What is Palo Alto Networks' operating income?

Palo Alto Networks' total operating income in 2025 was $1.24 billion, based on the following breakdown: Total Gross Profit: $6.77 billion Total Operating Expenses: $5.53 billion

Palo Alto Networks (PANW) Financials

$287.78 +5.65 (+2.00%)

Closing price 04:00 PM Eastern

Extended Trading

$287.38 -0.40 (-0.14%)

As of 07:59 PM Eastern

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Annual Income Statements for Palo Alto Networks

This table shows Palo Alto Networks' income and expenses over time, based on annual financial data. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	7/31/2015	7/31/2016	7/31/2017	7/31/2018	7/31/2019	7/31/2020	7/31/2021	7/31/2022	7/31/2023	7/31/2024	7/31/2025
Net Income / (Loss) Attributable to Common Shareholders	-131	-193	-203	-122	-82	-267	-499	-267	440	2,578	1,134
Consolidated Net Income / (Loss)	-131	-193	-203	-122	-82	-267	-499	-267	440	2,578	1,134
Net Income / (Loss) Continuing Operations	-131	-193	-203	-122	-82	-267	-499	-267	440	2,578	1,134
Total Pre-Tax Income	-122	-172	-180	-105	-75	-232	-465	-207	566	988	1,596
Total Operating Income	-100	-157	-166	-104	-54	-179	-304	-189	387	684	1,243
Total Gross Profit	677	1,009	1,279	2,274	2,091	2,409	2,981	3,783	4,983	5,968	6,770
Total Revenue	928	1,379	1,755	2,274	2,900	3,408	4,256	5,502	6,893	8,028	9,222
Operating Revenue	928	1,379	1,755	2,274	2,900	3,408	4,256	5,502	6,893	8,028	9,222
Total Cost of Revenue	252	370	476	0.00	808	1,000	1,275	1,719	1,910	2,059	2,452
Operating Cost of Revenue	252	370	-476	-	808	1,000	1,275	1,719	1,910	2,059	2,452
Total Operating Expenses	776	1,166	1,445	2,378	2,145	2,588	3,285	3,972	4,596	5,284	5,527
Selling, General & Admin Expense	102	138	198	258	262	300	391	405	448	681	443
Marketing Expense	489	743	899	1,074	1,344	1,520	1,754	2,149	2,544	2,795	3,100
Research & Development Expense	186	284	347	401	540	768	1,140	1,418	1,604	1,809	1,984
Total Other Income / (Expense), net	-22	-15	-14	-1.10	-21	-53	-161	-18	179	304	353
Interest Expense	22	23	25	30	84	89	163	27	27	8.30	3.00
Other Income / (Expense), net	0.20	8.40	10	29	63	36	2.40	9.00	206	313	356
Income Tax Expense	9.40	20	23	17	7.30	35	34	60	127	-1,589	462
Basic Earnings per Share	($1.61)	($2.21)	($2.24)	($1.33)	($0.87)	($2.76)	($1.73)	($0.90)	$0.73	$4.04	$1.71
Weighted Average Basic Shares Outstanding	81.60M	87.10M	90.60M	91.70M	94.50M	96.90M	289.10M	295.60M	606.40M	638.50M	662.50M
Diluted Earnings per Share	($1.61)	($2.21)	($2.24)	($1.33)	($0.87)	($2.76)	($1.73)	($0.90)	$0.64	$3.64	$1.60
Weighted Average Diluted Shares Outstanding	81.60M	87.10M	90.60M	91.70M	94.50M	96.90M	289.10M	295.60M	684.50M	707.90M	709.30M
Weighted Average Basic & Diluted Shares Outstanding	81.60M	87.10M	90.60M	91.70M	94.50M	96.90M	97.41M	99.74M	308.59M	325.60M	668.90M

This table shows Palo Alto Networks' income and expenses over time, based on quarterly financial data. All values are USD millions unless otherwise specified.

Metric	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026	Q3 2026
Period end date	10/31/2023	1/31/2024	4/30/2024	7/31/2024	10/31/2024	1/31/2025	4/30/2025	7/31/2025	10/31/2025	1/31/2026	4/30/2026
Net Income / (Loss) Attributable to Common Shareholders	194	1,747	279	358	351	267	262	254	334	432	-177
Consolidated Net Income / (Loss)	194	1,747	279	358	351	267	262	254	334	432	-177
Net Income / (Loss) Continuing Operations	194	1,747	279	358	351	267	262	254	334	432	-177
Total Pre-Tax Income	283	136	251	319	368	325	311	592	412	549	-156
Total Operating Income	215	54	177	238	286	241	219	497	309	397	-183
Total Gross Profit	1,405	1,476	1,471	1,616	1,585	1,658	1,670	1,857	1,836	1,909	2,028
Total Revenue	1,878	1,975	1,985	2,190	2,139	2,257	2,289	2,536	2,474	2,594	3,002
Operating Revenue	1,878	1,975	1,985	2,190	2,139	2,257	2,289	2,536	2,474	2,594	3,002
Total Cost of Revenue	473	499	514	574	554	599	619	679	638	685	974
Operating Cost of Revenue	473	499	514	574	554	599	619	679	638	685	974
Total Operating Expenses	1,190	1,422	1,295	1,377	1,299	1,417	1,451	1,360	1,527	1,512	2,211
Selling, General & Admin Expense	120	302	119	140	98	154	164	27	179	178	316
Marketing Expense	661	673	719	742	720	758	793	829	820	823	1,161
Research & Development Expense	410	448	457	495	481	505	494	504	528	511	734
Total Other Income / (Expense), net	67	82	75	81	82	84	92	95	103	152	27
Interest Expense	2.90	2.80	2.30	0.30	1.00	1.00	1.00	0.20	0.00	0.00	0.00
Other Income / (Expense), net	70	85	77	81	83	85	93	95	103	152	27
Income Tax Expense	88	-1,611	-28	-39	17	58	49	338	78	117	21
Basic Earnings per Share	$0.63	$2.73	$0.43	$1.12	$0.54	$0.41	$0.39	$0.38	$0.49	$0.61	($0.22)
Weighted Average Basic Shares Outstanding	310.10M	639.30M	645.80M	319.20M	654M	659M	665M	662.50M	679M	704M	801M
Diluted Earnings per Share	$0.56	$2.44	$0.39	$1.12	$0.49	$0.38	$0.37	$0.38	$0.47	$0.61	($0.22)
Weighted Average Diluted Shares Outstanding	349.80M	715M	709.30M	354M	709M	709M	707M	709.30M	709M	711M	801M
Weighted Average Basic & Diluted Shares Outstanding	315.30M	323.10M	323.80M	325.60M	328.10M	662.10M	666.80M	668.90M	697M	816M	815M

