A Business at a Glance
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Palo Alto Networks Inc
PANW
$229.5B
Mkt Cap
$323.79
-0.57%
Palo Alto Networks Inc (PANW) has a current P/E ratio of 179.9, compared to its historical median P/E of 44.9. The stock is currently considered Expensive based on its historical valuation range.
Palo Alto Networks Inc (PANW) has a 5-year average return on invested capital (ROIC) of 14.2%. This indicates solid capital allocation.
Palo Alto Networks Inc (PANW) has a market capitalization of $263.2B. It is classified as a mega-cap stock.
Palo Alto Networks Inc (PANW) does not currently pay a regular dividend.
Based on historical P/E analysis, Palo Alto Networks Inc (PANW) appears expensive. The current P/E of 179.9 is 301% above its historical median of 44.9. The estimated fair value CAGR (P/E method) is 93.3%.
Palo Alto Networks Inc (PANW) operates in the Computer Peripheral Equipment, Nec industry, within the Technology sector.
Palo Alto Networks Inc (PANW) reported annual revenue of $9.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Palo Alto Networks is a global cybersecurity provider offering integrated platforms designed to secure enterprise users, networks, clouds, and endpoints through AI-powered capabilities and automation. The company operates across three primary segments: Network Security, which delivers zero-trust solutions including SASE (Prisma Access and Prisma SD-WAN), next-generation firewalls in hardware and software form factors, and cloud-delivered security services such as Advanced Threat Prevention, Advanced WildFire, and Advanced URL Filtering; Security Operations, which consolidates SIEM, endpoint security, cloud detection and response, and attack surface management on the Cortex platform, alongside cloud-native application protection through Cortex Cloud; and Threat Intelligence and Advisory Services through Unit 42, offering threat research, incident response, consulting, and managed detection and response. The company's business model is subscription-based, with customers committing to multi-year contracts and expanding their platform commitments over time through a "platformization" strategy that consolidates disparate point products into tightly integrated architectures. Palo Alto Networks serves enterprises, organizations, service providers, and government entities globally, with network security representing approximately 70% of total revenue, and the company has recently expanded its platform through acquisitions of CyberArk (identity and access management) and Chronosphere (observability), positioning itself to address the emerging security challenges posed by AI infrastructure and agentic systems.
【AI-driven security acceleration】 Management anticipates that artificial intelligence will serve as a structural catalyst for the cybersecurity industry, with frontier AI systems expected to evolve into sophisticated hacking entities within a three-to-six-month window, and agentic AI reaching unprecedented levels of autonomous execution within years. The company expects continued momentum in network security, particularly in software firewalls protecting AI data centers, and anticipates that enterprise adoption of AI will drive increased traffic inspection requirements and deeper platform commitments from customers. Management is confident in surpassing 4,000 platformizations by fiscal 2030 and achieving the $20 billion NGS ARR target, supported by strong Q3 organic bookings growth, early progress on CyberArk and Chronosphere integration, and a robust Q4 pipeline. The company expects to reach its 40% free cash flow margin target in fiscal 2028, with CyberArk synergies materializing three to six months ahead of the original timeline, and anticipates that most Prisma customers will migrate to Cortex Cloud by the end of the fiscal year.
| Metric | Target | Period |
|---|---|---|
| NGS ARR | $8.9 billion–$8.95 billion | Q4 FY2026 |
| RPO | $20.9 billion–$21 billion | Q4 FY2026 |
| Revenue | $3.345 billion–$3.355 billion | Q4 FY2026 |
| NGS ARR | $8.9 billion–$8.95 billion | FY2026 |
| RPO | $20.9 billion–$21 billion | FY2026 |
| Revenue | $11.415 billion–$11.425 billion | FY2026 |
| Operating margin | 28.9%–29.2% | FY2026 |
| Free cash flow margin | 40%+ | FY2028 |
| NGS ARR | $20 billion | FY2030 |
NGS ARR (Q4 FY2026): “For the fourth quarter 2026, we expect NGS ARR of $8.9 billion-$8.95 billion, or 59%-60% growth.”
RPO (Q4 FY2026): “We expect RPO of $20.9 billion-$21 billion, or 32%-33% growth.”
