PANW Nasdaq Systems Software Financials FY2017βFY2026
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.
Hi! I read Palo Alto Networksβs latest annual report (fiscal 2026). Here is what stands out:
Good So-so Weak
Are sales growing?
+24.5%
Yes. Sales grew 24.5% last year.
Does it make a profit?
2.7%
A little. It keeps 2.7% of every sale as profit.
Does profit turn into cash?
35.8%
Yes. 35.8% of sales ends up as free cash.
Is debt under control?
Net cash
Yes. It has more cash than debt.
How healthy are the accounts?
4 / 9
Mixed. It passes 4 of 9 health tests.
Rules of thumb on reported numbers. A starting point, not a recommendation.
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.
Is it selling more, and how much does it keep?
In plain words: Every quarter, companies publish how much they sold and earned. These are the days Palo Alto Networks did it, and the next one. Share prices often move a lot on those days.
Next results
November 18, 2026
Wednesday Β· in 24 days
| Date | Results for | Time | Source |
|---|---|---|---|
| Sep 1, 2026 | Q4 '26 | After the market closes | 8-K β |
| Jun 2, 2026 | Q3 '26 | After the market closes | 8-K β |
| Feb 17, 2026 | Q2 '26 | After the market closes | 8-K β |
| Nov 19, 2025 | Q1 '26 | After the market closes | 8-K β |
| Aug 13, 2025 | Q4 '25 | Time not announced | 8-K β |
| May 20, 2025 | Q3 '25 | After the market closes | 8-K β |
| Feb 13, 2025 | Q2 '25 | After the market closes | 8-K β |
| Nov 20, 2024 | Q1 '25 | After the market closes | 8-K β |
From SEC filings: the results press release (8-K) or, without one, the quarterly or annual report.
KIRA Β· Palo Alto Networks had $11.5B of revenue in fiscal 2026, up 24.5% on the year before. Over five years, revenue changed +22.0% a year on average. Its operating margin was 6.1%, down 7.4Β pts: of every 100 in sales, about 6 is left after running the business.
In plain words: Revenue is all the money customers paid. The margins show how many cents of each dollar of sales are left over at each step: after making the product (gross), after running the business (operating) and after everything, tax included (net).
Revenue
Revenue
Margins, % of revenue
Margins, % of revenue
KIRA Β· Palo Alto Networks made $307M of net profit in fiscal 2026.
Loss periods are shown in red.
In plain words: Net income is the profit left after every cost and tax. Earnings per share (EPS) splits that profit across every share, so it shows what one share earned.
Net income
Net income
Diluted EPS
Diluted EPS
How much cash comes in, and where does it go?
KIRA Β· Free cash flow was $4.1B in fiscal 2026, 35.8% of revenue.
Cash from operations minus capital spending.
In plain words: Profit on paper is not the same as cash in the bank. Free cash flow is the cash left after paying to run and maintain the business: the money it can hand back to shareholders, save or invest.
Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations vs capital spending
KIRA Β· Palo Alto Networks returned $1.0B to shareholders in fiscal 2026, 24% of free cash flow. The diluted share count rose 7.8%.
In plain words: Companies hand cash back in two ways: dividends (cash paid to shareholders) and buybacks (buying back their own shares, so each remaining share owns a bigger slice).
Dividends and buybacks
Dividends and buybacks
Diluted shares outstanding (annual)
KIRA Β· In the last 12 months, insiders sold $21.4M of shares on the open market and bought none.
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. βPlanβ marks trades under a pre-arranged Rule 10b5-1 plan.
In plain words: Insiders are the people who run or own a big part of the company. Buying with their own money can signal confidence; selling often has personal reasons, like taxes or diversifying.
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 |
Can it carry its debts, and how well does it use its money?
KIRA Β· Palo Alto Networks has $1.3B more cash than debt.
Cash, debt and the ratios that show how comfortably Palo Alto Networks can carry it.
In plain words: What the company owns and what it owes. More cash than debt is a cushion for bad times; a lot of debt leaves less room when business slows down.
Cash vs debt (incl. leases)
| 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 | β0.6x | β1.7x | β1.8x | β0.8x |
| Debt / equity | β | 1.1x | 0.2x | 0.0x | 0.1x |
| Interest coverage | β6.9x | 14.2x | 82.4x | 414.3x | β |
| 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 (β = net cash) | $42.3M | β$399M | β$1.6B | β$2.9B | β$1.3B |
KIRA Β· Its return on capital was 2.6%: every 100 invested in the business earned about 3 in a year.
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
In plain words: How much profit the business makes on the money put into it. A higher percentage means each dollar invested works harder.
Return on capital, equity and assets (annual)
KIRA Β· Palo Alto Networks passes 4 of 9 financial health tests (Piotroski F-score).
Nine pass/fail tests of profitability, funding and efficiency. 8β9 is strong, 0β2 weak.