This table details how cash moves in and out of Palo Alto Networks' business through operations, investing, and financing, using annual figures. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	7/31/2015	7/31/2016	7/31/2017	7/31/2018	7/31/2019	7/31/2020	7/31/2021	7/31/2022	7/31/2023	7/31/2024	7/31/2025
Net Change in Cash & Equivalents	-278	359	10	1,764	-1,698	1,997	-1,082	245	-983	405	732
Net Cash From Operating Activities	353	659	869	1,038	1,056	1,036	1,503	1,985	2,778	3,258	3,716
Net Cash From Continuing Operating Activities	353	659	869	1,038	902	1,036	1,503	1,985	2,778	3,258	3,716
Net Income / (Loss) Continuing Operations	-131	-193	-203	-122	-82	-267	-499	-267	440	2,578	1,134
Consolidated Net Income / (Loss)	-131	-193	-203	-122	-82	-267	-499	-267	440	2,578	1,134
Depreciation Expense	29	43	60	96	-	206	260	283	282	283	343
Amortization Expense	26	26	135	179	312	322	454	383	368	389	441
Non-Cash Adjustments To Reconcile Net Income	221	393	495	538	656	703	939	1,066	1,124	1,131	1,361
Changes in Operating Assets and Liabilities, net	208	389	382	347	170	72	349	521	563	-1,123	438
Net Cash From Investing Activities	-679	-339	-473	-520	-1,826	288	-1,481	-933	-2,034	-1,510	-2,205
Net Cash From Continuing Investing Activities	-679	-339	-473	-520	-1,826	288	-1,481	-933	-2,034	-1,510	-2,205
Purchase of Property, Plant & Equipment	-34	-73	-163	-112	-131	-214	-116	-193	-146	-157	-246
Acquisitions	-15	0.00	-91	-374	-774	-584	-777	-37	-205	-611	-1,054
Purchase of Investments	-988	-1,037	-996	-726	-2,985	-1,181	-1,959	-2,272	-5,460	-3,551	-3,696
Sale and/or Maturity of Investments	358	771	777	692	2,064	2,267	1,372	1,568	3,777	2,809	2,792
Net Cash From Financing Activities	48	39	-386	1,246	-774	673	-1,104	-807	-1,726	-1,343	-779
Net Cash From Continuing Financing Activities	48	39	-386	1,246	-774	673	-1,104	-807	-1,726	-1,343	-779
Repayment of Debt	-	-	0.00	0.00	-481	0.00	-1.10	-0.60	-1,692	-1,034	-966
Repurchase of Common Equity	0.00	0.00	-411	-259	-330	-1,198	-1,178	-892	-273	-567	0.00
Issuance of Common Equity	48	45	46	198	72	287	104	137	259	284	371
Other Financing Activities, net	0.00	0.00	-21	-376	-35	-395	-29	-50	-20	-27	-184
Cash Interest Paid	-	-	0.00	0.80	14	14	20	20	20	5.60	1.70
Cash Income Taxes Paid	18	7.10	9.00	11	22	17	25	35	147	342	506

This table details how cash moves in and out of Palo Alto Networks' business through operations, investing, and financing, using quarterly figures. All values are USD millions unless otherwise specified.

Metric	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026	Q3 2026
Period end date	10/31/2023	1/31/2024	4/30/2024	7/31/2024	10/31/2024	1/31/2025	4/30/2025	7/31/2025	10/31/2025	1/31/2026	4/30/2026
Net Change in Cash & Equivalents	1,355	-708	-407	165	746	-56	158	-116	796	1,091	-1,792
Net Cash From Operating Activities	1,526	690	529	513	1,510	557	629	1,021	1,771	554	871
Net Cash From Continuing Operating Activities	1,526	690	529	513	1,510	557	629	1,021	1,771	554	871
Net Income / (Loss) Continuing Operations	194	1,747	279	358	351	267	262	254	334	432	-177
Consolidated Net Income / (Loss)	194	1,747	279	358	351	267	262	254	334	432	-177
Depreciation Expense	64	69	74	76	84	88	88	84	89	91	334
Amortization Expense	92	94	96	108	95	104	110	131	119	90	148
Non-Cash Adjustments To Reconcile Net Income	283	286	278	284	311	337	342	372	388	318	709
Changes in Operating Assets and Liabilities, net	892	-1,505	-198	-313	669	-239	-173	181	841	-377	-143
Net Cash From Investing Activities	-129	-1,326	113	-169	-544	-381	-518	-763	-983	651	-1,766
Net Cash From Continuing Investing Activities	-129	-1,326	113	-169	-544	-381	-518	-763	-983	651	-1,766
Purchase of Property, Plant & Equipment	-37	-35	-37	-47	-44	-48	-68	-86	-84	-170	-83
Acquisitions	0.00	-611	-	-	-500	0.50	-	-555	-2.00	-2,576	-1,985
Purchase of Investments	-855	-1,157	-475	-1,065	-660	-1,072	-1,089	-875	-1,401	-524	-496
Sale and/or Maturity of Investments	763	477	626	944	660	738	640	753	504	3,921	798
Net Cash From Financing Activities	-42	-73	-1,049	-179	-220	-232	47	-374	8.00	-114	-899
Net Cash From Continuing Financing Activities	-42	-73	-1,049	-179	-220	-232	47	-374	8.00	-114	-899
Issuance of Common Equity	86	58	116	24	121	37	203	9.90	130	8.00	126
Other Financing Activities, net	-16	-3.80	-3.40	-3.90	-22	-156	-5.30	-0.70	-122	-122	-35

This table presents Palo Alto Networks' assets and liabilities at the end of each period, using annual balance sheet data. All values are USD millions unless otherwise specified.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	7/31/2015	7/31/2016	7/31/2017	7/31/2018	7/31/2019	7/31/2020	7/31/2021	7/31/2022	7/31/2023	7/31/2024	7/31/2025
Total Assets	1,965	2,858	3,438	5,949	6,592	9,065	10,242	12,254	14,501	19,991	23,576
Total Current Assets	1,074	1,774	1,976	4,139	3,665	5,129	4,647	6,415	6,048	6,850	7,523
Cash & Equivalents	376	734	744	2,507	961	2,958	1,874	2,119	1,135	1,535	2,269
Short-Term Investments	413	551	631	897	1,842	790	1,027	1,516	1,255	1,044	635
Note & Lease Receivable	-	-	-	-	-	-	-	111	389	726	715
Accounts Receivable	212	349	432	467	582	1,037	1,240	2,143	2,463	2,619	2,965
Prepaid Expenses	73	140	169	268	279	138	229	209	467	557	520
Other Current Assets	-	-	-	-	-	206	277	318	339	369	419
Plant, Property, & Equipment, net	63	117	211	273	296	348	318	358	355	361	387
Total Noncurrent Assets	828	967	1,251	1,537	2,631	3,588	5,276	5,481	8,099	12,780	15,666
Long-Term Investments	539	653	789	548	575	554	888	1,052	3,048	4,173	5,555
Noncurrent Note & Lease Receivables	-	-	-	-	-	-	-	192	653	1,182	1,002
Goodwill	164	164	239	523	1,352	1,813	2,710	2,748	2,927	3,350	4,567
Intangible Assets	53	44	54	141	281	358	499	385	315	375	763
Noncurrent Deferred & Refundable Income Taxes	-	-	-	-	-	-	-	-	23	2,399	2,424
Other Noncurrent Operating Assets	73	107	169	326	423	440	684	555	585	739	769
Other Noncurrent Nonoperating Assets	-	-	-	-	-	422	495	550	547	562	586
Total Liabilities & Shareholders' Equity	1,965	2,858	3,438	5,949	6,592	9,065	10,242	12,254	14,501	19,991	23,576
Total Liabilities	1,389	1,963	2,679	4,767	5,006	7,964	9,478	12,044	12,753	14,821	15,752
Total Current Liabilities	1,032	847	1,201	2,102	2,053	2,692	5,117	8,306	7,738	7,683	7,988
Short-Term Debt	487	-	0.00	550	-	0.00	1,558	3,677	1,992	964	0.00
Accounts Payable	13	30	36	49	73	64	57	128	132	116	232
Accrued Expenses	28	39	80	125	162	257	329	399	391	507	846
Current Deferred Revenue	424	704	968	1,214	1,582	2,049	2,742	3,641	4,675	5,541	6,302
Current Employee Benefit Liabilities	80	74	118	164	236	322	431	461	548	555	608
Total Noncurrent Liabilities	357	1,117	1,477	2,665	2,953	5,272	4,361	3,737	5,015	7,139	7,764
Long-Term Debt	0.00	500	525	1,370	1,430	3,084	1,668	-	-	-	0.00
Noncurrent Deferred Revenue	290	537	805	1,066	1,307	1,761	2,282	3,353	4,622	5,939	6,450
Noncurrent Deferred & Payable Income Tax Liabilities	-	-	-	-	-	-	-	-	28	388	89
Other Noncurrent Operating Liabilities	67	79	148	230	216	427	411	385	365	811	1,225
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	488	895	760	1,160	1,586	1,102	635	210	1,748	5,170	7,824
Total Preferred & Common Equity	488	895	760	1,160	1,586	1,102	635	210	1,748	5,170	7,824
Preferred Stock	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Common Equity	488	895	760	1,160	1,586	1,102	635	210	1,748	5,170	7,824
Common Stock	989	1,516	1,600	1,967	2,491	2,259	2,311	1,933	3,019	3,821	5,292
Retained Earnings	-501	-622	-837	-791	-901	-1,168	-1,667	-1,667	-1,227	1,350	2,484
Accumulated Other Comprehensive Income / (Loss)	-0.10	1.00	-3.40	-16	-3.70	11	-9.90	-56	-43	-1.60	48

This table presents Palo Alto Networks' assets and liabilities at the end of each period, using quarterly balance sheet data. All values are USD millions unless otherwise specified.

