What is Palo Alto's earnings per share (EPS)?

Palo Alto (PANW) reported diluted earnings per share of $1.60 for fiscal year 2025. This represents a -56.0% 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 Financials

PANW

Source SEC Filings (10-K/10-Q) Updated Jan 31, 2026 Currency USD FYE July

This page shows Palo Alto (PANW) financial statements, including the 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 FY2025 2026-04-22

High-margin revenue is increasingly turning into cash and operating profit as leverage on the balance sheet fades.

From FY2023 to FY2025, free cash flow margin stayed near 38.0% even as the company kept scaling. Over the same span, gross margin eased to 73.4% while R&D climbed to $2.0B, so the profit improvement is coming less from richer unit economics and more from overhead absorption in an asset-light model.

In FY2025, operating cash flow reached $3.7B, far above net income of $1.1B. With capex only $246M, that became free cash flow of $3.5B, which means growth does not require much physical reinvestment and accounting earnings understate the cash the business actually retains.

Over four fiscal years, debt-to-equity fell from 7.1x to 1.7x as retained earnings moved from negative to positive, so the balance sheet is being strengthened mainly by internally generated profits. But the current ratio is still 1.0x, meaning short-term liquidity is run with little cushion rather than parked in idle current assets.

Financial Health Signals

Financial Profile 58/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of Palo Alto'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 has an operating margin of 13.5%, meaning the company retains $13 of operating profit per $100 of revenue. This results in a moderate score of 45/100, indicating healthy but not exceptional operating efficiency. This is up from 8.5% the prior year.

Growth

Palo Alto's revenue grew 14.9% year-over-year to $9.2B, a solid pace of expansion. This earns a growth score of 59/100.

Leverage

Palo Alto carries a low D/E ratio of 1.72, meaning only $1.72 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 67/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Palo Alto's current ratio of 0.99 is below the typical benchmark, resulting in a score of 15/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

100

Palo Alto converts 37.6% of revenue into free cash flow ($3.5B). This strong cash generation earns a score of 100/100.

Returns

Palo Alto's ROE of 13.1% shows moderate profitability relative to equity, earning a score of 64/100. This is down from 43.6% the prior year.

Altman Z-Score Safe

9.00

Palo Alto scores 9.00, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($205.1B) relative to total liabilities ($14.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

4/9

Palo Alto passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

3.28x

For every $1 of reported earnings, Palo Alto generates $3.28 in operating cash flow ($3.7B OCF vs $1.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

414.3x

Palo Alto earns $414.3 in operating income for every $1 of interest expense ($1.2B vs $3.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$9.2B

YoY+14.9%

5Y CAGR+22.0%

10Y CAGR+25.8%

Palo Alto generated $9.2B in revenue in fiscal year 2025. This represents an increase of 14.9% from the prior year.

EBITDA

$1.6B

YoY+64.0%

5Y CAGR+125.7%

Palo Alto's EBITDA was $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 64.0% from the prior year.

Net Income

$1.1B

YoY-56.0%

Palo Alto reported $1.1B in net income in fiscal year 2025. This represents a decrease of 56.0% from the prior year.

EPS (Diluted)

$1.60

YoY-56.0%

Palo Alto earned $1.60 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 56.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$3.5B

YoY+11.9%

5Y CAGR+33.4%

10Y CAGR+27.0%

Palo Alto generated $3.5B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 11.9% from the prior year.

Cash & Debt

$3.1B

YoY+34.3%

5Y CAGR+7.4%

10Y CAGR+27.2%

Palo Alto held $3.1B in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

697M

YoY+114.1%

Palo Alto had 697M shares outstanding in fiscal year 2025. This represents an increase of 114.1% from the prior year.

Margins & Returns

Gross Margin

73.4%

YoY-0.9pp

5Y CAGR+2.7pp

10Y CAGR+0.5pp

Palo Alto's gross margin was 73.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.9 percentage points from the prior year.

Operating Margin

13.5%

YoY+5.0pp

5Y CAGR+18.7pp

10Y CAGR+24.2pp

Palo Alto's operating margin was 13.5% in fiscal year 2025, reflecting core business profitability. This is up 5.0 percentage points from the prior year.

