What is Palo Alto Networks, Inc.'s earnings per share (EPS)?

Palo Alto Networks, Inc. (PANW) reported diluted earnings per share of $0.40 for fiscal year 2026. This represents a -75.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Palo Alto Networks, Inc. (PANW) Financials

PANW

FY2026 annual

Revenue $11.5B +24.5% YoY

Net Income $307.0M -72.9% YoY

EPS (Diluted) $0.40 -75.0% YoY

Free Cash Flow $4.1B +18.6% YoY

Market Cap $332.7B as of Oct 5, 2026

Price / Sales 29.0x on $11.5B revenue, FY2026

Price / Earnings n/m outside the range published as a multiple, on $307.0M net income, FY2026

Price / Book 12.1x on $27.5B equity, Q4 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period FY2026, ended Jul 31, 2026 Reported Sep 10, 2026 Currency USD FYE July

Newest figures come from the 10-K for FY2026, filed Sep 10, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the PANW SEC filings page.

Palo Alto Networks, Inc. (PANW) reported $11.5B in revenue for fiscal year 2026, up 24.5% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI PANW FY2026 2026-10-04

Palo Alto Networks is growing rapidly, but FY2026 shows heavier operating costs and a goodwill-heavy asset base compressing reported profitability.

Revenue rose 24.6% in FY2026, yet operating margin fell from 13.5% to 6.1% as operating expenses expanded; growth therefore required materially more overhead rather than simply absorbing fixed costs.

Cash economics held up better than earnings: operating cash flow increased from $3.716B to $4.553B, even as net income fell sharply. Free cash flow reached $4.113B while depreciation and amortization rose to $855M, helping explain why FY2026 cash generation was stronger than reported profit.

The balance sheet became less debt-dependent on reported ratios—debt-to-equity fell from 2.0x to 0.8x—but short-term coverage remains tight because current ratio is 0.9x, below 1.0x. Total assets expanded to $48.5B, with goodwill at $22.0B, making asset composition an important part of the reported equity improvement.

Financial Health Signals

Financial Health Score 57/100

Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Palo Alto Networks, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability

Palo Alto Networks, Inc. has an operating margin of 6.0%, meaning the company retains $6 of operating profit per $100 of revenue. This results in a moderate score of 56/100, indicating healthy but not exceptional operating efficiency. This is down from 13.5% the prior year.

Growth

Palo Alto Networks, Inc.'s revenue surged 24.5% year-over-year to $11.5B, reflecting rapid business expansion. This strong growth earns a score of 82/100.

Leverage

Palo Alto Networks, Inc. has a moderate D/E ratio of 0.76. This balance of debt and equity financing earns a leverage score of 53/100.

Liquidity

Palo Alto Networks, Inc.'s current ratio of 0.87 is below the typical benchmark, resulting in a score of 14/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Palo Alto Networks, Inc. converts 35.8% of revenue into free cash flow ($4.1B). This strong cash generation earns a score of 97/100.

Returns

Palo Alto Networks, Inc.'s ROE of 1.1% shows moderate profitability relative to equity, earning a score of 40/100. This is down from 14.5% the prior year.

Altman Z-Score Safe

9.85

Palo Alto Networks, Inc. scores 9.85, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($332.7B) relative to total liabilities ($21.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial

3/8

Palo Alto Networks, Inc. passes 3 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.

Earnings Quality Cash-Backed

14.83x

For every $1 of reported earnings, Palo Alto Networks, Inc. generates $14.83 in operating cash flow ($4.6B OCF vs $307.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Earnings & Revenue

Revenue

$3.4B

YoY+34.5%

QoQ+13.6%

5Y CAGR+22.8%

10Y CAGR+23.9%

Palo Alto Networks, Inc. generated $3.4B in revenue in Q4 2026. This represents an increase of 34.5% from the same quarter a year earlier. Against the prior quarter it is up 13.6%.

EBITDA

$513.0M

YoY-11.7%

QoQ+239.7%

5Y CAGR+127.6%

Palo Alto Networks, Inc.'s EBITDA was $513.0M in Q4 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 11.7% from the same quarter a year earlier. Against the prior quarter it is up 239.7%.

Net Income

-$282.0M

YoY-211.0%

QoQ-59.3%

Palo Alto Networks, Inc. reported -$282.0M in net income in Q4 2026. This represents a decrease of 211.0% from the same quarter a year earlier. Against the prior quarter it is down 59.3%.

EPS (Diluted)

-$0.39

YoY-208.3%

QoQ-77.3%

Palo Alto Networks, Inc. earned -$0.39 per diluted share (EPS) in Q4 2026. This represents a decrease of 208.3% from the same quarter a year earlier. Against the prior quarter it is down 77.3%.

Cash & Balance Sheet

Free Cash Flow

$1.3B

YoY+34.3%

QoQ+59.1%

5Y CAGR+33.3%

10Y CAGR+22.0%

Palo Alto Networks, Inc. generated $1.3B in free cash flow in Q4 2026, representing cash available after capex. This represents an increase of 34.3% from the same quarter a year earlier. Against the prior quarter it is up 59.1%.

