8.1B |
| Research and development | $347M | $401M | $540M | $768M | $1.1B | $1.4B | $1.6B | $1.8B | $2.0B | $2.6B |
| Operating income | −$166M | −$104M | −$54.1M | −$179M | −$304M | −$189M | $387M | $684M | $1.2B | $695M |
| Interest expense | $24.5M | $29.6M | $83.9M | $88.7M | $163M | $27.4M | $27.2M | $8.3M | $3.0M | $0.0M |
| Pretax income | −$180M | −$105M | −$74.6M | −$232M | −$465M | −$207M | $566M | $988M | $1.6B | $536M |
| Income tax | $22.9M | $16.9M | $7.3M | $35.2M | $33.9M | $59.8M | $127M | −$1.6B | $462M | $229M |
| Net income | −$203M | −$122M | −$81.9M | −$267M | −$499M | −$267M | $440M | $2.6B | $1.1B | $307M |
| Diluted EPS | −$0.37 | −$0.22 | −$0.14 | −$0.46 | −$0.86 | −$0.45 | $0.64 | $3.64 | $1.60 | $0.40 |
| Diluted shares | 0.54B | 0.55B | 0.57B | 0.58B | 0.58B | 0.59B | 0.68B | 0.71B | 0.71B | 0.76B |
| Cash flow | ||||||||||
| Cash from operations | $869M | $1.0B | $1.1B | $1.0B | $1.5B | $2.0B | $2.8B | $3.3B | $3.7B | $4.6B |
| Capital expenditure | $163M | $112M | $131M | $214M | $116M | $193M | $146M | $157M | $247M | $440M |
| Free cash flow | $705M | $926M | $924M | $821M | $1.4B | $1.8B | $2.6B | $3.1B | $3.5B | $4.1B |
| Depreciation and amortization | $59.8M | $96.4M | $154M | $206M | $260M | $283M | $282M | $284M | $343M | $855M |
| Stock-based compensation | $475M | $497M | $568M | $658M | $895M | $1.0B | $1.1B | $1.1B | $1.3B | $1.8B |
| Acquisitions | $90.7M | $374M | $774M | $584M | $777M | $37.0M | $205M | $611M | $1.1B | $4.7B |
| Share buybacks | $411M | $259M | $330M | $1.2B | $1.2B | $892M | $273M | $567M | $0.0M | $1.0B |
| Dividends paid | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Dividends and buybacks | $411M | $259M | $330M | $1.2B | $1.2B | $892M | $273M | $567M | $0.0M | $1.0B |
| Balance sheet | ||||||||||
| Cash and short-term investments | $744M | $3.4B | $2.8B | $3.7B | $2.9B | $3.6B | $2.4B | $2.6B | $2.9B | $3.1B |
| Total debt | $525M | $1.9B | $1.4B | $3.1B | $3.2B | $3.7B | $2.0B | $964M | $0.0M | $1.8B |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $2.0B | $4.1B | $3.7B | $5.1B | $4.6B | $6.4B | $6.0B | $6.8B | $7.5B | $8.6B |
| Current liabilities | $1.2B | $2.1B | $2.1B | $2.7B | $5.1B | $8.3B | $7.7B | $7.7B | $8.0B | $9.9B |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $116M | $113M | $117M |
| Property and equipment, net | $211M | $273M | $296M | $348M | $318M | $358M | $355M | $361M | $387M | $523M |
| Total assets | $3.4B | $5.9B | $6.6B | $9.1B | $10.2B | $12.3B | $14.5B | $20.0B | $23.6B | $48.5B |
| Total liabilities | $2.5B | $4.8B | $5.0B | $8.0B | $9.5B | $12.0B | $12.8B | $14.8B | $15.8B | $21.0B |