Net Margin

12.3%

YoY-19.8pp

5Y CAGR+20.1pp

10Y CAGR+26.4pp

Palo Alto's net profit margin was 12.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 19.8 percentage points from the prior year.

Return on Equity

13.1%

YoY-30.5pp

5Y CAGR+48.8pp

10Y CAGR+37.2pp

Palo Alto's ROE was 13.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 30.5 percentage points from the prior year.

Capital Allocation

R&D Spending

$2.0B

YoY+9.7%

5Y CAGR+20.9%

10Y CAGR+26.7%

Palo Alto invested $2.0B in research and development in fiscal year 2025. This represents an increase of 9.7% from the prior year.

Share Buybacks

YoY-100.0%

Palo Alto spent $0 on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.

Capital Expenditures

$246.2M

YoY+57.0%

5Y CAGR+2.8%

10Y CAGR+22.0%

Palo Alto invested $246.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 57.0% from the prior year.

PANW Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$9.2B+14.9%	$8.0B+16.5%	$6.9B+25.3%	$5.5B+29.3%	$4.3B+24.9%	$3.4B
Cost of Revenue	$2.5B+19.1%	$2.1B+7.8%	$1.9B+11.1%	$1.7B+34.8%	$1.3B+27.6%	$999.5M
Gross Profit	$6.8B+13.4%	$6.0B+19.8%	$5.0B+31.7%	$3.8B+26.9%	$3.0B+23.8%	$2.4B
R&D Expenses	$2.0B+9.7%	$1.8B+12.8%	$1.6B+13.1%	$1.4B+24.3%	$1.1B+48.5%	$768.1M
SG&A Expenses	$442.7M-34.9%	$680.5M+52.0%	$447.7M+10.5%	$405.0M+3.6%	$391.1M+30.5%	$299.6M
Operating Income	$1.2B+81.7%	$683.9M+76.6%	$387.3M+305.1%	-$188.8M+37.9%	-$304.1M-69.9%	-$179.0M
Interest Expense	$3.0M-63.9%	$8.3M-69.5%	$27.2M-0.7%	$27.4M-83.2%	$163.3M+84.1%	$88.7M
Income Tax	$461.8M+129.1%	-$1.6B-1355.4%	$126.6M+111.7%	$59.8M+76.4%	$33.9M-3.7%	$35.2M
Net Income	$1.1B-56.0%	$2.6B+486.2%	$439.7M+264.7%	-$267.0M+46.5%	-$498.9M-86.9%	-$267.0M
EPS (Diluted)	$1.60-56.0%	$3.64+468.8%	$0.64	$-0.90+48.0%	$-1.73+37.3%	$-2.76

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$2.6B+4.9%	$2.5B-2.5%	$2.5B+10.8%	$2.3B+1.4%	$2.3B+5.5%	$2.1B-2.3%	$2.2B+10.3%	$2.0B
Cost of Revenue	$685.0M+7.4%	$638.0M-6.1%	$679.3M+9.7%	$619.3M+3.4%	$599.0M+8.1%	$554.0M-3.4%	$573.7M+11.7%	$513.6M
Gross Profit	$1.9B+4.0%	$1.8B-1.1%	$1.9B+11.2%	$1.7B+0.7%	$1.7B+4.6%	$1.6B-1.9%	$1.6B+9.8%	$1.5B
R&D Expenses	$511.0M-3.2%	$528.0M+4.8%	$503.6M+1.8%	$494.5M-2.1%	$505.0M+5.0%	$481.0M-2.8%	$494.8M+8.2%	$457.2M
SG&A Expenses	$178.0M-0.6%	$179.0M+567.9%	$26.8M-83.6%	$163.9M+6.4%	$154.0M+57.1%	$98.0M-30.1%	$140.3M+18.3%	$118.6M
Operating Income	$397.0M+28.5%	$309.0M-37.8%	$497.1M+127.2%	$218.8M-9.2%	$241.0M-15.7%	$286.0M+20.0%	$238.4M+34.9%	$176.7M
Interest Expense	$0	$0-100.0%	$300K-57.1%	$700K-30.0%	$1.0M0.0%	$1.0M+233.3%	$300K-87.0%	$2.3M
Income Tax	$117.0M+50.0%	$78.0M-77.0%	$338.4M+599.2%	$48.4M-16.6%	$58.0M+241.2%	$17.0M+143.9%	-$38.7M-40.2%	-$27.6M
Net Income	$432.0M+29.3%	$334.0M+31.6%	$253.8M-3.2%	$262.1M-1.8%	$267.0M-23.9%	$351.0M-1.9%	$357.7M+28.3%	$278.8M
EPS (Diluted)	$0.61+29.8%	$0.47	N/A	$0.37-2.6%	$0.38-22.4%	$0.49	N/A	$0.39