Cash & Debt

$2.5B

YoY+10.8%

QoQ+6.3%

5Y CAGR+6.0%

10Y CAGR+13.1%

Palo Alto Networks, Inc. held $2.5B in cash as of Q4 2026; long-term debt is not reported for that period.

Shares Outstanding

818M

YoY+22.3%

QoQ+0.4%

5Y CAGR+53.1%

10Y CAGR+24.6%

Palo Alto Networks, Inc. had 818M shares outstanding in Q4 2026. This represents an increase of 22.3% from the same quarter a year earlier. Against the prior quarter it is up 0.4%.

Dividends Per Share

Not reported for Q4 2026.

Margins & Returns

Gross Margin

67.6%

YoY-5.7pp

QoQ0.0pp

5Y change-3.0pp

10Y change-7.1pp

Palo Alto Networks, Inc.'s gross margin was 67.6% in Q4 2026, indicating the percentage of revenue retained after direct costs. This is down 5.7 percentage points from the same quarter a year earlier. It is unchanged from the prior quarter.

Operating Margin

5.0%

YoY-14.6pp

QoQ+11.1pp

5Y change+10.0pp

10Y change+10.7pp

Palo Alto Networks, Inc.'s operating margin was 5.0% in Q4 2026, reflecting core business profitability. This is down 14.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 11.1 percentage points.

Net Margin

-8.3%

YoY-18.3pp

QoQ-2.4pp

5Y change+1.5pp

10Y change-0.4pp

Palo Alto Networks, Inc.'s net profit margin was -8.3% in Q4 2026, showing the share of revenue converted to profit. This is down 18.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.4 percentage points.

Return on Equity

-1.0%

YoY-4.3pp

QoQ-0.4pp

5Y change+17.8pp

10Y change+2.5pp

Palo Alto Networks, Inc.'s ROE was -1.0% in Q4 2026, measuring profit generated per dollar of shareholder equity. This is down 4.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.

Capital Allocation

R&D Spending

$779.0M

YoY+54.6%

QoQ+6.1%

5Y CAGR+19.1%

10Y CAGR+26.1%

Palo Alto Networks, Inc. invested $779.0M in research and development in Q4 2026. This represents an increase of 54.6% from the same quarter a year earlier. Against the prior quarter it is up 6.1%.

Share Buybacks

Palo Alto Networks, Inc. repurchased no shares in Q4 2026.

Capital Expenditures

$103.0M

YoY+18.4%

QoQ+24.1%

5Y CAGR+30.3%

10Y CAGR+20.2%

Palo Alto Networks, Inc. invested $103.0M in capex in Q4 2026, funding long-term assets and infrastructure. This represents an increase of 18.4% from the same quarter a year earlier. Against the prior quarter it is up 24.1%.

