Palo Alto Networks

PANW · Nasdaq · Information Technology · Financials, fiscal 2017 to 2026

PANW · Last close · October 26, 2026

$390.46

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%.

Palo Alto Networks, Inc Latest fiscal year ended July 31, 2026 10-K filed September 10, 2026 · 0001327567-26-000023 Updated October 10, 2026

Revenue

$11.5B

24.5%

Operating margin

6.0%

7.4 pts

Net income

$307M

72.9%

Free cash flow

$4.1B

18.6%

Return on capital

2.6%

18.3 pts

Market cap

$298.3B

Oct 26 close

P/E

—

Over 200x

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

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.

Its biggest risks, as it describes them

Its heavy reliance on channel partners, mainly two distributors, to sell and deliver its products.
Prices of its products and subscriptions may fall, and customers may choose broader platforms from rivals.
Cloud and AI companies increasingly offering their own security and observability tools that compete with its offerings.
Acquisitions such as CyberArk may bring added risks, costs and integration problems.
Problems with the development or use of AI, and with its growth and results that vary from period to period.

From Palo Alto Networks's annual report on Form 10-K, filed September 10, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2023 to 2026, earnings per share fell 14.5% a year and net income 11.3% a year, as new shares raised the share count by 12% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Palo Alto Networks yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Palo Alto Networks' 10-K and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Palo Alto Networks' fiscal 2026 free cash flow of $4.1B, net cash of $1.3B at July 31, 2026 and 764 million diluted shares, from its filings. The scenarios are fitted to Palo Alto Networks: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 18.5% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Systems Software), plus 1 point for unsteady results (a loss in fiscal 2022); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2026.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at July 31, 2026. Negative means net debt.

Diluted shares, millions Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Palo Alto Networks's own revenue growth, as above. Cautious: growth of 9.5% then 6% a year, 2% after year 10, a 11% discount rate. Base: growth of 18.5% then 10.5% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $390.46
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Palo Alto Networks' earnings per share of $0.40 (in fiscal 2026). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 42×, the average of its peers' median and the Information Technology median for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$ Diluted earnings per share in fiscal 2026, from the 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: ServiceNow, Fortinet, Twilio, Gen Digital.

Earnings growth in the years ahead (% a year) Starts at Palo Alto Networks' revenue growth over the last 3 years, 18.5% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $390.46
Value at this multiple, against the last close: —

Company	Last close	Earnings per share	P/E today
ServiceNowNOW	$158.18	$1.60	98.9×
FortinetFTNT	$183.33	$2.83	64.8×
TwilioTWLO	$263.65	$7.19	36.7×
Gen DigitalGEN	$24.41	$1.71	14.3×
Palo Alto NetworksPANW	$390.46	$0.40	—

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	3,634	2,390	2,579	2,904	3,071
Debt incl. finance leases	3,677	1,992	964	0	1,774
Net debt (negative means net cash)	42	−398	−1,615	−2,904	−1,297
Net debt to EBITDA	0.5x	−0.6x	−1.7x	−1.8x	−0.8x
Debt to 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

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $10.0 million of Palo Alto Networks shares on the open market, and 8 insiders sold $133.4 million, $106.5 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 9, 2026	Aparna BawaDirector	Sold	250	$412.28	$103,070	Form 4
Oct 1, 2026	Josh D. PaulChief Accounting Officer	Sold plan	400	$395.70	$158,280	Form 4
Sep 24, 2026	Dipak GolechhaEVP, Chief Financial Officer	Sold plan	27,500	$391.61	$10.8 million	Form 4
Sep 24, 2026	Aparna BawaDirector	Sold	260	$392.69	$102,099	Form 4
Sep 17, 2026	James J GoetzDirector	Sold	20,000	$376.69	$7.5 million	Form 4
Sep 15, 2026	Aparna BawaDirector	Sold	500	$377.18	$188,590	Form 4
Sep 14, 2026	John P. KeyDirector	Sold	2,500	$376.03	$940,075	Form 4
Sep 14, 2026	Aparna BawaDirector	Sold	1,000	$373.61	$373,610	Form 4
Sep 1, 2026	Josh D. PaulChief Accounting Officer	Sold plan	900	$373.68	$336,312	Form 4
Aug 25, 2026	Josh D. PaulChief Accounting Officer	Sold plan	900	$353.77	$318,393	Form 4
Jul 7, 2026	Helle Thorning-SchmidtDirector	Sold	700	$346.85	$242,795	Form 4
Jul 1, 2026	Josh D. PaulChief Accounting Officer	Sold plan	900	$345.00	$310,500	Form 4