| Shareholders' equity | $760M | $1.2B | $1.6B | $1.1B | $635M | $210M | $1.7B | $5.2B | $7.8B | $27.5B |
| Margins | ||||||||||
| Gross margin | 72.6% | 71.6% | 72.1% | 70.7% | 70.1% | 68.8% | 72.3% | 74.4% | 73.4% | 70.4% |
| Operating margin | −9.4% | −4.6% | −1.9% | −5.3% | −7.2% | −3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| EBITDA margin | −6.0% | −0.3% | 3.4% | 0.8% | −1.0% | 1.7% | 9.7% | 12.1% | 17.2% | 13.5% |
| Net margin | −11.5% | −5.4% | −2.8% | −7.8% | −11.7% | −4.9% | 6.4% | 32.1% | 12.3% | 2.7% |
| FCF margin | 40.0% | 40.7% | 31.9% | 24.1% | 32.6% | 32.6% | 38.2% | 38.6% | 37.6% | 35.8% |
| Returns | ||||||||||
| Return on capital | −17.2% | — | — | — | — | — | — | 27.9% | 20.8% | 2.6% |
| Return on capital employed | −7.8% | −3.4% | −1.3% | −3.3% | −5.3% | −4.2% | 7.2% | 7.2% | 8.9% | 2.6% |
| Return on equity | −24.5% | −12.7% | −6.0% | −19.9% | −57.5% | — | 44.9% | 74.5% | 17.5% | 1.7% |
| Return on assets | −6.5% | −2.6% | −1.3% | −3.4% | −5.2% | −2.4% | 3.3% | 15.0% | 5.2% | 0.9% |
| Growth | ||||||||||
| Revenue growth | 27.8% | 29.0% | 27.6% | 17.6% | 24.9% | 29.3% | 25.3% | 16.5% | 14.9% | 24.5% |
| Net income growth | — | — | — | — | — | — | — | 486.3% | −56.0% | −72.9% |
| EPS growth | — | — | — | — | — | — | — | 468.8% | −56.0% | −75.0% |
| FCF growth | 20.4% | 31.3% | −0.2% | −11.2% | 68.9% | 29.2% | 46.8% | 17.9% | 11.9% | 18.6% |
| Share count change | 4.0% | 1.2% | 3.1% | 2.5% | −0.6% | 2.3% | 15.8% | 3.4% | 0.1% | 7.8% |
| Financial health | ||||||||||
| Net debt / EBITDA | — | — | −13.8x | −24.5x | — | 0.5x | −0.6x | −1.7x | −1.8x | −0.8x |
| Debt / equity | 0.7x | 1.7x | 0.9x | 2.8x | 5.1x | — | 1.1x | 0.2x | 0.0x | 0.1x |
| Interest coverage | −6.8x | −3.5x | −0.6x | −2.0x | −1.9x | −6.9x | 14.2x | 82.4x | 414.3x | — |
| Current ratio | 1.7x | 2.0x | 1.8x | 1.9x | 0.9x | 0.8x | 0.8x | 0.9x | 0.9x | 0.9x |
| Quick ratio | 1.7x | 2.0x | 1.8x | 1.9x | 0.9x | 0.8x | 0.8x | 0.9x | 0.9x | 0.9x |
| Capital allocation | ||||||||||
| Capex / revenue | 9.3% | 4.9% | 4.5% | 6.3% | 2.7% | 3.5% | 2.1% | 2.0% | 2.7% | 3.8% |
| Stock comp / revenue | 26.9% | 21.9% | 19.6% | 19.3% | 21.0% | 18.4% | 15.6% | 13.4% | 14.0% | 15.5% |
| Payouts / FCF | 58.3% | 28.0% | 35.7% | 145.9% | 84.9% | 49.8% | 10.4% | 18.3% | 0.0% | 24.3% |
| Quality scores | ||||||||||
| Piotroski F-score | 4.0 | 5.0 | 5.0 | 4.0 | 4.0 | 5.0 | 8.0 | 7.0 | 5.0 | 4.0 |
| Altman Z'' | 0.8 | 2.0 | 1.4 | 1.4 | −1.0 | −1.5 | −0.7 | 0.5 | 1.1 | 1.5 |
| Accruals ratio | −34.0% | −24.7% | −18.1% | −16.6% | −20.7% | −20.0% | −17.5% | −3.9% | −11.9% | −11.8% |
Source: SEC EDGAR XBRL filings (CIK 0001327567). Data updated October 10, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.