PANW Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

PANW quarterly income statement

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Revenue	$11.5B+24.5%	$9.2B+14.9%	$8.0B+16.5%	$6.9B+25.3%	$5.5B+29.3%	$4.3B+24.9%	$3.4B+17.5%	$2.9B+27.6%	$2.3B+29.0%	$1.8B+27.8%	$1.4B+48.5%	$928.1M+55.1%	$598.2M+51.0%	$396.1M+55.3%	$255.1M
Cost of Revenue	$3.4B+38.8%	$2.5B+19.0%	$2.1B+7.8%	$1.9B+11.1%	$1.7B+34.8%	$1.3B+27.6%	$999.5M+23.6%	$808.4M+25.3%	$645.1M+35.4%	$476.4M+28.8%	$370.0M+47.1%	$251.5M+57.6%	$159.6M+45.4%	$109.8M+55.6%	$70.6M
Gross Profit	$8.1B+19.3%	$6.8B+13.4%	$6.0B+19.8%	$5.0B+31.7%	$3.8B+26.9%	$3.0B+23.8%	$2.4B+15.2%	$2.1B+28.4%	$1.6B+27.4%	$1.3B+26.8%	$1.0B+49.1%	$676.6M+54.3%	$438.6M+53.2%	$286.4M+55.1%	$184.6M
R&D Expenses	$2.6B+28.6%	$2.0B+9.6%	$1.8B+12.8%	$1.6B+13.1%	$1.4B+24.3%	$1.1B+48.5%	$768.1M+42.4%	$539.5M+34.6%	$400.7M+15.3%	$347.4M+22.2%	$284.2M+53.0%	$185.8M+77.3%	$104.8M+67.7%	$62.5M+62.0%	$38.6M
SG&A Expenses	$899.0M+102.9%	$443.0M-34.9%	$680.0M+51.9%	$447.7M+10.5%	$405.0M+3.6%	$391.1M+30.5%	$299.6M+14.4%	$261.8M+1.6%	$257.8M+30.0%	$198.3M+43.3%	$138.4M+36.2%	$101.6M+39.0%	$73.1M+71.1%	$42.7M+63.0%	$26.2M
Operating Income	$695.0M-44.1%	$1.2B+81.7%	$684.0M+76.6%	$387.3M+305.1%	-$188.8M+37.9%	-$304.1M-69.9%	-$179.0M-230.9%	-$54.1M+48.1%	-$104.2M+37.2%	-$165.8M-5.4%	-$157.3M-57.6%	-$99.8M+53.6%	-$215.3M-1056.2%	-$18.6M-578.6%	$3.9M
EBITDA	$1.6B-2.3%	$1.6B+63.8%	$968.0M+44.6%	$669.5M+613.8%	$93.8M+314.6%	-$43.7M-261.3%	$27.1M-72.8%	$99.7M+1378.2%	-$7.8M+92.6%	-$106.0M+7.4%	-$114.5M-61.5%	-$70.9M+63.8%	-$195.9M-2144.2%	-$8.7M-187.1%	$10.0M
Interest Expense	$0-100.0%	$3.0M-63.9%	$8.3M-69.5%	$27.2M-0.7%	$27.4M-83.2%	$163.3M+84.1%	$88.7M+5.7%	$83.9M+183.4%	$29.6M+20.8%	$24.5M+4.7%	$23.4M+4.9%	$22.3M+1073.7%	$1.9M+2467.6%	$74K+105.6%	$36K
Income Tax	$229.0M-50.4%	$462.0M+129.1%	-$1.6B-1355.9%	$126.6M+111.7%	$59.8M+76.4%	$33.9M-3.7%	$35.2M+382.2%	$7.3M-56.8%	$16.9M-26.2%	$22.9M+12.3%	$20.4M+117.0%	$9.4M+118.6%	$4.3M-59.4%	$10.6M+413.6%	$2.1M
Net Income	$307.0M-72.9%	$1.1B-56.0%	$2.6B+486.3%	$439.7M+264.7%	-$267.0M+46.5%	-$498.9M-86.9%	-$267.0M-226.0%	-$81.9M+33.0%	-$122.2M+39.8%	-$203.0M-5.3%	-$192.7M-46.8%	-$131.3M+42.0%	-$226.5M-674.5%	-$29.2M-4068.2%	$737K
EPS (Basic)	$0.41-76.0%	$1.71-57.7%	$4.04+453.4%	$0.73+181.1%	-$0.90+48.0%	-$1.73+37.3%	-$2.76-217.2%	-$0.87	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	$0.40-75.0%	$1.60	$3.64+468.8%	$0.64	-$0.90+48.0%	-$1.73	-$2.76-217.2%	-$0.87	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Diluted Shares (Avg)	764M+7.8%	709M	708M+3.4%	685M	296M+2.2%	289M	97M+2.5%	95M	N/A	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Revenue	$3.4B+34.5%	$3.0B+31.1%	$2.6B+14.9%	$2.5B+15.7%	$2.5B+15.9%	$2.3B+15.3%	$2.3B+14.3%	$2.1B+13.9%
Cost of Revenue	$1.1B+62.9%	$974.0M+57.4%	$685.0M+14.4%	$638.0M+15.2%	$679.0M+18.4%	$619.0M+20.5%	$599.0M+20.0%	$554.0M+17.2%
Gross Profit	$2.3B+24.1%	$2.0B+21.4%	$1.9B+15.1%	$1.8B+15.8%	$1.9B+14.9%	$1.7B+13.5%	$1.7B+12.3%	$1.6B+12.8%
R&D Expenses	$779.0M+54.6%	$734.0M+48.6%	$511.0M+1.2%	$528.0M+9.8%	$504.0M+1.7%	$494.0M+8.0%	$505.0M+12.7%	$481.0M+17.5%
SG&A Expenses	$226.0M+737.0%	$316.0M+92.7%	$178.0M+15.6%	$179.0M+82.7%	$27.0M-80.7%	$164.0M+38.3%	$154.0M-48.9%	$98.0M-18.4%
Operating Income	$172.0M-65.4%	-$183.0M-183.6%	$397.0M+64.7%	$309.0M+8.0%	$497.0M+108.4%	$219.0M+23.9%	$241.0M+349.6%	$286.0M+32.9%
EBITDA	$513.0M-11.7%	$151.0M-50.8%	$488.0M+48.8%	$398.0M+7.6%	$581.0M+84.3%	$307.0M+22.3%	$328.0M+168.4%	$370.0M+32.4%
Interest Expense	$0	$0-100.0%	$0-100.0%	$0-100.0%	$0-100.0%	$1.0M-56.5%	$1.0M-64.3%	$1.0M-65.5%
Income Tax	$13.0M-96.2%	$21.0M-57.1%	$117.0M+101.7%	$78.0M+358.8%	$338.0M+957.9%	$49.0M+277.5%	$58.0M+103.6%	$17.0M-80.8%
Net Income	-$282.0M-211.0%	-$177.0M-167.6%	$432.0M+61.8%	$334.0M-4.8%	$254.0M-29.1%	$262.0M-6.0%	$267.0M-84.7%	$351.0M+80.7%
EPS (Basic)	-$0.40-205.3%	-$0.22-156.4%	$0.61+48.8%	$0.49-9.3%	$0.38-29.6%	$0.39-9.3%	$0.41-85.0%	$0.54-14.3%
EPS (Diluted)	-$0.39-208.3%	-$0.22-159.5%	$0.61+60.5%	$0.47	$0.36	$0.37	$0.38	$0.49
Diluted Shares (Avg)	N/A	801M+13.3%	711M+0.3%	709M	N/A	707M	709M	709M

