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

Palo Alto Networks, Inc. (PANW) reported diluted earnings per share of $1.60 for fiscal year 2025. 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. Financials

PANW

Trailing 12 months to April 30, 2026

Revenue $10.6B +19.5% YoY

Net Income $842.9M -31.9% YoY

EPS (Diluted) $1.22 YoY not available

Free Cash Flow $3.8B +26.4% YoY

Source SEC Filings (10-K/10-Q) Latest period Q3 FY2026, ended Apr 30, 2026 Reported Jun 3, 2026 Currency USD FYE July

Palo Alto Networks, Inc. (PANW) reported $10.6B in revenue over the twelve months to Apr 30, 2026, up 19.5% from the prior twelve months. 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 FY2025 2026-08-30

Palo Alto Networks converts expanding revenue into cash as margins widen, while its balance sheet still carries tight near-term coverage.

FY2024's unusually high net income was amplified by a -$1.59B tax expense; FY2025's result therefore better reflects operating performance than the prior year's headline profit. In FY2025, operating cash flow of $3.72B exceeded net income, while free cash flow of $3.47B stayed close behind, showing earnings converted into cash despite the distorted comparison created by the tax benefit.

Gross margin rose to 73.4% by FY2025 from 70.1% in FY2021, giving the company a modest product-economics lift rather than explaining the full turnaround. Operating margin simultaneously moved from -7.2% to 13.5%, indicating operating-cost absorption contributed more than gross-margin expansion alone.

The FY2025 current ratio was 0.9x, meaning current liabilities still slightly exceeded current assets; paired with a 2.0x debt-to-equity ratio, this describes a cash-generating business without a conventionally loose short-term balance-sheet cushion.

Financial Health Signals

Financial Health Score 55/100

Scored against operating companies for FY2025. 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 13.5%, meaning the company retains $13 of operating profit per $100 of revenue. This results in a moderate score of 59/100, indicating healthy but not exceptional operating efficiency. This is up from 8.5% the prior year.

Growth

Palo Alto Networks, Inc.'s revenue grew 14.9% year-over-year to $9.2B, a solid pace of expansion. This earns a growth score of 77/100.

Leverage

Palo Alto Networks, Inc. has a moderate D/E ratio of 2.01. This balance of debt and equity financing earns a leverage score of 30/100.

Liquidity

Palo Alto Networks, Inc.'s current ratio of 0.94 is below the typical benchmark, resulting in a score of 16/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

Palo Alto Networks, Inc. converts 37.6% of revenue into free cash flow ($3.5B). This strong cash generation earns a score of 97/100.

Returns

Palo Alto Networks, Inc.'s ROE of 14.5% shows moderate profitability relative to equity, earning a score of 48/100. This is down from 49.9% the prior year.

Altman Z-Score Safe

12.55

Palo Alto Networks, Inc. scores 12.55, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($311.4B) relative to total liabilities ($15.8B). 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

4/8

Palo Alto Networks, Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Cash-Backed

3.28x

For every $1 of reported earnings, Palo Alto Networks, Inc. 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

414.30x

Palo Alto Networks, Inc. earns $414.30 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

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Earnings & Revenue

Revenue

$9.2B

YoY+14.9%

5Y CAGR+22.0%

10Y CAGR+25.8%

Palo Alto Networks, Inc. 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 Networks, Inc.'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 Networks, Inc. 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

Palo Alto Networks, Inc. earned $1.60 per diluted share (EPS) in fiscal year 2025.

Cash & Balance Sheet

Free Cash Flow

$3.5B

YoY+11.9%

5Y CAGR+33.4%

10Y CAGR+27.0%

Palo Alto Networks, Inc. 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

$2.3B

YoY+47.8%

5Y CAGR-5.2%

10Y CAGR+19.7%

Palo Alto Networks, Inc. held $2.3B in cash as of fiscal year 2025; long-term debt is not reported for that period.

Shares Outstanding

669M

Palo Alto Networks, Inc. had 669M shares outstanding in fiscal year 2025.

Dividends Per Share

Not reported for fiscal year 2025.