Metric	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q1 2026	Q2 2026	Q3 2026
Period end date	7/31/2023	10/31/2023	1/31/2024	4/30/2024	7/31/2024	10/31/2024	1/31/2025	4/30/2025	10/31/2025	1/31/2026	4/30/2026
Total Assets	14,501	14,809	18,292	17,931	19,991	20,375	20,952	22,003	23,536	24,979	46,266
Total Current Assets	6,048	6,478	6,447	5,919	6,850	6,243	6,340	6,899	7,310	8,369	7,713
Cash & Equivalents	1,135	2,491	1,783	1,374	1,535	2,283	2,226	2,383	3,066	4,158	2,364
Short-Term Investments	1,255	1,402	1,589	1,517	1,044	1,108	1,007	917	1,144	378	747
Note & Lease Receivable	389	446	446	572	726	805	755	737	737	672	591
Accounts Receivable	2,463	1,413	1,896	1,715	2,619	1,133	1,496	1,950	1,343	2,116	2,852
Prepaid Expenses	467	396	406	404	557	546	480	524	605	621	705
Other Current Assets	339	329	328	337	369	368	376	387	415	424	454
Plant, Property, & Equipment, net	355	353	352	350	361	361	358	367	394	485	506
Total Noncurrent Assets	8,099	7,978	11,493	11,662	12,780	13,771	14,254	14,737	15,832	16,125	38,047
Long-Term Investments	3,048	2,989	3,620	3,504	4,173	4,120	4,560	5,152	5,982	3,362	3,881
Noncurrent Note & Lease Receivables	653	640	640	883	1,182	1,092	1,164	1,069	855	870	779
Goodwill	2,927	2,927	3,373	3,373	3,350	4,051	4,051	4,051	4,567	6,931	21,902
Intangible Assets	315	291	440	408	375	810	771	730	723	1,249	7,283
Noncurrent Deferred & Refundable Income Taxes	23	-	2,234	2,292	2,399	2,398	2,447	2,452	2,416	2,392	2,380
Other Noncurrent Operating Assets	585	1,132	1,186	1,202	739	769	738	754	743	795	1,271
Other Noncurrent Nonoperating Assets	547	-	-	-	562	532	523	528	546	526	551
Total Liabilities & Shareholders' Equity	14,501	14,809	18,292	17,931	19,991	20,375	20,952	22,003	23,536	24,979	46,266
Total Liabilities	12,753	12,638	13,935	13,463	14,821	14,463	14,576	14,772	14,871	15,586	18,598
Total Current Liabilities	7,738	7,513	7,766	7,085	7,683	7,403	7,552	7,706	7,418	8,009	9,006
Short-Term Debt	1,992	1,947	1,822	1,163	964	646	534	383	-	-	160
Accounts Payable	132	132	179	109	116	212	149	235	223	262	293
Accrued Expenses	391	372	394	413	507	683	778	825	665	937	760
Current Deferred Revenue	4,675	4,732	4,918	5,015	5,541	5,508	5,600	5,757	6,132	6,248	7,113
Current Employee Benefit Liabilities	548	331	453	386	555	355	492	506	398	562	680
Total Noncurrent Liabilities	5,015	5,125	6,169	6,378	7,139	7,060	7,024	7,067	7,453	7,577	9,592
Long-Term Debt	-	-	-	-	-	-	-	-	-	-	1,192
Noncurrent Deferred Revenue	4,622	4,711	4,900	5,153	5,939	5,586	5,663	5,817	6,098	6,181	6,492
Noncurrent Deferred & Payable Income Tax Liabilities	28	-	589	503	388	251	116	26	96	75	259
Other Noncurrent Operating Liabilities	365	414	681	723	811	1,223	1,246	1,224	1,259	1,321	1,649
Commitments & Contingencies	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Equity & Noncontrolling Interests	1,748	2,171	4,357	4,468	5,170	5,912	6,375	7,231	8,665	9,393	27,668
Total Preferred & Common Equity	1,748	2,171	4,357	4,468	5,170	5,912	6,375	7,231	8,665	9,393	27,668
Preferred Stock	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Total Common Equity	1,748	2,171	4,357	4,468	5,170	5,912	6,375	7,231	8,665	9,393	27,668
Common Stock	3,019	3,297	3,650	3,531	3,821	4,215	4,421	4,952	5,780	6,097	24,608
Retained Earnings	-1,227	-1,033	714	993	1,350	1,701	1,968	2,230	2,818	3,250	3,073
Accumulated Other Comprehensive Income / (Loss)	-43	-93	-6.50	-55	-1.60	-4.00	-14	48	67	46	-13

This table displays calculated financial ratios and metrics derived from Palo Alto Networks' official financial filings.