PANW Balance Sheet

PANW quarterly balance sheet

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Total Assets	$48.5B+105.5%	$23.6B+17.9%	$20.0B+37.9%	$14.5B+18.3%	$12.3B+19.6%	$10.2B+13.0%	$9.1B+37.5%	$6.6B+10.8%	$5.9B+73.0%	$3.4B+20.3%	$2.9B+45.4%	$2.0B+32.9%	$1.5B+152.5%	$585.6M+43.6%	$407.8M
Current Assets	$8.6B+14.9%	$7.5B+9.8%	$6.8B+13.3%	$6.0B-5.7%	$6.4B+38.0%	$4.6B-9.4%	$5.1B+40.0%	$3.7B-11.4%	$4.1B+109.4%	$2.0B+11.4%	$1.8B+65.2%	$1.1B+12.1%	$958.3M+80.9%	$529.7M+38.8%	$381.7M
Cash & Equivalents	$2.5B+10.8%	$2.3B+47.8%	$1.5B+35.2%	$1.1B-46.4%	$2.1B+13.0%	$1.9B-36.6%	$3.0B+207.7%	$961.4M-61.6%	$2.5B+236.8%	$744.3M+1.3%	$734.4M+95.4%	$375.8M-42.5%	$653.8M+110.5%	$310.6M-3.7%	$322.6M
Short-Term Investments	$557.0M-12.3%	$635.0M-39.2%	$1.0B-16.8%	$1.3B-17.2%	$1.5B+47.6%	$1.0B+30.0%	$789.8M-57.1%	$1.8B+105.4%	$896.5M+42.1%	$630.7M+14.4%	$551.2M+33.4%	$413.2M+248.1%	$118.7M+8.9%	$109.0M	$0
Inventory	$117.0M+3.5%	$113.0M-2.5%	$115.9M	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$3.6B+22.4%	$3.0B+13.2%	$2.6B+6.3%	$2.5B+15.0%	$2.1B+72.7%	$1.2B+19.6%	$1.0B+78.1%	$582.4M+24.7%	$467.0M+8.1%	$432.1M+23.9%	$348.7M+64.2%	$212.4M+56.7%	$135.5M+54.9%	$87.5M+91.6%	$45.6M
Long-Term Investments	$4.8B-13.0%	$5.6B+33.1%	$4.2B+36.9%	$3.0B+189.8%	$1.1B+18.4%	$888.3M+60.2%	$554.4M-3.6%	$575.4M+5.1%	$547.5M-30.6%	$789.3M+20.9%	$652.8M+21.2%	$538.8M+166.9%	$201.9M+1066.0%	$17.3M	$0
Goodwill	$22.0B+381.9%	$4.6B+36.3%	$3.4B+14.5%	$2.9B+6.5%	$2.7B+1.4%	$2.7B+49.5%	$1.8B+34.1%	$1.4B+158.7%	$522.8M+118.9%	$238.8M+46.1%	$163.5M0.0%	$163.5M+5.5%	$155.0M	$0	N/A
Total Liabilities	$21.0B+33.1%	$15.8B+6.3%	$14.8B+16.2%	$12.8B+5.9%	$12.0B+27.1%	$9.5B+19.0%	$8.0B+59.1%	$5.0B+4.5%	$4.8B+78.8%	$2.7B+36.4%	$2.0B+32.9%	$1.5B+46.3%	$1.0B+222.5%	$313.2M+75.2%	$178.7M
Current Liabilities	$9.9B+24.2%	$8.0B+4.0%	$7.7B-0.7%	$7.7B-6.8%	$8.3B+62.3%	$5.1B+90.1%	$2.7B+31.1%	$2.1B-2.3%	$2.1B+75.0%	$1.2B+41.9%	$846.8M-18.0%	$1.0B+196.5%	$348.2M+68.9%	$206.1M+68.9%	$122.0M
Non-Current Liabilities	$11.0B+42.3%	$7.8B+8.8%	$7.1B+42.3%	$5.0B+34.2%	$3.7B-14.3%	$4.4B-17.3%	$5.3B+78.6%	$3.0B+9.9%	$2.7B+81.9%	$1.5B+32.3%	$1.1B+150.8%	$445.1M-32.7%	$661.7M+517.9%	$107.1M+88.8%	$56.7M
Long-Term Debt	N/A	N/A	N/A	$2.0B-45.8%	$3.7B+14.0%	$3.2B+4.6%	$3.1B+115.7%	$1.4B-25.5%	$1.9B+265.9%	$524.7M+4.9%	$500.2M+2.7%	$487.1M+4.3%	$466.9M	N/A	N/A
Total Equity	$27.5B+251.4%	$7.8B+51.4%	$5.2B+195.7%	$1.7B+732.4%	$210.0M-66.9%	$634.5M-42.4%	$1.1B-30.5%	$1.6B+36.7%	$1.2B+52.8%	$759.6M-15.1%	$894.9M+83.4%	$487.9M+4.1%	$468.6M+72.0%	$272.4M+18.9%	$229.1M
Retained Earnings	$2.8B+12.4%	$2.5B+84.0%	$1.4B+210.0%	-$1.2B+26.4%	-$1.7B0.0%	-$1.7B-42.7%	-$1.2B-29.6%	-$900.9M-13.9%	-$790.7M+5.5%	-$836.7M-34.6%	-$621.6M-24.1%	-$500.7M-49.1%	-$335.7M-207.2%	-$109.3M-36.5%	-$80.0M

