ServiceNow vs Palo Alto Networks

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KIRA’s take AI analyst

I put ServiceNow and Palo Alto Networks side by side, using each one’s latest annual report. Here is what stands out:

ServiceNow is the larger business, with $13.3B of revenue in fiscal 2025 against $11.5B for Palo Alto Networks.
Palo Alto Networks grew revenue faster (24.5%, against 20.9%).
ServiceNow kept more of each dollar of sales as operating profit (13.7% operating margin, against 6.1%).
Palo Alto Networks turned more of its sales into free cash flow (35.8% FCF margin, against 34.5%).
ServiceNow earned a higher return on the capital invested in it (20.9%, against 2.6%).

Who comes out ahead

Of the 11 measures where higher (or lower) is clearly better, how many each company leads.

ServiceNow

NOW

9/11

5-year growthGross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDAShare count change

Palo Alto Networks

PANW

2/11

Revenue growthFCF margin

Side by side

Best in the row

Latest fiscal year	NOW FY25	PANW FY26
Size
Market cap	$163.6B	$298.3B
Revenue	$13.3B	$11.5B
Free cash flow	$4.6B	$4.1B
Net income	$1.7B	$307M
Growth
Revenue growth	20.9%	24.5%
5-year growth	24.1%	22.0%
Share count change	0.4%	7.8%
Profitability
Gross margin	77.5%	70.4%
Operating margin	13.7%	6.1%
Net margin	13.2%	2.7%
FCF margin	34.5%	35.8%
Return on capital	20.9%	2.6%
Return on equity	15.5%	1.7%
Balance sheet
Net debt	−$4.8B	−$1.3B
Net debt / EBITDA	−1.9x	−0.8x
Dividends and buybacks	$1.8B	$1.0B
Valuation & quality
P/E	98.9x	—
Piotroski F-score	6	4

Ten years

Revenue

FY17

NOW $1.9B

PANW $1.8B

FY18

NOW $2.6B

PANW $2.3B

FY19

NOW $3.5B

PANW $2.9B

FY20

NOW $4.5B

PANW $3.4B

FY21

NOW $5.9B

PANW $4.3B

FY22

NOW $7.2B

PANW $5.5B

FY23

NOW $9.0B

PANW $6.9B

FY24

NOW $11.0B

PANW $8.0B

FY25

NOW $13.3B

PANW $9.2B

FY26

NOW —

PANW $11.5B

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

NOW PANW

Operating margin

FY17

NOW −3.3%

PANW −9.4%

FY18

NOW −1.6%

PANW −4.6%

FY19

NOW 1.2%

PANW −1.9%

FY20

NOW 4.4%

PANW −5.3%

FY21

NOW 4.4%

PANW −7.2%

FY22

NOW 4.9%

PANW −3.4%

FY23

NOW 8.5%

PANW 5.6%

FY24

NOW 12.4%

PANW 8.5%

FY25

NOW 13.7%

PANW 13.5%

FY26

NOW —

PANW 6.1%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

NOW PANW

Free cash flow

FY17

NOW $492M

PANW $705M

FY18

NOW $587M

PANW $926M

FY19

NOW $971M

PANW $924M

FY20

NOW $1.4B

PANW $821M

FY21

NOW $1.8B

PANW $1.4B

FY22

NOW $2.2B

PANW $1.8B

FY23

NOW $2.7B

PANW $2.6B

FY24

NOW $3.4B

PANW $3.1B

FY25

NOW $4.6B

PANW $3.5B

FY26

NOW —

PANW $4.1B

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

NOW PANW

Return on capital

FY17

NOW —

PANW −17.2%

FY18

NOW —

PANW —

FY19

NOW 6.0%

PANW —

FY20

NOW 12.6%

PANW —

FY21

NOW 14.2%

PANW —

FY22

NOW 13.8%

PANW —

FY23

NOW 23.5%

PANW —

FY24

NOW 23.4%

PANW 27.9%

FY25

NOW 20.9%

PANW 20.8%

FY26

NOW —

PANW 2.6%

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

NOW PANW

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.