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Period end date	7/31/2015	7/31/2016	7/31/2017	7/31/2018	7/31/2019	7/31/2020	7/31/2021	7/31/2022	7/31/2023	7/31/2024	7/31/2025
Growth Metrics	-	-	-	-	-	-	-	-	-	-	-
Revenue Growth	55.15%	48.53%	27.32%	29.54%	27.53%	17.55%	24.87%	29.26%	25.29%	16.46%	14.87%
EBITDA Growth	77.13%	-76.33%	148.68%	414.95%	60.56%	20.04%	7.17%	17.66%	156.10%	34.23%	42.74%
EBIT Growth	54.79%	-49.50%	-4.50%	51.35%	112.29%	-1,638.71%	-110.83%	40.40%	430.09%	67.92%	60.42%
NOPAT Growth	53.65%	-57.62%	-5.40%	37.15%	48.08%	-230.87%	-69.89%	37.92%	327.54%	493.15%	-50.48%
Net Income Growth	42.03%	-46.76%	-5.35%	39.80%	32.98%	-226.01%	-86.85%	46.48%	264.68%	486.22%	-56.01%
EPS Growth	47.21%	-37.27%	-1.36%	40.63%	34.59%	-217.24%	-86.85%	46.48%	242.22%	468.75%	-56.04%
Operating Cash Flow Growth	299.10%	86.68%	31.92%	19.49%	1.69%	-1.89%	45.12%	32.05%	39.95%	17.29%	14.07%
Free Cash Flow Firm Growth	156.50%	7.80%	31.11%	-147.29%	-402.46%	109.75%	-994.46%	301.97%	29.57%	-39.89%	28.39%
Invested Capital Growth	-580.56%	-105.10%	-61.97%	3.57%	57.32%	-48.70%	45.34%	-358.46%	-66.34%	47.42%	-3.38%
Revenue Q/Q Growth	12.85%	9.27%	6.16%	7.36%	5.35%	4.43%	6.74%	6.41%	6.21%	3.03%	3.91%
EBITDA Q/Q Growth	43.70%	-23.57%	146.75%	-3.57%	-22.87%	54.10%	-3.26%	25.03%	30.22%	0.76%	14.56%
EBIT Q/Q Growth	23.01%	-14.36%	5.81%	33.25%	-69.31%	-19.45%	-17.03%	32.13%	100.85%	-0.29%	20.57%
NOPAT Q/Q Growth	19.78%	-16.17%	5.37%	22.59%	-99.63%	-4.62%	-16.29%	28.65%	150.05%	2.78%	-4.08%
Net Income Q/Q Growth	13.11%	-11.00%	3.24%	20.55%	-51.39%	-16.64%	-13.77%	31.47%	104.23%	5.31%	-8.39%
EPS Q/Q Growth	15.26%	-10.50%	3.45%	21.30%	-55.36%	-16.46%	-13.77%	31.47%	80.28%	-3.96%	-13.98%
Operating Cash Flow Q/Q Growth	65.76%	12.56%	6.43%	3.78%	-4.18%	10.95%	-0.52%	11.08%	-3.80%	3.12%	15.84%
Free Cash Flow Firm Q/Q Growth	283.45%	-29.72%	119.41%	-256.48%	-110.66%	106.07%	10.09%	23.45%	-7.83%	-3.69%	-39.40%
Invested Capital Q/Q Growth	-31.03%	-1.29%	-15.85%	7.81%	47.55%	-1,799.05%	-182.47%	-134.32%	-28.04%	-54.40%	10.73%
Profitability Metrics	-	-	-	-	-	-	-	-	-	-	-
Gross Margin	72.90%	73.16%	72.86%	100.00%	72.12%	70.68%	70.05%	68.76%	72.29%	74.35%	73.41%
EBITDA Margin	-4.87%	-5.78%	2.21%	8.79%	11.06%	11.30%	9.70%	8.83%	18.04%	20.79%	25.84%
Operating Margin	-10.75%	-11.41%	-9.45%	-4.58%	-1.87%	-5.25%	-7.15%	-3.43%	5.62%	8.52%	13.48%
EBIT Margin	-10.73%	-10.80%	-8.87%	-3.33%	0.32%	-4.20%	-7.09%	-3.27%	8.61%	12.41%	17.34%
Profit (Net Income) Margin	-14.15%	-13.98%	-11.57%	-5.37%	-2.82%	-7.83%	-11.72%	-4.85%	6.38%	32.11%	12.30%
Tax Burden Percent	107.71%	111.84%	112.72%	116.05%	109.79%	115.19%	107.29%	128.86%	77.64%	260.81%	71.06%
Interest Burden Percent	122.39%	115.72%	115.75%	139.10%	-802.15%	161.98%	154.13%	115.24%	95.42%	99.17%	99.81%
Effective Tax Rate	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	22.36%	-160.81%	28.94%
Return on Invested Capital (ROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ROIC Less NNEP Spread (ROIC-NNEP)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Net Nonoperating Assets (RNNOA)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Return on Equity (ROE)	-25.14%	-26.21%	-24.54%	-12.59%	-5.92%	-19.87%	-53.49%	-54.85%	44.90%	74.52%	17.45%
Cash Return on Invested Capital (CROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Operating Return on Assets (OROA)	-5.78%	-6.17%	-4.94%	-1.61%	0.15%	-1.83%	-3.13%	-1.60%	4.44%	5.78%	7.34%
Return on Assets (ROA)	-7.63%	-7.99%	-6.45%	-2.60%	-1.31%	-3.41%	-5.17%	-2.37%	3.29%	14.95%	5.21%
Return on Common Equity (ROCE)	-23.03%	-24.64%	-24.54%	-12.44%	-5.87%	-19.87%	-49.79%	-47.58%	44.90%	74.52%	17.45%
Return on Equity Simple (ROE_SIMPLE)	-26.91%	-21.53%	-26.72%	-10.53%	-5.16%	-24.23%	-78.63%	-127.14%	25.15%	49.86%	0.00%
Net Operating Profit after Tax (NOPAT)	-70	-110	-116	-73	-38	-125	-213	-132	301	1,784	883
NOPAT Margin	-7.53%	-7.99%	-6.61%	-3.21%	-1.31%	-3.68%	-5.00%	-2.40%	4.36%	22.22%	9.58%
Net Nonoperating Expense Percent (NNEP)	-9.11%	-7.25%	-5.65%	-2.68%	-2.21%	-7.90%	-21.20%	-10.30%	5.01%	15.35%	3.26%
Return On Investment Capital (ROIC_SIMPLE)	-	-	-	-	-	-	-	-	-	-	11.29%
Cost of Revenue to Revenue	27.10%	26.84%	27.14%	0.00%	27.88%	29.32%	29.95%	31.24%	27.71%	25.65%	26.59%
SG&A Expenses to Revenue	10.95%	10.04%	11.30%	11.34%	9.03%	8.79%	9.19%	7.36%	6.50%	8.48%	4.80%
R&D to Revenue	20.02%	20.62%	19.79%	17.62%	18.61%	22.54%	26.79%	25.77%	23.27%	22.54%	21.52%
Operating Expenses to Revenue	83.65%	84.57%	82.30%	104.58%	73.99%	75.93%	77.19%	72.19%	66.67%	65.83%	59.94%
Earnings before Interest and Taxes (EBIT)	-100	-149	-156	-76	9.30	-143	-302	-180	594	997	1,599
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	-45	-80	39	200	321	385	413	486	1,244	1,669	2,383
Valuation Ratios	-	-	-	-	-	-	-	-	-	-	-
Price to Book Value (P/BV)	31.86	13.11	15.93	15.87	13.71	22.41	61.25	236.80	43.73	20.34	14.79
Price to Tangible Book Value (P/TBV)	57.22	17.06	25.91	37.07	0.00	0.00	0.00	0.00	0.00	72.78	46.39
Price to Revenue (P/Rev)	16.75	8.51	6.89	8.10	7.50	7.24	9.13	9.04	11.09	13.10	12.55
Price to Earnings (P/E)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	173.87	40.79	102.09
Dividend Yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Earnings Yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.58%	2.45%	0.98%
Enterprise Value to Invested Capital (EV/IC)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Enterprise Value to Revenue (EV/Rev)	15.94	7.46	5.96	7.22	6.83	6.89	9.03	8.86	10.59	12.38	11.64
Enterprise Value to EBITDA (EV/EBITDA)	0.00	0.00	269.61	82.11	61.70	60.94	93.12	100.33	58.70	59.52	45.03
Enterprise Value to EBIT (EV/EBIT)	0.00	0.00	0.00	0.00	2,128.35	0.00	0.00	0.00	123.01	99.70	67.12
Enterprise Value to NOPAT (EV/NOPAT)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	242.77	55.70	121.49
Enterprise Value to Operating Cash Flow (EV/OCF)	41.93	15.62	12.04	15.80	18.75	22.66	25.57	24.55	26.28	30.50	28.87
Enterprise Value to Free Cash Flow (EV/FCFF)	94.76	61.14	47.41	0.00	0.00	459.28	0.00	52.77	61.04	138.19	116.24
Leverage & Solvency	-	-	-	-	-	-	-	-	-	-	-
Debt to Equity	0.85	0.56	0.69	1.62	0.90	2.80	4.22	17.51	1.14	0.19	0.00
Long-Term Debt to Equity	0.00	0.56	0.69	1.16	0.90	2.80	2.18	0.00	0.00	0.00	0.00
Financial Leverage	-1.29	-1.55	-1.86	-1.89	-1.44	-1.34	-1.45	-2.69	-2.84	-1.50	-1.18
Leverage Ratio	3.30	3.28	3.81	4.83	4.53	5.82	10.35	23.11	13.66	4.99	3.35
Compound Leverage Factor	4.04	3.80	4.40	6.72	-36.34	9.44	15.95	26.63	13.04	4.94	3.35
Debt to Total Capital	45.83%	35.85%	40.85%	61.89%	47.41%	73.68%	80.86%	94.60%	53.25%	15.72%	0.00%