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Total Assets	$48.5B+105.5%	$46.3B+110.3%	$25.0B+19.2%	$23.5B+15.5%	$23.6B+17.9%	$22.0B+22.7%	$21.0B+14.5%	$20.4B+37.6%
Current Assets	$8.6B+14.9%	$7.7B+11.8%	$8.4B+32.0%	$7.3B+17.1%	$7.5B+9.8%	$6.9B+16.6%	$6.3B-1.7%	$6.2B-3.6%
Cash & Equivalents	$2.5B+10.8%	$2.4B-0.8%	$4.2B+86.8%	$3.1B+34.3%	$2.3B+47.8%	$2.4B+73.5%	$2.2B+24.9%	$2.3B-8.4%
Short-Term Investments	$557.0M-12.3%	$747.0M-18.5%	$378.0M-62.4%	$1.1B+3.2%	$635.0M-39.2%	$916.8M-39.6%	$1.0B-36.6%	$1.1B-21.0%
Inventory	$117.0M+3.5%	N/A	N/A	N/A	$113.0M-2.5%	N/A	N/A	N/A
Accounts Receivable	$3.6B+22.4%	$2.9B+46.3%	$2.1B+41.5%	$1.3B+18.5%	$3.0B+13.2%	$1.9B+13.7%	$1.5B-21.1%	$1.1B-19.8%
Long-Term Investments	$4.8B-13.0%	$3.9B-24.7%	$3.4B-26.3%	$6.0B+45.2%	$5.6B+33.1%	$5.2B+47.0%	$4.6B+26.0%	$4.1B+37.8%
Goodwill	$22.0B+381.9%	$21.9B+440.7%	$6.9B+71.1%	$4.6B+12.7%	$4.6B+36.3%	$4.1B+20.1%	$4.1B+20.1%	$4.1B+38.4%
Total Liabilities	$21.0B+33.1%	$18.6B+25.9%	$15.6B+6.9%	$14.9B+2.8%	$15.8B+6.3%	$14.8B+9.7%	$14.6B+4.6%	$14.5B+14.4%
Current Liabilities	$9.9B+24.2%	$9.0B+16.9%	$8.0B+6.0%	$7.4B+0.2%	$8.0B+4.0%	$7.7B+8.8%	$7.6B-2.7%	$7.4B-1.5%
Non-Current Liabilities	$11.0B+42.3%	$9.6B+35.7%	$7.6B+7.9%	$7.5B+5.6%	$7.8B+8.8%	$7.1B+10.8%	$7.0B+13.9%	$7.1B+37.8%
Total Equity	$27.5B+251.4%	$27.7B+282.7%	$9.4B+47.3%	$8.7B+46.6%	$7.8B+51.4%	$7.2B+61.8%	$6.4B+46.3%	$5.9B+172.4%
Retained Earnings	$2.8B+12.4%	$3.1B+37.8%	$3.3B+65.1%	$2.8B+65.7%	$2.5B+84.0%	$2.2B+124.7%	$2.0B+175.8%	$1.7B+264.6%

Not reported in any period shown, so not listed: Long-Term Debt.