Margins & Returns

Gross Margin

73.4%

YoY-0.9pp

5Y CAGR+2.7pp

10Y CAGR+0.5pp

Palo Alto Networks, Inc.'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 Networks, Inc.'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 Networks, Inc.'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

14.5%

YoY-35.4pp

5Y CAGR+38.7pp

10Y CAGR+41.4pp

Palo Alto Networks, Inc.'s ROE was 14.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 35.4 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 Networks, Inc. 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 Networks, Inc. repurchased no shares in fiscal year 2025. 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 Networks, Inc. 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

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PANW quarterly income statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Revenue	$10.6B	$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+115.1%	$118.6M
Cost of Revenue	$3.0B	$2.5B+19.1%	$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+118.6%	$32.3M
Gross Profit	$7.6B	$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+113.8%	$86.3M
R&D Expenses	$2.3B	$2.0B+9.7%	$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+80.5%	$21.4M
SG&A Expenses	$699.7M	$442.7M-34.9%	$680.5M+52.0%	$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+99.9%	$13.1M
Operating Income	$1.0B	$1.2B+81.7%	$683.9M+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+137.4%	-$10.4M
Interest Expense	$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	N/A
Income Tax	$553.8M	$461.8M+129.1%	-$1.6B-1355.4%	$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+333.2%	$476K
Net Income	$842.9M	$1.1B-56.0%	$2.6B+486.2%	$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+105.9%	-$12.5M
EPS (Diluted)	$1.22	$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	N/A

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Revenue	$3.0B+15.7%	$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
Cost of Revenue	$974.0M+42.2%	$685.0M+7.4%	$638.0M-6.1%	$679.6M+9.8%	$619.0M+3.3%	$599.0M+8.1%	$554.0M-3.4%	$573.7M
Gross Profit	$2.0B+6.2%	$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
R&D Expenses	$734.0M+43.6%	$511.0M-3.2%	$528.0M+4.7%	$504.1M+2.0%	$494.0M-2.2%	$505.0M+5.0%	$481.0M-2.8%	$494.8M
SG&A Expenses	$316.0M+77.5%	$178.0M-0.6%	$179.0M+570.4%	$26.7M-83.7%	$164.0M+6.5%	$154.0M+57.1%	$98.0M-30.1%	$140.3M
Operating Income	-$183.0M-146.1%	$397.0M+28.5%	$309.0M-37.8%	$496.9M+126.9%	$219.0M-9.1%	$241.0M-15.7%	$286.0M+20.0%	$238.4M
Interest Expense	$0	$0	$0	$0-100.0%	$1.0M0.0%	$1.0M0.0%	$1.0M+233.3%	$300K
Income Tax	$21.0M-82.1%	$117.0M+50.0%	$78.0M-76.9%	$337.8M+589.4%	$49.0M-15.5%	$58.0M+241.2%	$17.0M+143.9%	-$38.7M
Net Income	-$177.0M-141.0%	$432.0M+29.3%	$334.0M+31.5%	$253.9M-3.1%	$262.0M-1.9%	$267.0M-23.9%	$351.0M-1.9%	$357.7M
EPS (Diluted)	-$0.22-136.1%	$0.61+29.8%	$0.47+30.6%	$0.36-2.7%	$0.37-2.6%	$0.38	$0.49-2.0%	$0.50

PANW Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PANW quarterly balance sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Total Assets	$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	N/A
Current Assets	$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	N/A
Cash & Equivalents	$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+696.3%	$40.5M
Inventory	$113.4M-2.2%	$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	N/A
Accounts Receivable	$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	N/A
Goodwill	$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	N/A
Total Liabilities	$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	N/A
Current Liabilities	$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	N/A
Long-Term Debt	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	N/A
Total Equity	$7.8B+51.4%	$5.2B+195.6%	$1.7B+732.6%	$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+420.6%	-$71.5M
Retained Earnings	$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	N/A

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Total Assets	$46.3B+85.2%	$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
Current Assets	$7.7B-7.8%	$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
Cash & Equivalents	$2.4B-43.1%	$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
Inventory	N/A	N/A	N/A	$113.4M	N/A	N/A	N/A	$115.9M
Accounts Receivable	$2.9B+34.8%	$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
Goodwill	$21.9B+216.0%	$6.9B+51.8%	$4.6B0.0%	$4.6B+12.7%	$4.1B0.0%	$4.1B0.0%	$4.1B+20.9%	$3.4B
Total Liabilities	$18.6B+19.3%	$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
Current Liabilities	$9.0B+12.4%	$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
Total Equity	$27.7B+194.6%	$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
Retained Earnings	$3.1B-5.4%	$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

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

PANW Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.