Short-Term Debt to Total Capital	45.83%	0.00%	0.00%	17.74%	0.00%	0.00%	39.05%	94.60%	53.25%	15.72%	0.00%
Long-Term Debt to Total Capital	0.00%	35.85%	40.85%	44.15%	47.41%	73.68%	41.81%	0.00%	0.00%	0.00%	0.00%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	8.27%	0.00%	0.00%	0.71%	0.00%	0.00%	3.24%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	45.90%	64.15%	59.15%	37.40%	52.59%	26.32%	15.90%	5.40%	46.75%	84.28%	100.00%
Debt to EBITDA	-10.78	-6.28	13.52	9.61	4.46	8.01	7.82	7.57	1.60	0.58	0.00
Net Debt to EBITDA	18.60	18.05	-42.26	-10.16	-6.07	-3.16	-1.37	-2.08	-2.77	-3.47	0.00
Long-Term Debt to EBITDA	0.00	-6.28	13.52	6.86	4.46	8.01	4.04	0.00	0.00	0.00	0.00
Debt to NOPAT	-6.97	-4.54	-4.52	-26.32	-37.76	-24.61	-15.15	-27.82	6.62	0.54	0.00
Net Debt to NOPAT	12.03	13.06	14.13	27.84	51.45	9.72	2.65	7.64	-11.46	-3.25	0.00
Long-Term Debt to NOPAT	0.00	-4.54	-4.52	-18.78	-37.76	-24.61	-7.84	0.00	0.00	0.00	0.00
Altman Z-Score	6.69	3.98	3.00	2.88	3.15	2.33	2.50	2.50	3.95	4.87	5.15
Noncontrolling Interest Sharing Ratio	8.42%	5.98%	0.00%	1.13%	0.79%	0.00%	6.92%	13.26%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-	-	-	-	-	-
Current Ratio	1.04	2.09	1.65	1.97	1.78	1.91	0.91	0.77	0.78	0.89	0.94
Quick Ratio	0.97	1.93	1.50	1.84	1.65	1.78	0.81	0.71	0.68	0.77	0.82
Cash Flow Metrics	-	-	-	-	-	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	156	168	221	-104	-524	51	-457	923	1,196	719	923
Operating Cash Flow to CapEx	1,043.79%	908.41%	531.70%	926.88%	804.57%	483.07%	1,295.69%	1,029.41%	1,898.50%	2,077.55%	1,509.34%
Free Cash Flow to Firm to Interest Expense	7.00	7.19	9.01	-3.53	-6.25	0.58	-2.80	33.69	43.97	86.63	307.70
Operating Cash Flow to Interest Expense	15.82	28.15	35.46	35.07	12.58	11.68	9.20	72.43	102.11	392.48	1,238.67
Operating Cash Flow Less CapEx to Interest Expense	14.30	25.05	28.79	31.29	11.02	9.26	8.49	65.40	96.74	373.59	1,156.60
Efficiency Ratios	-	-	-	-	-	-	-	-	-	-	-
Asset Turnover	0.54	0.57	0.56	0.48	0.46	0.44	0.44	0.49	0.52	0.47	0.42
Accounts Receivable Turnover	5.34	4.91	4.50	5.06	5.53	4.21	3.74	3.25	2.99	3.16	3.30
Inventory Turnover	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Fixed Asset Turnover	16.63	15.31	10.69	9.39	10.19	10.58	12.77	16.27	19.35	22.44	24.64
Accounts Payable Turnover	18.14	17.05	14.50	0.00	13.18	14.60	21.16	18.59	14.67	16.57	14.07
Days Sales Outstanding (DSO)	68.41	74.28	81.19	72.17	66.05	86.71	97.66	112.22	121.95	115.53	110.50
Days Inventory Outstanding (DIO)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Days Payable Outstanding (DPO)	20.12	21.41	25.17	0.00	27.70	25.00	17.25	19.63	24.88	22.03	25.94
Cash Conversion Cycle (CCC)	48.29	52.88	56.02	72.17	38.35	61.72	80.41	92.59	97.07	93.50	84.56
Capital & Investment Metrics	-	-	-	-	-	-	-	-	-	-	-
Invested Capital	-265	-543	-880	-849	-362	-539	-294	-1,350	-2,245	-1,180	-1,220
Invested Capital Turnover	-6.11	-3.41	-2.47	-2.63	-4.79	-7.57	-10.22	-6.69	-3.83	-4.69	-7.68
Increase / (Decrease) in Invested Capital	-226	-278	-337	31	486	-176	244	-1,055	-895	1,065	-40
Enterprise Value (EV)	14,794	10,290	10,461	16,406	19,794	23,469	38,430	48,718	73,005	99,359	107,298
Market Capitalization	15,547	11,728	12,101	18,414	21,742	24,688	38,864	49,728	76,451	105,148	115,756
Book Value per Share	$5.83	$9.99	$8.27	$12.49	$16.53	$11.42	$6.52	$2.11	$5.72	$15.97	$11.73
Tangible Book Value per Share	$3.25	$7.67	$5.09	$5.35	($0.49)	($11.08)	($26.43)	($29.33)	($4.88)	$4.46	$3.74
Total Capital	1,063	1,395	1,284	3,102	3,016	4,186	3,990	3,887	3,740	6,134	7,824
Total Debt	487	500	525	1,920	1,430	3,084	3,226	3,677	1,992	964	0.00
Total Long-Term Debt	0.00	500	525	1,370	1,430	3,084	1,668	0.00	0.00	0.00	0.00
Net Debt	-841	-1,438	-1,640	-2,031	-1,949	-1,218	-563	-1,010	-3,446	-5,788	-8,459
Capital Expenditures (CapEx)	34	73	163	112	131	214	116	193	146	157	246
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-260	-358	-600	-816	-1,192	-1,310	-1,813	-1,849	-2,088	-2,448	-3,368
Debt-free Net Working Capital (DFNWC)	529	927	775	2,587	1,612	2,438	1,089	1,785	302	131	-465
Net Working Capital (NWC)	42	927	775	2,037	1,612	2,438	-469	-1,891	-1,690	-833	-465
Net Nonoperating Expense (NNE)	61	83	87	49	44	142	286	135	-139	-794	-251
Net Nonoperating Obligations (NNO)	-841	-1,438	-1,640	-2,031	-1,949	-1,640	-1,058	-1,560	-3,994	-6,350	-9,045
Total Depreciation and Amortization (D&A)	54	69	194	276	312	528	714	665	650	673	784
Debt-free, Cash-free Net Working Capital to Revenue	-28.03%	-26.00%	-34.19%	-35.90%	-41.10%	-38.44%	-42.59%	-33.61%	-30.29%	-30.49%	-36.53%
Debt-free Net Working Capital to Revenue	56.99%	67.26%	44.16%	113.79%	55.58%	71.51%	25.58%	32.45%	4.38%	1.63%	-5.04%
Net Working Capital to Revenue	4.50%	67.26%	44.16%	89.58%	55.58%	71.51%	-11.03%	-34.38%	-24.51%	-10.38%	-5.04%
Earnings Adjustments	-	-	-	-	-	-	-	-	-	-	-
Adjusted Basic Earnings per Share	($0.67)	($0.86)	($0.80)	($0.54)	($0.29)	($0.92)	($1.73)	($0.90)	$1.45	$8.07	$1.71
Adjusted Weighted Average Basic Shares Outstanding	255.03M	272.55M	275.53M	281.47M	290.97M	289.12M	289.20M	295.50M	303.20M	319.20M	662.50M
Adjusted Diluted Earnings per Share	($0.67)	($0.86)	($0.80)	($0.54)	($0.29)	($0.92)	($1.73)	($0.90)	$1.28	$7.28	$1.60
Adjusted Weighted Average Diluted Shares Outstanding	255.03M	272.55M	275.53M	281.47M	290.97M	289.12M	289.20M	295.50M	342.30M	354M	709.30M
Adjusted Basic & Diluted Earnings per Share	($0.67)	($0.86)	($0.80)	($0.54)	($0.29)	($0.92)	$0.00	$0.00	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	244.86M	261.30M	271.80M	275.10M	283.50M	290.70M	292.22M	299.21M	308.59M	325.60M	668.90M
Normalized Net Operating Profit after Tax (NOPAT)	-70	-110	-116	-73	-38	-125	-213	-132	301	479	883
Normalized NOPAT Margin	-7.53%	-7.99%	-6.61%	-3.21%	-1.31%	-3.68%	-5.00%	-2.40%	4.36%	5.96%	9.58%
Pre Tax Income Margin	-13.13%	-12.50%	-10.26%	-4.63%	-2.57%	-6.80%	-10.93%	-3.77%	8.22%	12.31%	17.30%
Debt Service Ratios	-	-	-	-	-	-	-	-	-	-	-
EBIT to Interest Expense	-4.47	-6.36	-6.35	-2.56	0.11	-1.61	-1.85	-6.56	21.82	120.07	532.90
NOPAT to Interest Expense	-3.13	-4.71	-4.74	-2.46	-0.45	-1.41	-1.30	-4.82	11.06	214.90	294.40
EBIT Less CapEx to Interest Expense	-5.98	-9.46	-13.02	-6.34	-1.45	-4.03	-2.56	-13.60	16.44	101.18	450.83
NOPAT Less CapEx to Interest Expense	-4.65	-7.80	-11.41	-6.25	-2.02	-3.83	-2.01	-11.86	5.68	196.01	212.33
Payout Ratios	-	-	-	-	-	-	-	-	-	-	-
Dividend Payout Ratio	0.00%	-3.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Augmented Payout Ratio	0.00%	-3.32%	-202.46%	-212.03%	-402.93%	-448.73%	-236.14%	-334.19%	62.02%	21.99%	0.00%