PANW Cash Flow Statement

PANW quarterly cash flow statement

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Operating Cash Flow	$4.6B+22.5%	$3.7B+14.1%	$3.3B+17.3%	$2.8B+39.9%	$2.0B+32.0%	$1.5B+45.1%	$1.0B-1.9%	$1.1B+1.7%	$1.0B+19.5%	$868.8M+31.9%	$658.6M+86.7%	$352.8M+299.1%	$88.4M-22.8%	$114.5M+48.0%	$77.4M
Depreciation & Amortization	$855.0M+149.3%	$343.0M+20.8%	$284.0M+0.6%	$282.2M-0.1%	$282.6M+8.5%	$260.4M+26.3%	$206.1M+34.0%	$153.8M+59.5%	$96.4M+61.2%	$59.8M+39.7%	$42.8M+48.1%	$28.9M+49.0%	$19.4M+96.1%	$9.9M+61.3%	$6.1M
Stock-Based Compensation	$1.8B+37.0%	$1.3B+20.4%	$1.1B+0.1%	$1.1B+6.3%	$1.0B+13.0%	$894.5M+35.9%	$658.4M+16.0%	$567.7M+14.3%	$496.7M+4.7%	$474.5M+20.8%	$392.8M+77.5%	$221.3M+121.7%	$99.8M+128.4%	$43.7M+215.8%	$13.8M
Capital Expenditures	$440.0M+78.1%	$247.0M+57.3%	$157.0M+7.3%	$146.3M-24.1%	$192.8M+66.2%	$116.0M-45.9%	$214.4M+63.4%	$131.2M+17.1%	$112.0M-31.5%	$163.4M+125.4%	$72.5M+114.5%	$33.8M-6.4%	$36.1M+60.9%	$22.4M+54.1%	$14.6M
Free Cash Flow	$4.1B+18.6%	$3.5B+11.9%	$3.1B+17.9%	$2.6B+46.8%	$1.8B+29.2%	$1.4B+68.9%	$821.3M-11.2%	$924.4M-0.2%	$926.1M+31.3%	$705.4M+20.4%	$586.1M+83.7%	$319.0M+509.9%	$52.3M-43.2%	$92.1M+46.6%	$62.8M
Investing Cash Flow	-$3.1B-40.8%	-$2.2B-46.0%	-$1.5B+25.8%	-$2.0B-117.9%	-$933.4M+37.0%	-$1.5B-614.1%	$288.0M+115.8%	-$1.8B-251.1%	-$520.0M-10.0%	-$472.6M-39.5%	-$338.9M+50.1%	-$679.0M-112.0%	-$320.3M-111.3%	-$151.6M-940.6%	-$14.6M
Financing Cash Flow	-$1.2B-54.3%	-$779.0M+42.0%	-$1.3B+22.2%	-$1.7B-114.0%	-$806.6M+26.9%	-$1.1B-264.0%	$673.0M+187.0%	-$773.9M-162.1%	$1.2B+422.7%	-$386.0M-1092.3%	$38.9M-19.3%	$48.2M-91.6%	$575.1M+2198.7%	$25.0M-88.6%	$219.3M
Share Buybacks	$1.0B	$0-100.0%	$567.0M+107.9%	$272.7M-69.4%	$892.3M-24.3%	$1.2B-1.7%	$1.2B+263.1%	$330.0M+27.4%	$259.1M-37.0%	$411.0M	$0	$0-100.0%	$132K+69.2%	$78K-4.9%	$82K

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Operating Cash Flow	$1.4B+32.9%	$871.0M+38.7%	$554.0M-0.5%	$1.8B+17.3%	$1.0B+99.0%	$628.0M+18.7%	$557.0M-19.3%	$1.5B-1.0%
Depreciation & Amortization	$341.0M+306.0%	$334.0M+279.5%	$91.0M+4.6%	$89.0M+6.0%	$84.0M+9.4%	$88.0M+18.4%	$87.0M+26.8%	$84.0M+30.6%
Stock-Based Compensation	N/A	$684.0M+109.8%	$301.0M-5.9%	$370.0M+25.4%	N/A	$326.0M+23.7%	$320.0M+16.2%	$295.0M+8.9%
Capital Expenditures	$103.0M+18.4%	$83.0M+22.1%	$170.0M+254.2%	$84.0M+90.9%	$87.0M+82.8%	$68.0M+81.8%	$48.0M+36.4%	$44.0M+19.6%
Free Cash Flow	$1.3B+34.3%	$788.0M+40.7%	$384.0M-24.6%	$1.7B+15.1%	$934.0M+100.6%	$560.0M+13.9%	$509.0M-22.3%	$1.5B-1.6%
Investing Cash Flow	-$1.0B-31.8%	-$1.8B-241.6%	$651.0M+270.9%	-$983.0M-80.7%	-$763.0M-352.6%	-$517.0M-557.1%	-$381.0M+71.3%	-$544.0M-321.7%
Financing Cash Flow	-$197.0M+47.3%	-$899.0M-2012.8%	-$114.0M+50.9%	$8.0M+103.6%	-$374.0M-108.7%	$47.0M+104.5%	-$232.0M-219.6%	-$220.0M-426.3%
Share Buybacks	$0	N/A	N/A	N/A	$0-100.0%	$0-100.0%	$0	$0-100.0%

Not reported in any period shown, so not listed: Dividends Paid.