“We expect revenue of $3.345 billion-$3.355 billion, or 32% growth.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 10.6B | 9.2B | 8.0B | 6.9B | 5.5B | 4.3B |
| Net Income | 843M | 1.1B | 2.6B | 440M | -267M | -499M |
| EPS | $1.26 | $1.60 | $1.82 | $0.71 | $-0.15 | $-0.85 |
| Free Cash Flow | 3.8B | 3.5B | 3.1B | 2.6B | 1.8B | 1.4B |
| ROIC | 2.4% | 20.6% | 57.9% | 11.8% | -6.9% | -12.4% |
| Gross Margin | 71.9% | 73.4% | 74.3% | 72.3% | 68.8% | 70.0% |
| Debt/Equity | 0.05 | 0.00 | 0.19 | 2.28 | 35.02 | 7.54 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.0B | 1.2B | 684M | 387M | -189M | -304M |
| Operating Margin | 9.6% | 13.5% | 8.5% | 5.6% | -3.4% | -7.1% |
| ROE | 3.0% | 17.5% | 74.5% | 44.9% | -63.2% | -57.5% |
| Shares Outstanding | 813M | 709M | 1,416M | 617M | 1,780M | 584M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 598M | 928M | 1.4B | 1.8B | 2.3B | 2.9B | 3.4B | 4.3B | 5.5B | 6.9B | 8.0B | 9.2B | 10.6B |
| Gross Margin | 73.3% | 72.9% | 73.2% | 72.6% | 71.6% | 72.1% | 70.7% | 70.0% | 68.8% | 72.3% | 74.3% | 73.4% | 71.9% |
| R&D | 105M | 186M | 284M | 347M | 401M | 540M | 768M | 1.1B | 1.4B | 1.6B | 1.8B | 2.0B | 2.3B |
| SG&A | 73M | 102M | 138M | 198M | 258M | 262M | 300M | 391M | 405M | 448M | 681M | 443M | 700M |
| EBIT | -215M | -100M | -157M | -166M | -104M | -54M | -179M | -304M | -189M | 387M | 684M | 1.2B | 1.0B |
| Op. Margin | -36.0% | -10.8% | -11.4% | -9.4% | -4.6% | -1.9% | -5.3% | -7.1% | -3.4% | 5.6% | 8.5% | 13.5% | 9.6% |
| Net Income | -227M | -131M | -193M | -203M | -122M | -82M | -267M | -499M | -267M | 440M | 2.6B | 1.1B | 843M |
| Net Margin | -37.9% | -14.1% | -14.0% | -11.5% | -5.4% | -2.8% | -7.8% | -11.7% | -4.9% | 6.4% | 32.1% | 12.3% | 7.9% |
| Non-Recurring | 0 | 0 | 0 | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | -37.5% | -13.7% | -16.3% | -15.2% | -5.6% | -2.7% | -7.4% | -12.4% | -6.9% | 11.8% | 57.9% | 20.6% | 2.4% |
| ROE | -61.1% | -27.5% | -27.9% | -24.5% | -12.7% | -6.0% | -19.9% | -57.5% | -63.2% | 44.9% | 74.5% | 17.5% | 3.0% |
| ROA | -21.9% | -7.6% | -8.0% | -6.4% | -2.6% | -1.3% | -3.4% | -5.2% | -2.4% | 3.3% | 14.9% | 5.2% | 1.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 88M | 353M | 659M | 869M | 1.0B | 1.1B | 1.0B | 1.5B | 2.0B | 2.8B | 3.3B | 3.7B | 4.2B |
| Free Cash Flow | 52M | 319M | 586M | 705M | 926M | 924M | 821M | 1.4B | 1.8B | 2.6B | 3.1B | 3.5B | 3.8B |
| Owner Earnings | -31M | 103M | 223M | 335M | 445M | 334M | 171M | 348M | 691M | 1.4B | 1.9B | 2.1B | 2.0B |
| CapEx | 36M | 34M | 73M | 163M | 112M | 131M | 214M | 116M | 193M | 146M | 157M | 246M | 423M |
| Maint. CapEx | 19M | 29M | 43M | 60M | 96M | 154M | 206M | 260M | 283M | 282M | 283M | 343M | 598M |
| Growth CapEx | 17M | 4.9M | 30M | 104M | 16M | 0 | 8.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 19M | 29M | 43M | 60M | 96M | 154M | 206M | 260M | 283M | 282M | 283M | 343M | 598M |