This table displays calculated financial ratios and metrics derived from Palo Alto Networks' official financial filings.

Metric	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026	Q3 2026
Period end date	10/31/2023	1/31/2024	4/30/2024	7/31/2024	10/31/2024	1/31/2025	4/30/2025	7/31/2025	10/31/2025	1/31/2026	4/30/2026
DEI Shares Outstanding	-	-	-	-	-	-	-	-	-	-	816,000,000.00
DEI Adjusted Shares Outstanding	-	-	-	-	-	-	-	-	-	-	816,000,000.00
DEI Earnings Per Adjusted Shares Outstanding	-	-	-	-	-	-	-	-	-	-	-0.22
Growth Metrics	-	-	-	-	-	-	-	-	-	-	-
Revenue Growth	20.13%	19.33%	15.34%	12.09%	13.88%	14.29%	15.33%	15.84%	15.66%	14.93%	31.15%
EBITDA Growth	107.91%	22.29%	43.88%	2.57%	24.46%	72.07%	20.29%	60.12%	13.14%	40.93%	-36.08%
EBIT Growth	592.96%	51.48%	82.64%	-0.90%	29.53%	135.50%	22.76%	85.41%	11.65%	68.40%	-150.00%
NOPAT Growth	1,573.42%	1,636.01%	202.82%	46.58%	84.33%	-71.37%	-5.82%	-20.23%	-8.17%	57.78%	-169.43%
Net Income Growth	871.00%	1,974.70%	158.63%	57.09%	80.59%	-84.70%	-5.99%	-29.05%	-4.84%	61.80%	-167.56%
EPS Growth	833.33%	1,974.70%	154.84%	49.33%	76.79%	-84.43%	-5.13%	-32.14%	-4.08%	60.53%	-159.46%
Operating Cash Flow Growth	23.39%	-0.66%	22.40%	23.81%	-1.07%	-19.29%	18.87%	99.10%	17.28%	-0.54%	38.69%
Free Cash Flow Firm Growth	-22.55%	-118.28%	-163.83%	-173.98%	-183.88%	410.37%	199.28%	131.75%	183.21%	-360.10%	-3,018.96%
Invested Capital Growth	-61.56%	53.84%	56.40%	47.42%	46.30%	-73.36%	-78.81%	-3.38%	-39.60%	168.87%	1,671.10%
Revenue Q/Q Growth	-3.85%	5.16%	0.49%	10.31%	-2.32%	5.55%	1.40%	10.80%	-2.46%	4.85%	15.73%
EBITDA Q/Q Growth	-10.08%	-31.91%	40.77%	18.99%	9.11%	-5.86%	-1.58%	58.39%	-23.12%	17.74%	-55.34%
EBIT Q/Q Growth	-11.39%	-51.56%	83.30%	25.96%	15.82%	-11.93%	-4.45%	90.23%	-30.41%	33.25%	-128.42%
NOPAT Q/Q Growth	-18.91%	367.28%	-71.62%	36.31%	1.97%	-27.42%	-6.65%	15.45%	17.48%	24.71%	-141.01%
Net Income Q/Q Growth	-14.71%	799.54%	-84.04%	28.30%	-1.96%	-23.78%	-1.95%	-3.17%	31.60%	29.34%	-140.97%
EPS Q/Q Growth	-25.33%	799.54%	-83.84%	41.77%	-11.61%	-61.62%	-2.63%	2.70%	23.68%	29.79%	-136.07%
Operating Cash Flow Q/Q Growth	268.51%	-54.78%	-23.35%	-3.06%	194.44%	-63.11%	12.89%	62.37%	73.49%	-68.72%	57.22%
Free Cash Flow Firm Q/Q Growth	11.49%	-121.27%	-210.24%	-0.57%	-26.40%	178.70%	-0.76%	-67.84%	231.25%	-346.11%	-1,013.20%
Invested Capital Q/Q Growth	-23.18%	70.65%	5.80%	-54.40%	-25.80%	5.25%	2.84%	10.73%	-69.88%	146.74%	2,116.41%
Profitability Metrics	-	-	-	-	-	-	-	-	-	-	-
Gross Margin	74.83%	74.73%	74.12%	73.80%	74.09%	73.46%	72.94%	73.23%	74.21%	73.59%	67.56%
EBITDA Margin	23.51%	15.22%	21.33%	23.01%	25.70%	22.92%	22.25%	31.80%	25.06%	28.14%	10.86%
Operating Margin	11.46%	2.71%	8.90%	10.89%	13.40%	10.65%	9.56%	19.60%	12.49%	15.30%	-6.10%
EBIT Margin	15.20%	7.00%	12.77%	14.58%	17.29%	14.43%	13.60%	23.34%	16.65%	21.16%	-5.20%
Profit (Net Income) Margin	10.34%	88.45%	14.05%	16.34%	16.40%	11.84%	11.45%	10.01%	13.50%	16.65%	-5.90%
Tax Burden Percent	68.72%	1,289.23%	110.99%	112.13%	95.14%	82.30%	84.41%	42.89%	81.07%	78.69%	113.46%
Interest Burden Percent	98.98%	97.98%	99.09%	99.91%	99.68%	99.72%	99.78%	99.97%	100.00%	100.00%	100.00%
Effective Tax Rate	31.28%	-1,189.23%	-10.99%	-12.13%	4.86%	17.70%	15.59%	57.11%	18.93%	21.31%	0.00%
Return on Invested Capital (ROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-4.50%
ROIC Less NNEP Spread (ROIC-NNEP)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-3.84%
Return on Net Nonoperating Assets (RNNOA)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.63%
Return on Equity (ROE)	45.84%	89.52%	85.88%	74.52%	67.66%	23.38%	21.16%	17.45%	15.32%	16.26%	-2.87%
Cash Return on Invested Capital (CROIC)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-144.27%	-103.50%
Operating Return on Assets (OROA)	8.01%	3.35%	6.20%	6.79%	8.15%	6.30%	6.04%	9.88%	7.25%	9.12%	-1.61%
Return on Assets (ROA)	5.45%	42.33%	6.82%	7.60%	7.73%	5.17%	5.09%	4.24%	5.88%	7.17%	-1.83%
Return on Common Equity (ROCE)	45.84%	89.52%	85.88%	74.52%	67.66%	23.38%	21.16%	17.45%	15.32%	16.26%	-2.87%
Return on Equity Simple (ROE_SIMPLE)	28.28%	52.25%	54.78%	0.00%	46.25%	19.68%	17.12%	0.00%	0.00%	0.00%	0.00%
Net Operating Profit after Tax (NOPAT)	148	691	196	267	273	198	185	213	251	312	-128
NOPAT Margin	7.87%	34.99%	9.88%	12.21%	12.74%	8.76%	8.07%	8.41%	10.13%	12.04%	-4.27%
Net Nonoperating Expense Percent (NNEP)	1.29%	27.58%	2.01%	1.75%	1.27%	1.07%	1.12%	0.53%	0.92%	1.48%	-0.66%
Return On Investment Capital (ROIC_SIMPLE)	-	11.18%	-	-	-	2.86%	2.43%	2.73%	2.89%	3.33%	-0.44%
Cost of Revenue to Revenue	25.17%	25.27%	25.88%	26.20%	25.91%	26.54%	27.06%	26.77%	25.79%	26.41%	32.45%
SG&A Expenses to Revenue	6.39%	15.27%	5.98%	6.41%	4.57%	6.81%	7.16%	1.08%	7.24%	6.86%	10.53%
R&D to Revenue	21.80%	22.68%	23.04%	22.60%	22.46%	22.40%	21.60%	19.85%	21.34%	19.70%	24.45%
Operating Expenses to Revenue	63.37%	72.02%	65.22%	62.91%	60.70%	62.81%	63.39%	53.63%	61.72%	58.29%	73.65%
Earnings before Interest and Taxes (EBIT)	286	138	254	319	370	326	311	592	412	549	-156
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)	442	301	423	504	550	517	509	807	620	730	326
Valuation Ratios	-	-	-	-	-	-	-	-	-	-	-
Price to Book Value (P/BV)	34.55	24.50	21.04	20.34	19.85	18.98	17.12	14.79	17.00	13.13	5.29
Price to Tangible Book Value (P/TBV)	0.00	196.05	136.77	72.78	111.59	77.92	50.53	46.39	43.65	101.69	0.00
Price to Revenue (P/Rev)	10.41	14.18	12.06	13.10	14.16	14.12	13.95	12.55	15.42	12.47	13.80
Price to Earnings (P/E)	122.16	46.88	38.40	40.79	42.91	96.47	99.99	102.09	131.90	96.22	173.60
Dividend Yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Earnings Yield	0.82%	2.13%	2.60%	2.45%	2.33%	1.04%	1.00%	0.98%	0.76%	1.04%	0.58%
Enterprise Value to Invested Capital (EV/IC)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	119.14	6.55
Enterprise Value to Revenue (EV/Rev)	9.72	13.49	11.39	12.38	13.33	13.27	13.04	11.64	14.35	11.67	13.26
Enterprise Value to EBITDA (EV/EBITDA)	47.57	66.49	53.57	59.52	62.15	57.05	55.63	45.03	55.86	43.29	56.67
Enterprise Value to EBIT (EV/EBIT)	83.62	114.79	88.80	99.70	102.19	89.69	87.25	67.12	83.53	61.91	100.73
Enterprise Value to NOPAT (EV/NOPAT)	158.27	64.25	51.14	55.70	57.47	121.64	125.65	121.49	159.03	118.04	228.57
Enterprise Value to Operating Cash Flow (EV/OCF)	22.84	33.17	28.10	30.50	34.08	36.60	36.07	28.87	34.48	29.05	33.36
Enterprise Value to Free Cash Flow (EV/FCFF)	46.82	160.17	118.89	138.19	172.19	74.32	75.95	116.24	94.55	0.00	0.00
Leverage & Solvency	-	-	-	-	-	-	-	-	-	-	-
Debt to Equity	0.90	0.42	0.26	0.19	0.11	0.08	0.05	0.00	0.00	0.00	0.05
Long-Term Debt to Equity	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.04
Financial Leverage	-2.67	-1.51	-1.44	-1.50	-1.53	-1.21	-1.18	-1.18	-1.24	-1.03	-0.42