PANW Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

PANW quarterly financial ratios

Metric	FY2610-K	FY2510-K	FY2410-K	FY2310-K	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K	FY1710-K	FY1610-K	FY1510-K	FY1410-K	FY1310-K	FY1210-K
Gross Margin	70.4%-3.1pp	73.4%-0.9pp	74.4%+2.1pp	72.3%+3.5pp	68.8%-1.3pp	70.0%-0.6pp	70.7%-1.4pp	72.1%+0.5pp	71.6%-0.9pp	72.6%-0.6pp	73.2%+0.3pp	72.9%-0.4pp	73.3%+1.0pp	72.3%-0.1pp	72.4%
Operating Margin	6.0%-7.4pp	13.5%+5.0pp	8.5%+2.9pp	5.6%+9.0pp	-3.4%+3.7pp	-7.1%-1.9pp	-5.3%-3.4pp	-1.9%+2.7pp	-4.6%+4.8pp	-9.4%+2.0pp	-11.4%-0.7pp	-10.8%+25.2pp	-36.0%-31.3pp	-4.7%-6.2pp	1.5%
Net Margin	2.7%-9.6pp	12.3%-19.8pp	32.1%+25.7pp	6.4%+11.2pp	-4.9%+6.9pp	-11.7%-3.9pp	-7.8%-5.0pp	-2.8%+2.6pp	-5.4%+6.1pp	-11.5%+2.5pp	-14.0%+0.2pp	-14.1%+23.7pp	-37.9%-30.5pp	-7.4%-7.7pp	0.3%
Return on Equity	1.1%-13.4pp	14.5%-35.4pp	49.9%+24.7pp	25.1%+152.3pp	-127.1%-48.5pp	-78.6%-54.4pp	-24.2%-19.1pp	-5.2%+5.4pp	-10.5%+16.2pp	-26.7%-5.2pp	-21.5%+5.4pp	-26.9%+21.4pp	-48.3%-37.6pp	-10.7%-11.1pp	0.3%
Return on Assets	0.6%-4.2pp	4.8%-8.1pp	12.9%+9.9pp	3.0%+5.2pp	-2.2%+2.7pp	-4.9%-1.9pp	-2.9%-1.7pp	-1.2%+0.8pp	-2.1%+3.8pp	-5.9%+0.8pp	-6.7%-0.1pp	-6.7%+8.6pp	-15.3%-10.3pp	-5.0%-5.2pp	0.2%
Current Ratio	0.87-0.1x	0.94+0.1x	0.89+0.1x	0.780.0x	0.77-0.1x	0.91-1.0x	1.91+0.1x	1.78-0.2x	1.97+0.3x	1.65-0.4x	2.09+1.1x	1.04-1.7x	2.75+0.2x	2.57-0.6x	3.13
Debt-to-Equity	0.76-1.3x	2.01-0.9x	2.87+1.7x	1.14-16.4x	17.51+12.4x	5.08+2.3x	2.80+1.9x	0.90-0.8x	1.65+1.0x	0.69+0.1x	0.56-0.4x	1.000.0x	1.00-0.2x	1.15+0.4x	0.78
Asset Turnover	0.24-0.2x	0.390.0x	0.40-0.1x	0.480.0x	0.450.0x	0.420.0x	0.38-0.1x	0.44+0.1x	0.38-0.1x	0.510.0x	0.480.0x	0.47+0.1x	0.40-0.3x	0.68+0.1x	0.63
FCF Margin	35.8%-1.8pp	37.6%-1.0pp	38.6%+0.5pp	38.2%+5.6pp	32.6%0.0pp	32.6%+8.5pp	24.1%-7.8pp	31.9%-8.9pp	40.7%+0.7pp	40.0%-2.5pp	42.5%+8.2pp	34.4%+25.6pp	8.7%-14.5pp	23.3%-1.4pp	24.6%

Metric	Q4'2610-K	Q3'2610-Q	Q2'2610-Q	Q1'2610-Q	Q4'2510-K	Q3'2510-Q	Q2'2510-Q	Q1'2510-Q
Gross Margin	67.6%-5.7pp	67.5%-5.4pp	73.6%+0.1pp	74.2%+0.1pp	73.2%-0.6pp	73.0%-1.2pp	73.5%-1.3pp	74.1%-0.7pp
Operating Margin	5.0%-14.6pp	-6.1%-15.7pp	15.3%+4.6pp	12.5%-0.9pp	19.6%+8.7pp	9.6%+0.7pp	10.7%+8.0pp	13.4%+1.9pp
Net Margin	-8.3%-18.3pp	-5.9%-17.3pp	16.7%+4.8pp	13.5%-2.9pp	10.0%-6.3pp	11.5%-2.6pp	11.8%-76.6pp	16.4%+6.1pp
Return on Equity	-1.0%-4.3pp	-0.6%-4.3pp	4.6%+0.4pp	3.9%-2.1pp	3.3%-3.7pp	3.6%-2.6pp	4.2%-35.9pp	5.9%-3.0pp
Return on Assets	-0.6%-1.7pp	-0.4%-1.6pp	1.7%+0.5pp	1.4%-0.3pp	1.1%-0.7pp	1.2%-0.4pp	1.3%-8.3pp	1.7%+0.4pp
Current Ratio	0.87-0.1x	0.860.0x	1.04+0.2x	0.99+0.1x	0.94+0.1x	0.90+0.1x	0.840.0x	0.840.0x
Debt-to-Equity	0.76-1.3x	0.67-1.4x	1.66-0.6x	1.72-0.7x	2.01-0.9x	2.04-1.0x	2.29-0.9x	2.45-3.4x
Asset Turnover	0.070.0x	0.060.0x	0.100.0x	0.110.0x	0.110.0x	0.100.0x	0.110.0x	0.100.0x
FCF Margin	36.8%-0.1pp	26.3%+1.8pp	14.8%-7.8pp	68.2%-0.4pp	36.8%+15.6pp	24.5%-0.3pp	22.6%-10.6pp	68.5%-10.8pp