PANW Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$23.5B+15.5%	$20.4B+37.6%	$14.8B+18.1%	$12.5B+20.3%	$10.4B+19.5%	$8.7B
Current Assets	$7.3B+17.1%	$6.2B-3.6%	$6.5B+13.0%	$5.7B+18.5%	$4.8B+12.5%	$4.3B
Cash & Equivalents	$3.1B+34.3%	$2.3B-8.4%	$2.5B+20.5%	$2.1B-9.1%	$2.3B+6.1%	$2.1B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$1.3B+18.5%	$1.1B-19.8%	$1.4B+14.1%	$1.2B+52.5%	$812.1M+20.2%	$675.5M
Goodwill	$4.6B+12.7%	$4.1B+38.4%	$2.9B+6.5%	$2.7B+0.6%	$2.7B+38.8%	$2.0B
Total Liabilities	$14.9B+2.8%	$14.5B+14.4%	$12.6B+5.0%	$12.0B+21.5%	$9.9B+24.2%	$8.0B
Current Liabilities	$7.4B+0.2%	$7.4B-1.5%	$7.5B-8.3%	$8.2B+14.7%	$7.1B+171.1%	$2.6B
Long-Term Debt	N/A	N/A	N/A	$3.7B+0.2%	$3.7B+17.7%	$3.1B
Total Equity	$8.7B+46.6%	$5.9B+172.4%	$2.2B+327.3%	$508.0M-2.1%	$518.9M-30.5%	$747.0M
Retained Earnings	$2.8B+65.7%	$1.7B+264.6%	-$1.0B+37.3%	-$1.6B-9.5%	-$1.5B-19.3%	-$1.3B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$25.0B+6.1%	$23.5B-0.2%	$23.6B+7.1%	$22.0B+5.0%	$21.0B+2.8%	$20.4B+1.9%	$20.0B+11.5%	$17.9B
Current Assets	$8.4B+14.5%	$7.3B-2.8%	$7.5B+9.0%	$6.9B+8.8%	$6.3B+1.6%	$6.2B-8.9%	$6.8B+15.7%	$5.9B
Cash & Equivalents	$4.2B+35.6%	$3.1B+35.1%	$2.3B-4.8%	$2.4B+7.1%	$2.2B-2.5%	$2.3B+48.7%	$1.5B+11.8%	$1.4B
Inventory	N/A	N/A	$113.4M	N/A	N/A	N/A	$115.9M	N/A
Accounts Receivable	$2.1B+57.6%	$1.3B-54.7%	$3.0B+52.1%	$1.9B+30.4%	$1.5B+32.0%	$1.1B-56.7%	$2.6B+52.7%	$1.7B
Goodwill	$6.9B+51.8%	$4.6B0.0%	$4.6B+12.7%	$4.1B0.0%	$4.1B0.0%	$4.1B+20.9%	$3.4B-0.7%	$3.4B
Total Liabilities	$15.6B+4.8%	$14.9B-5.6%	$15.8B+6.6%	$14.8B+1.3%	$14.6B+0.8%	$14.5B-2.4%	$14.8B+10.1%	$13.5B
Current Liabilities	$8.0B+8.0%	$7.4B-7.1%	$8.0B+3.7%	$7.7B+2.0%	$7.6B+2.0%	$7.4B-3.6%	$7.7B+8.4%	$7.1B
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	$9.4B+8.4%	$8.7B+10.7%	$7.8B+8.2%	$7.2B+13.4%	$6.4B+7.8%	$5.9B+14.4%	$5.2B+15.7%	$4.5B
Retained Earnings	$3.3B+15.3%	$2.8B+13.4%	$2.5B+11.4%	$2.2B+13.3%	$2.0B+15.7%	$1.7B+26.0%	$1.4B+36.0%	$992.5M

