PANW Technology

Palo Alto Networks, Inc.

$350.20-0.43%

Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026

Basics

Sector: Technology
Industry: Software - Infrastructure
Country: United States
Market cap: 286.5B USD
Enterprise value: 286.0B USD
Full-time employees: 21,921

Overall health

Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: less short-term liquidity (current ratio 0.87 vs a peer median of 1.83)less liquidity (current ratio 0.87 vs peers 1.83)
About average: growth and risk (debt, liquidity and share-price swings)growth and risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 33% from July 2023 to August 2026.
Palo Alto Networks had 33% more shares at August 2026 than at July 2023, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Palo Alto Networks had 33% more shares at August 2026 than at July 2023, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Stock pay outran buybacks. Stock-based pay expense $4.1B vs $1.6B spent repurchasing shares over the 3 fiscal years to FY Jul 2026.
Over three fiscal years Palo Alto Networks recorded $4.1B of stock-based pay expense and spent $1.6B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Palo Alto Networks recorded $4.1B of stock-based pay expense and spent $1.6B repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Stock-based pay is a large cost. Stock pay was 15% of revenue in FY Jul 2026.
Palo Alto Networks paid employees $1.8B in stock in FY Jul 2026, 15% of its $11.5B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Cash flow well above reported profit. Free cash flow is 13.4× reported profit.
Free cash flow is 13.4× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

StockQuotient Score

39/ 100

Oct 5 39 → Nov 4 39

Valuation

Is the price right?

20/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ EBITDA yield
▼ Earnings yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield0.1%

SEC filings · 12 months to Jul 2026Reported value30% base weight · Z-score -0.95Sector median: 0.0225 · MAD: 0.0225

EBITDA yield0.5%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score -1.02Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield1.4%

SEC filings · 12 months to Jul 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.48Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield9.6%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

58/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 8.2%

Why

Mixed versus peers:

▲ 3-yr revenue
▲ Revenue growth
▼ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-77.9%

SEC filings · 12 months to Jul 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score -2.45Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth18.5%

SEC filings · 3 years to Jul 2026Reported value33% base weight · Z-score 1.73Sector median: 0.0483 · MAD: 0.0793

Revenue growth24.5%

SEC filings · 12 months to Jul 2026Reported value33% base weight · Z-score 1.57Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

35/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▼ Weaker

Operating margin fell 3.6 points to 6.1%

Why

Weaker than most peers on:

▼ ROA
▼ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin6.1%

SEC filings · 12 months to Jul 2026Reported value33% base weight · Z-score -0.04Sector median: 0.0631 · MAD: 0.0710

Return on assets0.6%

SEC filings · 12 months to Jul 2026Reported value33% base weight · Z-score -0.64Sector median: 0.0293 · MAD: 0.0362

Return on invested capital2.2%

SEC filings · 12 months to Jul 2026Reported value33% base weight · Z-score -0.53Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin70.4%

SEC filings · 12 months to Jul 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity1.1%

SEC filings · 12 months to Jul 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ Debt / equity
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.93

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -0.17Sector median: 0.8710 · MAD: 0.3700

Current ratio0.87×

SEC filings · latest balance sheetReported value33% base weight · Z-score -1.40Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.09×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 0.69Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Palo Alto Networks

Is Palo Alto Networks getting weaker?: Its latest SEC filing (Sep 10, 2026) got weaker in some ways: operating margin fell 3.6 points to 6.1%. Its overall score is unchanged at 39/100 since Oct 28, 2026.
How is Palo Alto Networks valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 20/100 against 1,711 technology peers. EBITDA yield 0.5% vs a peer median of 4.2% (weaker than 78% of peers).EBITDA yield 0.5% vs peers 4.2% (weaker than 78% of peers).
Is Palo Alto Networks growing?: At about the same pace as its peers. Growth scores 58/100 against 1,711 technology peers. 3-year revenue growth 18.5% vs a peer median of 4.8% (stronger than 84% of peers).3-year revenue growth 18.5% vs peers 4.8% (stronger than 84% of peers). Earnings per share growth -77.9% vs a peer median of 11.1% (weaker than 100% of peers).Earnings per share growth -77.9% vs peers 11.1% (weaker than 100% of peers).
How profitable is Palo Alto Networks?: Less profitable than most of its peers. Profitability scores 35/100 against 1,711 technology peers. Return on assets 0.6% vs a peer median of 2.9% (weaker than 68% of peers).Return on assets 0.6% vs peers 2.9% (weaker than 68% of peers).
How risky is Palo Alto Networks?: Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.09× vs a peer median of 0.25× (stronger than 69% of peers).Debt / equity 0.09× vs peers 0.25× (stronger than 69% of peers). Current ratio 0.87× vs a peer median of 1.83× (weaker than 93% of peers).Current ratio 0.87× vs peers 1.83× (weaker than 93% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jul 31, 2026 · filed Sep 10, 2026 · compared with the quarter ended Apr 30, 2026

Got weaker

Operating margin fell 3.6 points to 6.1%

	Previous quarter	Latest quarter	Change
Revenue (12 months)	10.6B USD	11.5B USD	+8.2%
Net income (12 months)	842.9M USD	307.0M USD	−63.6%
Operating margin	9.6%	6.1%	−3.6 pts
Free cash flow (12 months)	3.8B USD	4.1B USD	+8.4%
Cash	2.4B USD	2.5B USD	+6.3%
Shares outstanding	815.0M	818.0M	+0.4%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Infrastructure · 71 companies