In plain words: Nine yes/no tests of financial health, one point each. A green tick is a pass: 7 to 9 points is solid, 0 to 3 is weak.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | β | β | β |
| Cash from operations is positive | β | β | β |
| Return on assets rose | β | β | β |
| Cash from operations exceeds net income | β | β | β |
| Debt fell relative to assets | β | β | β |
| Current ratio rose | β | β | β |
| Share count didn't rise | β | β | β |
| Gross margin rose | β | β | β |
| Revenue rose relative to assets | β | β | β |
| F-score | 7 / 9 | 5 / 9 | 4 / 9 |
| Accruals ratio | β3.9% | β11.9% | β11.8% |
| Altman Z'' | 0.54 | 1.09 | 1.49 |
What does the share cost, and how does it compare?
KIRA Β· At $380.55 a share, the company is worth $290.7B.
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets β the answer depends entirely on what you put in.
In plain words: Move the sliders to try your own guesses about growth. The result is what one share would be worth if those guesses came true. Different guesses give very different answers.
Value per share
β
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.
Value per share
β
Reference multiples: today β Β· peers 50.0x Β· sector 33.3x.
KIRA Β· Palo Alto Networks grew sales faster than 3 of its 4 similar companies.
Each companyβs latest fiscal year. Fiscal years end in different months, so periods donβt line up exactly.
In plain words: The same numbers for similar companies, so you can tell whether a figure is high or low for this kind of business.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Palo Alto Networks PANW | $290.7B | 24.5% | 6.1% | 35.8% | 2.6% | β | 4 | |
| ServiceNow NOW | $164.4B | 20.9% | 13.7% | 34.5% | 20.9% | 99.4x | 6 | Compare β |
| Fortinet FTNT | $133.2B | 14.2% | 30.7% | 32.7% | β | 63.6x | 5 | Compare β |
| Twilio TWLO | $41.8B | 13.7% | 3.1% | 19.7% | 1.5% | 36.4x | 6 | Compare β |
| Gen Digital GEN | $15.0B | 27.1% | 42.4% | 30.5% | 13.7% | 14.5x | 7 | Compare β |
Every number, year by year.
Amounts in USD. Hover a ratioβs name for its definition.
In plain words: Every number we have, year by year. Download it as a spreadsheet if you want to dig deeper.
| 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 | β$166M | β$104M | β$54.1M | β$179M | β$304M | β$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 | β$180M | β$105M | β$74.6M | β$232M | β$465M | β$207M | $566M | $988M | $1.6B | $536M |
| Income tax | $22.9M | $16.9M | $7.3M | $35.2M | $33.9M | $59.8M | $127M | β$1.6B | $462M | $229M |
| Net income | β$203M | β$122M | β$81.9M | β$267M | β$499M | β$267M | $440M | $2.6B | $1.1B | $307M |
| Diluted EPS | β$0.37 | β$0.22 | β$0.14 | β$0.46 | β$0.86 | β$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 | β9.4% | β4.6% | β1.9% | β5.3% | β7.2% | β3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| EBITDA margin | β6.0% | β0.3% | 3.4% | 0.8% | β1.0% | 1.7% | 9.7% | 12.1% | 17.2% | 13.5% |
| Net margin | β11.5% | β5.4% | β2.8% | β7.8% | β11.7% | β4.9% | 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 | β17.2% | β | β | β | β | β | β | 27.9% | 20.8% | 2.6% |
| Return on capital employed | β7.8% | β3.4% | β1.3% | β3.3% | β5.3% | β4.2% | 7.2% | 7.2% | 8.9% | 2.6% |
| Return on equity | β24.5% | β12.7% | β6.0% | β19.9% | β57.5% | β | 44.9% | 74.5% | 17.5% | 1.7% |
| Return on assets | β6.5% | β2.6% | β1.3% | β3.4% | β5.2% | β2.4% | 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 | β | β | β | β | β | β | β | 486.3% | β56.0% | β72.9% |
| EPS growth | β | β | β | β | β | β | β | 468.8% | β56.0% | β75.0% |
| FCF growth | 20.4% | 31.3% | β0.2% | β11.2% | 68.9% | 29.2% | 46.8% | 17.9% | 11.9% | 18.6% |
| Share count change | 4.0% | 1.2% | 3.1% | 2.5% | β0.6% | 2.3% | 15.8% | 3.4% | 0.1% | 7.8% |
| Financial health | ||||||||||
| Net debt / EBITDA | β | β | β13.8x | β24.5x | β | 0.5x | β0.6x | β1.7x | β1.8x | β0.8x |
| Debt / equity | 0.7x | 1.7x | 0.9x | 2.8x | 5.1x | β | 1.1x | 0.2x | 0.0x | 0.1x |
| Interest coverage | β6.8x | β3.5x | β0.6x | β2.0x | β1.9x | β6.9x | 14.2x | 82.4x | 414.3x | β |
| 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 | β1.0 | β1.5 | β0.7 | 0.5 | 1.1 | 1.5 |
| Accruals ratio | β34.0% | β24.7% | β18.1% | β16.6% | β20.7% | β20.0% | β17.5% | β3.9% | β11.9% | β11.8% |
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 β not investment advice. Check the original filings before relying on any figure.