PANW Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$3.7B+14.1%	$3.3B+17.3%	$2.8B+39.9%	$2.0B+32.0%	$1.5B+45.1%	$1.0B
Capital Expenditures	$246.2M+57.0%	$156.8M+7.2%	$146.3M-24.1%	$192.8M+66.2%	$116.0M-45.9%	$214.4M
Free Cash Flow	$3.5B+11.9%	$3.1B+17.8%	$2.6B+46.8%	$1.8B+29.2%	$1.4B+68.9%	$821.3M
Investing Cash Flow	-$2.2B-46.0%	-$1.5B+25.8%	-$2.0B-117.9%	-$933.4M+37.0%	-$1.5B-614.1%	$288.0M
Financing Cash Flow	-$778.9M+42.0%	-$1.3B+22.2%	-$1.7B-114.0%	-$806.6M+26.9%	-$1.1B-264.0%	$673.0M
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$0-100.0%	$566.7M+107.8%	$272.7M-69.4%	$892.3M-24.3%	$1.2B-1.7%	$1.2B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$554.0M-68.7%	$1.8B+73.5%	$1.0B+62.5%	$628.2M+12.8%	$557.0M-63.1%	$1.5B+194.5%	$512.7M-3.1%	$528.9M
Capital Expenditures	$170.0M+102.4%	$84.0M-2.7%	$86.3M+27.1%	$67.9M+41.5%	$48.0M+9.1%	$44.0M-7.2%	$47.4M+26.7%	$37.4M
Free Cash Flow	$384.0M-77.2%	$1.7B+80.5%	$934.5M+66.8%	$560.3M+10.1%	$509.0M-65.3%	$1.5B+215.1%	$465.3M-5.3%	$491.5M
Investing Cash Flow	$651.0M+166.2%	-$983.0M-28.9%	-$762.5M-47.4%	-$517.2M-35.7%	-$381.0M+30.0%	-$544.0M-222.8%	-$168.5M-249.0%	$113.1M
Financing Cash Flow	-$114.0M-1525.0%	$8.0M+102.1%	-$374.1M-892.6%	$47.2M+120.3%	-$232.0M-5.5%	-$220.0M-22.7%	-$179.3M+82.9%	-$1.0B
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	$0	$0	$0	$0	$0-100.0%	$500.0M