Note: The current ratio is below 1.0 (0.87), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
Palo Alto Networks, Inc. PANW	FY2026	$11.5B	$307.0M	2.7%	$332.7B	57/100
CrowdStrike Holdings CRWD	FY2026	$4.8B	-$161.2M	-3.4%	$276.5B	63/100
Fortinet, Inc. FTNT	FY2025	$6.8B	$1.9B	27.3%	$132.8B	78/100
Synopsys Inc SNPS	FY2025	$7.1B	$1.3B	18.9%	$93.9B	57/100
Cloudflare, Inc. NET	FY2025	$2.2B	-$102.3M	-4.7%	$124.3B	52/100
Zscaler, Inc. ZS	FY2026	$3.4B	-$63.2M	-1.9%	$32.1B	53/100

Where Palo Alto Networks, Inc. Ranks

Frequently Asked Questions

What is Palo Alto Networks, Inc.'s annual revenue?

Palo Alto Networks, Inc. (PANW) reported $11.5B in total revenue for fiscal year 2026. This represents a 24.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Palo Alto Networks, Inc.'s revenue growing?

Palo Alto Networks, Inc. (PANW) revenue grew by 24.5% year-over-year, from $9.2B to $11.5B in fiscal year 2026.

Is Palo Alto Networks, Inc. profitable?

Yes, Palo Alto Networks, Inc. (PANW) reported a net income of $307.0M in fiscal year 2026, with a net profit margin of 2.7%.

What is Palo Alto Networks, Inc.'s EBITDA?

Palo Alto Networks, Inc. (PANW) had EBITDA of $1.6B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

What is Palo Alto Networks, Inc.'s gross margin?

Palo Alto Networks, Inc. (PANW) had a gross margin of 70.4% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

What is Palo Alto Networks, Inc.'s operating margin?

Palo Alto Networks, Inc. (PANW) had an operating margin of 6.0% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

What is Palo Alto Networks, Inc.'s net profit margin?

Palo Alto Networks, Inc. (PANW) had a net profit margin of 2.7% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

What is Palo Alto Networks, Inc.'s return on equity (ROE)?

Palo Alto Networks, Inc. (PANW) has a return on equity of 1.1% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

What is Palo Alto Networks, Inc.'s free cash flow?

Palo Alto Networks, Inc. (PANW) generated $4.1B in free cash flow during fiscal year 2026. This represents a 18.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Palo Alto Networks, Inc.'s operating cash flow?

Palo Alto Networks, Inc. (PANW) generated $4.6B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

What are Palo Alto Networks, Inc.'s total assets?

Palo Alto Networks, Inc. (PANW) had $48.5B in total assets as of fiscal year 2026, including both current and long-term assets.

What are Palo Alto Networks, Inc.'s capital expenditures?

Palo Alto Networks, Inc. (PANW) invested $440.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

How much does Palo Alto Networks, Inc. spend on research and development?

Palo Alto Networks, Inc. (PANW) invested $2.6B in research and development during fiscal year 2026.

Does Palo Alto Networks, Inc. buy back shares?

Yes, Palo Alto Networks, Inc. (PANW) spent $1.0B on share buybacks during fiscal year 2026, returning capital to shareholders by reducing shares outstanding.

How many shares does Palo Alto Networks, Inc. have outstanding?

Palo Alto Networks, Inc. (PANW) had 818M shares outstanding as of fiscal year 2026.

What is Palo Alto Networks, Inc.'s current ratio?

Palo Alto Networks, Inc. (PANW) had a current ratio of 0.87 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.

What is Palo Alto Networks, Inc.'s debt-to-equity ratio?

Palo Alto Networks, Inc. (PANW) had a debt-to-equity ratio of 0.76 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Palo Alto Networks, Inc.'s return on assets (ROA)?

Palo Alto Networks, Inc. (PANW) had a return on assets of 0.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

What is Palo Alto Networks, Inc.'s P/E ratio?

Palo Alto Networks, Inc. (PANW) has no price-to-earnings ratio at the moment: outside the range published as a multiple (on $307.0M net income, FY2026). The market capitalization is $332.7B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Palo Alto Networks, Inc.'s price-to-sales ratio?

Palo Alto Networks, Inc. (PANW) trades at 29.0x sales, its market capitalization divided by revenue of $11.5B revenue, FY2026. The market capitalization is $332.7B as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

What is Palo Alto Networks, Inc.'s Altman Z-Score?

Palo Alto Networks, Inc. (PANW) has an Altman Z-Score of 9.85, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Palo Alto Networks, Inc.'s Piotroski F-Score?

Palo Alto Networks, Inc. (PANW) has a Piotroski F-Score of 3 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Palo Alto Networks, Inc.'s earnings high quality?

Palo Alto Networks, Inc. (PANW) has an earnings quality ratio of 14.83x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Palo Alto Networks, Inc.?

Palo Alto Networks, Inc. (PANW) scores 57 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.