Leverage Ratio	10.21	6.18	5.63	4.99	4.35	3.66	3.41	3.35	3.01	2.91	1.96
Compound Leverage Factor	10.11	6.06	5.58	4.98	4.34	3.65	3.41	3.35	3.01	2.91	1.96
Debt to Total Capital	47.28%	29.48%	20.65%	15.72%	9.85%	7.73%	5.03%	0.00%	0.00%	0.00%	4.66%
Short-Term Debt to Total Capital	47.28%	29.48%	20.65%	15.72%	9.85%	7.73%	5.03%	0.00%	0.00%	0.00%	0.55%
Long-Term Debt to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	4.11%
Preferred Equity to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Noncontrolling Interests to Total Capital	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Common Equity to Total Capital	52.72%	70.52%	79.35%	84.28%	90.15%	92.27%	94.97%	100.00%	100.00%	100.00%	95.34%
Debt to EBITDA	1.32	1.19	0.70	0.58	0.36	0.27	0.18	0.00	0.00	0.00	0.54
Net Debt to EBITDA	-3.35	-3.38	-3.16	-3.47	-3.86	-3.64	-3.88	0.00	0.00	0.00	-2.27
Long-Term Debt to EBITDA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.48
Debt to NOPAT	4.40	1.15	0.67	0.54	0.34	0.57	0.42	0.00	0.00	0.00	2.20
Net Debt to NOPAT	-11.15	-3.27	-3.01	-3.25	-3.57	-7.76	-8.76	0.00	0.00	0.00	-9.16
Long-Term Debt to NOPAT	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	1.94
Altman Z-Score	3.93	5.00	4.67	4.76	5.38	5.50	5.57	5.01	6.57	5.42	5.00
Noncontrolling Interest Sharing Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Liquidity Ratios	-	-	-	-	-	-	-	-	-	-	-
Current Ratio	0.86	0.83	0.84	0.89	0.84	0.84	0.90	0.94	0.99	1.04	0.86
Quick Ratio	0.77	0.74	0.73	0.77	0.72	0.73	0.78	0.82	0.85	0.91	0.73
Cash Flow Metrics	-	-	-	-	-	-	-	-	-	-	-
Free Cash Flow to Firm (FCFF)	1,202	-256	-793	-797	-1,008	793	787	253	839	-2,064	-22,972
Operating Cash Flow to CapEx	4,146.74%	1,960.23%	1,414.17%	1,081.65%	3,423.13%	1,172.42%	920.50%	1,182.85%	2,108.33%	325.88%	1,049.40%
Free Cash Flow to Firm to Interest Expense	414.34	-91.28	-344.73	-2,657.93	-839.93	881.38	1,124.56	1,265.65	0.00	0.00	0.00
Operating Cash Flow to Interest Expense	526.21	246.43	229.96	1,709.00	1,258.00	618.78	898.14	5,104.00	0.00	0.00	0.00
Operating Cash Flow Less CapEx to Interest Expense	513.52	233.86	213.70	1,551.00	1,221.25	566.00	800.57	4,672.50	0.00	0.00	0.00
Efficiency Ratios	-	-	-	-	-	-	-	-	-	-	-
Asset Turnover	0.53	0.48	0.49	0.47	0.47	0.44	0.44	0.42	0.44	0.43	0.31
Accounts Receivable Turnover	5.44	4.74	4.93	3.16	6.51	5.05	4.84	3.30	7.72	5.48	4.42
Inventory Turnover	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Fixed Asset Turnover	20.41	21.60	22.52	22.44	23.23	24.13	24.74	24.64	25.32	23.47	24.30
Accounts Payable Turnover	14.91	12.72	19.87	16.57	12.47	13.66	13.65	14.07	11.67	12.75	11.28
Days Sales Outstanding (DSO)	67.13	76.96	74.00	115.53	56.06	72.22	75.38	110.50	47.28	66.62	82.63
Days Inventory Outstanding (DIO)	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Days Payable Outstanding (DPO)	24.49	28.69	18.37	22.03	29.28	26.72	26.73	25.94	31.28	28.63	32.36
Cash Conversion Cycle (CCC)	42.64	48.27	55.63	93.50	26.78	45.50	48.64	84.56	16.00	37.99	50.27
Capital & Investment Metrics	-	-	-	-	-	-	-	-	-	-	-
Invested Capital	-2,766	-812	-765	-1,180	-1,485	-1,407	-1,367	-1,220	-2,073	969	21,477
Invested Capital Turnover	-3.22	-5.86	-6.19	-4.69	-3.90	-7.73	-8.33	-7.68	-5.37	-45.18	1.05
Increase / (Decrease) in Invested Capital	-1,054	947	989	1,065	1,281	-595	-603	-40	-588	2,376	22,844
Enterprise Value (EV)	70,059	101,563	88,754	99,359	110,459	113,758	115,697	107,298	137,127	115,450	140,685
Market Capitalization	74,995	106,732	93,987	105,148	117,323	121,016	123,766	115,756	147,319	123,348	146,325
Book Value per Share	$7.03	$13.82	$13.83	$15.97	$18.16	$19.43	$10.92	$11.73	$12.95	$13.48	$33.91
Tangible Book Value per Share	($3.39)	$1.73	$2.13	$4.46	$3.23	$4.73	$3.70	$3.74	$5.05	$1.74	($1.86)
Total Capital	4,117	6,179	5,630	6,134	6,558	6,909	7,614	7,824	8,665	9,393	29,020
Total Debt	1,947	1,822	1,163	964	646	534	383	0.00	0.00	0.00	1,352
Total Long-Term Debt	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	1,192
Net Debt	-4,936	-5,169	-5,232	-5,788	-6,865	-7,259	-8,069	-8,459	-10,192	-7,898	-5,640
Capital Expenditures (CapEx)	37	35	37	47	44	48	68	86	84	170	83
Debt-free, Cash-free Net Working Capital (DFCFNWC)	-2,983	-2,868	-2,894	-2,448	-3,905	-3,912	-3,724	-3,368	-4,318	-4,176	-4,244
Debt-free Net Working Capital (DFNWC)	911	503	-3.50	131	-514	-679	-423	-465	-108	360	-1,133
Net Working Capital (NWC)	-1,036	-1,319	-1,166	-833	-1,160	-1,212	-807	-465	-108	360	-1,293
Net Nonoperating Expense (NNE)	-46	-1,056	-83	-90	-78	-69	-77	-41	-84	-120	49
Net Nonoperating Obligations (NNO)	-4,936	-5,169	-5,232	-6,350	-7,397	-7,782	-8,598	-9,045	-10,738	-8,424	-6,191
Total Depreciation and Amortization (D&A)	156	162	170	184	180	192	198	215	208	181	482
Debt-free, Cash-free Net Working Capital to Revenue	-41.39%	-38.10%	-37.14%	-30.49%	-47.12%	-45.64%	-41.96%	-36.53%	-45.18%	-42.21%	-40.01%
Debt-free Net Working Capital to Revenue	12.64%	6.68%	-0.04%	1.63%	-6.20%	-7.92%	-4.77%	-5.04%	-1.13%	3.64%	-10.68%
Net Working Capital to Revenue	-14.37%	-17.52%	-14.97%	-10.38%	-14.00%	-14.15%	-9.09%	-5.04%	-1.13%	3.64%	-12.19%
Earnings Adjustments	-	-	-	-	-	-	-	-	-	-	-
Adjusted Basic Earnings per Share	$0.63	$2.74	$0.86	$1.12	$1.07	$0.41	$0.39	$0.38	$0.49	$0.61	($0.22)
Adjusted Weighted Average Basic Shares Outstanding	310.10M	639.20M	322.90M	319.20M	326.80M	659.30M	665.10M	662.50M	679M	704M	801M
Adjusted Diluted Earnings per Share	$0.56	$2.45	$0.79	$1.12	$0.99	$0.38	$0.37	$0.38	$0.47	$0.61	($0.22)
Adjusted Weighted Average Diluted Shares Outstanding	349.80M	715M	354.60M	354M	354.50M	709M	707.40M	709.30M	709M	711M	801M
Adjusted Basic & Diluted Earnings per Share	$0.00	$0.00	$0.00	$1.12	$0.00	$0.00	$0.00	$0.38	$0.00	$0.00	$0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding	315.30M	646.20M	323.80M	325.60M	328.10M	662.10M	666.80M	668.90M	697M	816M	815M
Normalized Net Operating Profit after Tax (NOPAT)	148	38	124	167	273	198	185	348	251	312	-128
Normalized NOPAT Margin	7.87%	1.90%	6.23%	7.62%	12.74%	8.76%	8.07%	13.72%	10.13%	12.04%	-4.27%
Pre Tax Income Margin	15.05%	6.86%	12.66%	14.57%	17.23%	14.39%	13.56%	23.33%	16.65%	21.16%	-5.20%
Debt Service Ratios	-	-	-	-	-	-	-	-	-	-	-
EBIT to Interest Expense	98.45	49.39	110.22	1,064.33	308.17	361.89	444.57	2,960.00	0.00	0.00	0.00
NOPAT to Interest Expense	50.99	246.79	85.27	891.07	227.16	219.82	263.85	1,066.15	0.00	0.00	0.00
EBIT Less CapEx to Interest Expense	85.76	36.82	93.96	906.33	271.42	309.11	347.00	2,528.50	0.00	0.00	0.00
NOPAT Less CapEx to Interest Expense	38.30	234.22	69.01	733.07	190.41	167.05	166.28	634.65	0.00	0.00	0.00
Payout Ratios	-	-	-	-	-	-	-	-	-	-	-
Dividend Payout Ratio	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Augmented Payout Ratio	51.59%	2.93%	23.15%	21.99%	18.29%	39.86%	0.00%	0.00%	0.00%	0.00%	118.64%