The latest 12 of 41 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	7 of 9	5 of 9	4 of 9
Accruals ratio	−3.9%	−11.8%	−11.8%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Palo Alto Networks side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Palo Alto Networks	FY26	24.5%	6.0%	35.8%	2.6%	−0.8x	4
ServiceNow	FY25	20.9%	13.7%	34.5%	20.9%	−1.9x	6	Compare
Fortinet	FY25	14.2%	30.7%	32.7%	—	−1.2x	5	Compare
Twilio	FY25	13.7%	3.1%	19.7%	1.5%	−4.2x	6	Compare
Gen Digital	FY26	27.1%	42.4%	30.5%	13.7%	3.0x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	1,762	2,273	2,900	3,408	4,256	5,502	6,893	8,027	9,221	11,480
Revenue growth	27.8%	29.0%	27.6%	17.6%	24.9%	29.3%	25.3%	16.5%	14.9%	24.5%
Gross profit	1,279	1,628	2,091	2,409	2,981	3,783	4,983	5,968	6,770	8,077
Research and development	347	401	540	768	1,140	1,418	1,604	1,810	1,984	2,552
Operating income	−166	−104	−54	−179	−304	−189	387	684	1,243	695
Net income	−203	−122	−82	−267	−499	−267	440	2,578	1,134	307
Diluted EPS (US$)	−0.37	−0.22	−0.14	−0.46	−0.86	−0.45	0.64	3.64	1.60	0.40
Diluted shares (millions)	544	550	567	581	578	591	684	708	709	764
Cash flow
Cash from operations	869	1,038	1,056	1,036	1,503	1,985	2,778	3,258	3,716	4,553
Capital expenditure	163	112	131	214	116	193	146	157	247	440
Free cash flow	705	926	924	821	1,387	1,792	2,631	3,101	3,469	4,113
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	411	259	330	1,198	1,178	892	273	567	0	1,000
Acquisitions	91	374	774	584	777	37	204	611	1,054	4,663
Stock-based compensation	474	497	568	658	894	1,011	1,074	1,076	1,295	1,774
Balance sheet at fiscal year end
Cash and short-term investments	744	3,403	2,803	3,748	2,901	3,634	2,390	2,579	2,904	3,071
Debt incl. finance leases	525	1,920	1,430	3,084	3,226	3,677	1,992	964	0	1,774
Total assets	3,438	5,949	6,592	9,065	10,242	12,254	14,501	19,991	23,576	48,460
Total liabilities	2,510	4,789	5,006	7,964	9,478	12,044	12,753	14,821	15,752	20,968
Shareholders' equity	760	1,160	1,586	1,102	634	210	1,748	5,169	7,824	27,492
Margins and ratios
Gross margin	72.6%	71.6%	72.1%	70.7%	70.0%	68.8%	72.3%	74.3%	73.4%	70.4%
Operating margin	−9.4%	−4.6%	−1.9%	−5.2%	−7.2%	−3.4%	5.6%	8.5%	13.5%	6.0%
Net margin	−11.5%	−5.4%	−2.8%	−7.8%	−11.7%	−4.8%	6.4%	32.1%	12.3%	2.7%
Free cash flow margin	40.0%	40.7%	31.9%	24.1%	32.6%	32.6%	38.2%	38.6%	37.6%	35.8%
Return on capital	−17.2%	—	—	—	—	—	—	27.9%	20.8%	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%	14.9%	5.2%	0.8%
Net debt to EBITDA	—	—	−13.8x	−24.5x	—	0.5x	−0.6x	−1.7x	−1.8x	−0.8x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Palo Alto Networks' Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Palo Alto Networks.