PANW quarterly cash flow statement

Metric	TTM	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Operating Cash Flow	$4.2B	$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+141.0%	$32.1M
Capital Expenditures	$423.2M	$246.2M+57.0%	$156.8M+7.2%	$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+12.0%	$13.0M
Free Cash Flow	$3.8B	$3.5B+11.9%	$3.1B+17.8%	$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+228.8%	$19.1M
Investing Cash Flow	-$2.9B	-$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-12.0%	-$13.0M
Financing Cash Flow	-$1.4B	-$778.9M+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+8400.9%	$2.6M
Share Buybacks	N/A	$0-100.0%	$566.7M+107.8%	$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-8.9%	$90K

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Operating Cash Flow	$871.0M+57.2%	$554.0M-68.7%	$1.8B+73.5%	$1.0B+62.6%	$628.0M+12.7%	$557.0M-63.1%	$1.5B+194.5%	$512.7M
Capital Expenditures	$83.0M-51.2%	$170.0M+102.4%	$84.0M-2.6%	$86.2M+26.8%	$68.0M+41.7%	$48.0M+9.1%	$44.0M-7.2%	$47.4M
Free Cash Flow	$788.0M+105.2%	$384.0M-77.2%	$1.7B+80.5%	$934.8M+66.9%	$560.0M+10.0%	$509.0M-65.3%	$1.5B+215.1%	$465.3M
Investing Cash Flow	-$1.8B-371.3%	$651.0M+166.2%	-$983.0M-28.9%	-$762.7M-47.5%	-$517.0M-35.7%	-$381.0M+30.0%	-$544.0M-222.8%	-$168.5M
Financing Cash Flow	-$899.0M-688.6%	-$114.0M-1525.0%	$8.0M+102.1%	-$373.9M-895.5%	$47.0M+120.3%	-$232.0M-5.5%	-$220.0M-22.7%	-$179.3M
Share Buybacks	N/A	N/A	N/A	$0	$0	$0	$0	$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.

PANW quarterly financial ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20	FY19	FY18	FY17	FY16	FY15	FY14	FY13	FY12	FY11
Gross Margin	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%-0.4pp	72.8%
Operating Margin	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%+10.3pp	-8.8%
Net Margin	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%+10.8pp	-10.6%
Return on Equity	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%	N/A
Return on Assets	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%	N/A
Current Ratio	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	N/A
Debt-to-Equity	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	N/A
FCF Margin	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%+8.5pp	16.1%

Metric	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24
Gross Margin	67.5%-6.0pp	73.6%-0.6pp	74.2%+1.0pp	73.2%+0.2pp	73.0%-0.5pp	73.5%-0.6pp	74.1%+0.3pp	73.8%
Operating Margin	-6.1%-21.4pp	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%
Net Margin	-5.9%-22.6pp	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%
Return on Equity	-0.6%-5.2pp	4.6%+0.8pp	3.9%+0.6pp	3.3%-0.4pp	3.6%-0.6pp	4.2%-1.8pp	5.9%-1.0pp	6.9%
Return on Assets	-0.4%-2.1pp	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%
Current Ratio	0.86-0.2x	1.04+0.1x	0.990.0x	0.940.0x	0.90+0.1x	0.840.0x	0.840.0x	0.89
Debt-to-Equity	0.67-1.0x	1.66-0.1x	1.72-0.3x	2.010.0x	2.04-0.2x	2.29-0.2x	2.45-0.4x	2.87
FCF Margin	26.3%+11.5pp	14.8%-53.4pp	68.2%+31.3pp	36.9%+12.4pp	24.5%+1.9pp	22.6%-46.0pp	68.5%+47.3pp	21.3%

Note: The current ratio is below 1.0 (0.94), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Where Palo Alto Networks, Inc. Ranks

Frequently Asked Questions

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

Palo Alto Networks, Inc. (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 Networks, Inc.'s revenue growing?

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

Is Palo Alto Networks, Inc. profitable?

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

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

Palo Alto Networks, Inc. (PANW) had EBITDA of $1.6B in fiscal year 2025, 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 73.4% in fiscal year 2025, 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 13.5% in fiscal year 2025, 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 12.3% in fiscal year 2025, 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 14.5% for fiscal year 2025, 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 $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 Networks, Inc.'s operating cash flow?

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

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

Palo Alto Networks, Inc. (PANW) had $23.6B in total assets as of fiscal year 2025, including both current and long-term assets.

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

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

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

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

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

Palo Alto Networks, Inc. (PANW) had 669M shares outstanding as of fiscal year 2025.

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

Palo Alto Networks, Inc. (PANW) had a current ratio of 0.94 as of fiscal year 2025, 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 2.01 as of fiscal year 2025, 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 4.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

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

Palo Alto Networks, Inc. (PANW) has an Altman Z-Score of 12.55, 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 4 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 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 Networks, Inc. cover its interest payments?

Palo Alto Networks, Inc. (PANW) has an interest coverage ratio of 414.30x, 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 Networks, Inc.?

Palo Alto Networks, Inc. (PANW) scores 55 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.