Palo Alto Networks vs Twilio
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KIRA’s take AI analyst
I put Palo Alto Networks and Twilio side by side, using each one’s latest annual report. Here is what stands out:
- Palo Alto Networks is the larger business, with $11.5B of revenue in fiscal 2026 against $5.1B for Twilio, about 2.3 times as much.
- Palo Alto Networks grew revenue faster (24.5%, against 13.7%).
- Palo Alto Networks kept more of each dollar of sales as operating profit (6.1% operating margin, against 3.1%).
- Palo Alto Networks turned more of its sales into free cash flow (35.8% FCF margin, against 19.7%).
- Palo Alto Networks earned a higher return on the capital invested in it (2.6%, against 1.5%).
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Palo Alto Networks
PANW
7/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equity
Twilio
TWLO
4/11
5-year growthPiotroski F-scoreNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | PANW FY26 | TWLO FY25 |
|---|---|---|
| Size | ||
| Market cap | $298.3B | $42.1B |
| Revenue | $11.5B | $5.1B |
| Free cash flow | $4.1B | $997M |
| Net income | $307M | $33.8M |
| Growth | ||
| Revenue growth | 24.5% | 13.7% |
| 5-year growth | 22.0% | 23.5% |
| Share count change | 7.8% | −3.7% |
| Profitability | ||
| Gross margin | 70.4% | 48.9% |
| Operating margin | 6.1% | 3.1% |
| Net margin | 2.7% | 0.7% |
| FCF margin | 35.8% | 19.7% |
| Return on capital | 2.6% | 1.5% |
| Return on equity | 1.7% | 0.4% |
| Balance sheet | ||
| Net debt | −$1.3B | −$1.5B |
| Net debt / EBITDA | −0.8x | −4.2x |
| Dividends and buybacks | $1.0B | $869M |
| Valuation & quality | ||
| P/E | — | 36.7x |
| Piotroski F-score | 4 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.