Financials Breakdown Chart

Key Financial Trends

Palo Alto Networks (NASDAQ:PANW) has shown strong top-line growth over the last several years, but the latest quarter also highlights the company’s continued reliance on large operating expenses and acquisition-related balance sheet items. Overall, the business is still scaling well, with solid cash generation and a strong net cash position, but profitability remains somewhat uneven from quarter to quarter.

Revenue continued to trend higher year over year, rising to $2.59 billion in Q2 2026 from $2.47 billion in Q1 2026 and $2.19 billion in Q4 2025.
Gross profit expanded to $1.91 billion in Q2 2026, showing PANW still converts a large share of revenue into gross profit.
Operating cash flow remained strong at $554 million in Q2 2026, following $1.77 billion in Q1 2026.
The company ended Q2 2026 with $4.16 billion in cash and equivalents plus $3.36 billion in long-term investments, providing substantial liquidity.
Total common equity improved to $9.39 billion in Q2 2026 from $8.67 billion in Q1 2026 and $5.91 billion a year earlier.
Diluted EPS held at $0.61 in Q2 2026, up from $0.47 in Q1 2026.
Deferred revenue remains very large, with $6.25 billion current and $6.18 billion noncurrent deferred revenue in Q2 2026, which supports a sizable recurring revenue base.
The company continues to invest heavily in marketing and R&D, which helps growth but also keeps operating margins under pressure.
Operating income was only $397 million in Q2 2026 on $2.59 billion of revenue, reflecting a still-thin operating margin.
Goodwill remains high at $6.93 billion, suggesting the balance sheet still carries meaningful acquisition risk.

Looking at the longer trend, PANW’s revenue has climbed steadily from roughly $1.56 billion in Q1 2023 to $2.59 billion in Q2 2026, a strong multi-year growth trajectory. Net income has also improved from near break-even and occasional losses in earlier periods to more consistent quarterly profitability in 2025 and 2026.

That said, earnings quality should be viewed carefully. A meaningful portion of cash flow comes from non-cash adjustments, and investing activity has included large acquisitions in recent quarters. The business looks financially healthy overall, but investors should expect continued volatility in reported margins as PANW balances growth, acquisitions, and heavy go-to-market spending.

06/18/26 07:22 PM ETAI Generated. May Contain Errors.

Palo Alto Networks Financials - Frequently Asked Questions

According to the most recent income statement we have on file, Palo Alto Networks' fiscal year ends in July. Their fiscal year 2025 ended on July 31, 2025.

Palo Alto Networks' net income appears to be on an upward trend, with a most recent value of $1.13 billion in 2025, falling from -$131.30 million in 2015. The previous period was $2.58 billion in 2024. Check out Palo Alto Networks' forecast to explore projected trends and price targets.

Palo Alto Networks' total operating income in 2025 was $1.24 billion, based on the following breakdown:

Total Gross Profit: $6.77 billion
Total Operating Expenses: $5.53 billion

Over the last 10 years, Palo Alto Networks' total revenue changed from $928.10 million in 2015 to $9.22 billion in 2025, a change of 893.6%.

Palo Alto Networks' total liabilities were at $15.75 billion at the end of 2025, a 6.3% increase from 2024, and a 1,033.7% increase since 2015.

In the past 10 years, Palo Alto Networks' cash and equivalents has ranged from $375.80 million in 2015 to $2.96 billion in 2020, and is currently $2.27 billion as of their latest financial filing in 2025.

Over the last 10 years, Palo Alto Networks' book value per share changed from 5.83 in 2015 to 11.73 in 2025, a change of 101.2%.

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Financial statements for NASDAQ:PANW last updated on 6/8/2026 by MarketBeat.com Staff. New filings and market data are monitored continuously.

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Palo Alto Networks (PANW) Financials

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Palo Alto Networks (PANW) Financials

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