Valuations in Software - Infrastructure are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +19% and earnings +22% (medians): prices and earnings moved broadly together.
Median price-to-sales is +97% vs the whole market, against a usual +103%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Jul 2022	FY Jul 2023	FY Jul 2024	FY Jul 2025	FY Jul 2026	Change
Gross margin	68.8%	72.3%	74.3%	73.4%	70.4%	▼ 3.1 pts
Operating margin	-3.4%	5.6%	8.5%	13.5%	6.1%	▼ 7.4 pts
Net margin	-4.9%	6.4%	32.1%	12.3%	2.7%	▼ 9.6 pts
Return on assets (ROA)	-2.2%	3.0%	12.9%	4.8%	0.6%	▼ 4.2 pts
Return on equity (ROE)	—	25.2%	49.9%	14.5%	1.1%	▼ 13 pts
Free cash flow margin	32.6%	38.2%	38.6%	37.6%	35.8%	▼ 1.8 pts
Current ratio	0.77×	0.78×	0.89×	0.94×	0.87×	▼ 7.5%
Quick ratio	—	—	0.88×	0.93×	0.86×	▼ 7.4%
Debt to equity	—	1.14×	—	—	—	—
Interest coverage	-6.89×	14.24×	82.41×	414.33×	—	—

PANW price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: less short-term liquidity (current ratio 0.87 vs a peer median of 1.83)less liquidity (current ratio 0.87 vs peers 1.83)

About average: growth and risk (debt, liquidity and share-price swings)growth and risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 33% from July 2023 to August 2026.

Palo Alto Networks had 33% more shares at August 2026 than at July 2023, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Palo Alto Networks had 33% more shares at August 2026 than at July 2023, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Stock pay outran buybacks. Stock-based pay expense $4.1B vs $1.6B spent repurchasing shares over the 3 fiscal years to FY Jul 2026.

Over three fiscal years Palo Alto Networks recorded $4.1B of stock-based pay expense and spent $1.6B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Palo Alto Networks recorded $4.1B of stock-based pay expense and spent $1.6B repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Stock-based pay is a large cost. Stock pay was 15% of revenue in FY Jul 2026.

Palo Alto Networks paid employees $1.8B in stock in FY Jul 2026, 15% of its $11.5B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Cash flow well above reported profit. Free cash flow is 13.4× reported profit.

Free cash flow is 13.4× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

Questions investors ask about Palo Alto Networks

Is Palo Alto Networks getting weaker?

Its latest SEC filing (Sep 10, 2026) got weaker in some ways: operating margin fell 3.6 points to 6.1%. Its overall score is unchanged at 39/100 since Oct 28, 2026.

How is Palo Alto Networks valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 20/100 against 1,711 technology peers. EBITDA yield 0.5% vs a peer median of 4.2% (weaker than 78% of peers).EBITDA yield 0.5% vs peers 4.2% (weaker than 78% of peers).

Is Palo Alto Networks growing?

At about the same pace as its peers. Growth scores 58/100 against 1,711 technology peers. 3-year revenue growth 18.5% vs a peer median of 4.8% (stronger than 84% of peers).3-year revenue growth 18.5% vs peers 4.8% (stronger than 84% of peers). Earnings per share growth -77.9% vs a peer median of 11.1% (weaker than 100% of peers).Earnings per share growth -77.9% vs peers 11.1% (weaker than 100% of peers).

How profitable is Palo Alto Networks?

Less profitable than most of its peers. Profitability scores 35/100 against 1,711 technology peers. Return on assets 0.6% vs a peer median of 2.9% (weaker than 68% of peers).Return on assets 0.6% vs peers 2.9% (weaker than 68% of peers).

How risky is Palo Alto Networks?

Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.09× vs a peer median of 0.25× (stronger than 69% of peers).Debt / equity 0.09× vs peers 0.25× (stronger than 69% of peers). Current ratio 0.87× vs a peer median of 1.83× (weaker than 93% of peers).Current ratio 0.87× vs peers 1.83× (weaker than 93% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

10.6B USD

11.5B USD

+8.2%

Net income (12 months)

842.9M USD

307.0M USD

−63.6%

Operating margin

9.6%

6.1%

−3.6 pts

Free cash flow (12 months)

3.8B USD

4.1B USD

+8.4%

Cash

2.4B USD

2.5B USD

+6.3%

Shares outstanding

815.0M

818.0M

+0.4%

Key ratios

FY Jul 2022

FY Jul 2023

FY Jul 2024

FY Jul 2025

FY Jul 2026

Change

Gross margin

68.8%

72.3%

74.3%

73.4%

70.4%

▼ 3.1 pts

Operating margin

-3.4%

5.6%

8.5%

13.5%

6.1%

▼ 7.4 pts

Net margin

-4.9%

6.4%

32.1%

12.3%

2.7%

▼ 9.6 pts

Return on assets (ROA)

-2.2%

3.0%

12.9%

4.8%

0.6%

▼ 4.2 pts

Return on equity (ROE)

—

25.2%

49.9%

14.5%

1.1%

▼ 13 pts

Free cash flow margin

32.6%

38.2%

38.6%

37.6%

35.8%

▼ 1.8 pts

Current ratio

0.77×

0.78×

0.89×

0.94×

0.87×

▼ 7.5%

Quick ratio

—

0.88×

0.93×

0.86×

▼ 7.4%

Debt to equity

—

1.14×

—

Interest coverage

-6.89×

14.24×

82.41×

414.33×

—