PANW Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	73.4%-0.9pp	74.4%+2.1pp	72.3%+3.5pp	68.8%-1.3pp	70.0%-0.6pp	70.7%
Operating Margin	13.5%+5.0pp	8.5%+2.9pp	5.6%+9.0pp	-3.4%+3.7pp	-7.1%-1.9pp	-5.3%
Net Margin	12.3%-19.8pp	32.1%+25.7pp	6.4%+11.2pp	-4.9%+6.9pp	-11.7%-3.9pp	-7.8%
Return on Equity	13.1%-30.5pp	43.6%+23.3pp	20.3%+72.8pp	-52.6%+43.6pp	-96.2%-60.4pp	-35.7%
Return on Assets	4.8%-7.8pp	12.7%+9.7pp	3.0%+5.1pp	-2.1%+2.7pp	-4.8%-1.7pp	-3.1%
Current Ratio	0.99+0.1	0.84-0.0	0.86+0.2	0.70+0.0	0.68-1.0	1.63
Debt-to-Equity	1.72-0.7	2.45-3.4	5.82-1.4	7.24+0.2	7.08+2.9	4.18
FCF Margin	37.6%-1.0pp	38.6%+0.5pp	38.2%+5.6pp	32.6%-0.0pp	32.6%+8.5pp	24.1%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	73.6%-0.6pp	74.2%+1.0pp	73.2%+0.3pp	72.9%-0.5pp	73.5%-0.6pp	74.1%+0.3pp	73.8%-0.3pp	74.1%
Operating Margin	15.3%+2.8pp	12.5%-7.1pp	19.6%+10.0pp	9.6%-1.1pp	10.7%-2.7pp	13.4%+2.5pp	10.9%+2.0pp	8.9%
Net Margin	16.7%+3.1pp	13.5%+3.5pp	10.0%-1.4pp	11.5%-0.4pp	11.8%-4.6pp	16.4%+0.1pp	16.3%+2.3pp	14.1%
Return on Equity	4.6%+0.8pp	3.9%+0.6pp	3.2%-0.4pp	3.6%-0.6pp	4.2%-1.8pp	5.9%-1.0pp	6.9%+0.7pp	6.2%
Return on Assets	1.7%+0.3pp	1.4%+0.3pp	1.1%-0.1pp	1.2%-0.1pp	1.3%-0.5pp	1.7%-0.1pp	1.8%+0.2pp	1.6%
Current Ratio	1.04+0.1	0.99+0.0	0.94+0.0	0.90+0.1	0.840.0	0.84-0.0	0.89+0.1	0.84
Debt-to-Equity	1.66-0.1	1.72-0.3	2.01-0.0	2.04-0.2	2.29-0.2	2.45-0.4	2.87-0.1	3.01
FCF Margin	14.8%-53.4pp	68.2%+31.3pp	36.8%+12.4pp	24.5%+1.9pp	22.6%-46.0pp	68.5%+47.3pp	21.3%-3.5pp	24.8%

Note: The current ratio is below 1.0 (0.99), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

What is Palo Alto's annual revenue?

Palo Alto (PANW) reported $9.2B in total revenue for fiscal year 2025. This represents a 14.9% 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's revenue growing?

Palo Alto (PANW) revenue grew by 14.9% year-over-year, from $8.0B to $9.2B in fiscal year 2025.

Is Palo Alto profitable?

Yes, Palo Alto (PANW) reported a net income of $1.1B in fiscal year 2025, with a net profit margin of 12.3%.

What is Palo Alto's EBITDA?

Palo Alto (PANW) had EBITDA of $1.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is Palo Alto's gross margin?

Palo Alto (PANW) had a gross margin of 73.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Palo Alto's operating margin?

Palo Alto (PANW) had an operating margin of 13.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Palo Alto's net profit margin?

Palo Alto (PANW) had a net profit margin of 12.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is Palo Alto's return on equity (ROE)?

Palo Alto (PANW) has a return on equity of 13.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Palo Alto's free cash flow?

Palo Alto (PANW) generated $3.5B in free cash flow during fiscal year 2025. This represents a 11.9% 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's operating cash flow?

Palo Alto (PANW) generated $3.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Palo Alto's total assets?

Palo Alto (PANW) had $23.5B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Palo Alto's capital expenditures?

Palo Alto (PANW) invested $246.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Palo Alto spend on research and development?

Palo Alto (PANW) invested $2.0B in research and development during fiscal year 2025.

How many shares does Palo Alto have outstanding?

Palo Alto (PANW) had 697M shares outstanding as of fiscal year 2025.

What is Palo Alto's current ratio?

Palo Alto (PANW) had a current ratio of 0.99 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

What is Palo Alto's debt-to-equity ratio?

Palo Alto (PANW) had a debt-to-equity ratio of 1.72 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Palo Alto's return on assets (ROA)?

Palo Alto (PANW) had a return on assets of 4.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Palo Alto's Altman Z-Score?

Palo Alto (PANW) has an Altman Z-Score of 9.00, 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's Piotroski F-Score?

Palo Alto (PANW) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. 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's earnings high quality?

Palo Alto (PANW) has an earnings quality ratio of 3.28x, 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.

Can Palo Alto cover its interest payments?

Palo Alto (PANW) has an interest coverage ratio of 414.3x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Palo Alto?

Palo Alto (PANW) scores 58 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.