| CapEx/OCF | 40.8% | 9.6% | 11.0% | 18.8% | 10.8% | 12.4% | 20.7% | 7.7% | 9.7% | 5.3% | 4.8% | 6.6% | 10.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | 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 |
| Share Buybacks | 132K | 0 | 0 | 411M | 259M | 330M | 1.2B | 1.2B | 892M | 273M | 567M | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | 3.4% | 1.4% | 1.5% | 5.1% | 3.1% | 1.8% | 0.3% | 0.5% | N/A | 0.0% |
| Stock-Based Comp | 100M | 221M | 393M | 475M | 497M | 568M | 658M | 895M | 1.0B | 1.1B | 1.1B | 1.3B | 1.7B |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 3.7M | 0 | 200K | 600K | 1.7B | 1.0B | 966M | 966M |
| Balance Sheet | |||||||||||||
| Net Debt | -306M | 185M | -785M | -850M | -933M | -1.4B | -664M | 1.9B | 3.7B | 1.6B | -1.6B | -2.9B | -1.6B |
| Cash & Equiv. | 654M | 376M | 734M | 744M | 2.5B | 961M | 3.0B | 1.9B | 2.1B | 1.1B | 1.5B | 2.3B | 3.1B |
| Long-Term Debt | 467M | 487M | 500M | 525M | 1.9B | 1.4B | 3.1B | 3.2B | 3.7B | 2.0B | N/A | N/A | 1.2B |
| Debt/Equity | 1.00 | 2.00 | 0.56 | 0.69 | 2.13 | 0.90 | 2.80 | 7.54 | 35.02 | 2.28 | 0.19 | 0.00 | 0.05 |
| Interest Coverage | -113.3 | -4.5 | -6.7 | -6.8 | -3.5 | -0.6 | -2.0 | -1.9 | -6.9 | 14.2 | 82.4 | 29.3 | 25.8 |
| Equity | 469M | 488M | 895M | 760M | 1.2B | 1.6B | 1.1B | 635M | 210M | 1.7B | 5.2B | 7.8B | 27.7B |
| Total Assets | 1.5B | 2.0B | 2.9B | 3.4B | 5.9B | 6.6B | 9.1B | 10.2B | 12.3B | 14.5B | 20.0B | 23.6B | 46.3B |
| Total Liabilities | 1.0B | 1.5B | 2.0B | 2.7B | 4.8B | 5.0B | 8.0B | 9.5B | 12.0B | 12.8B | 14.8B | 15.8B | 18.6B |
| Intangibles | 48M | 53M | 44M | 54M | 141M | 281M | 358M | 499M | 385M | 315M | 375M | 763M | 7.3B |
| Retained Earnings | -336M | -501M | -622M | -837M | -791M | -901M | -1.2B | -1.7B | -1.7B | -1.2B | 1.4B | 2.5B | 3.1B |
| Working Capital | 610M | 42M | 927M | 775M | 2.0B | 1.6B | 2.4B | -469M | -1.9B | -1.7B | -833M | -465M | -1.3B |
| Current Assets | 958M | 1.1B | 1.8B | 2.0B | 4.1B | 3.7B | 5.1B | 4.6B | 6.4B | 6.0B | 6.8B | 7.5B | 7.7B |
| Current Liabilities | 348M | 1.0B | 847M | 1.2B | 2.1B | 2.1B | 2.7B | 5.1B | 8.3B | 7.7B | 7.7B | 8.0B | 9.0B |
| Per Share Data | |||||||||||||
| EPS | -0.51 | -0.27 | -0.37 | -0.37 | -0.22 | -0.15 | -0.46 | -0.85 | -0.15 | 0.71 | 1.82 | 1.60 | 1.26 |
| Owner EPS | -0.07 | 0.21 | 0.43 | 0.62 | 0.81 | 0.59 | 0.29 | 0.60 | 0.39 | 2.30 | 1.34 | 2.93 | 2.40 |
| Book Value | 1.05 | 1.00 | 1.71 | 1.40 | 2.10 | 2.81 | 1.90 | 1.09 | 0.12 | 2.83 | 3.65 | 11.04 | 34.03 |
| Cash Flow/Share | 0.20 | 0.72 | 1.26 | 1.60 | 1.88 | 1.87 | 1.78 | 2.57 | 1.12 | 4.50 | 2.30 | 5.24 | 1.77 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 445.6M | 489.3M | 523.2M | 543.8M | 551.3M | 564.8M | 580.4M | 584.4M | 1.8B | 617.2M | 1.4B | 708.7M | 813.0M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 194.1 | 44.9 | 127.8 | 257.1 |
| P/FCF | 116.6 | 47.8 | 19.7 | 17.2 | 20.6 | 23.1 | 28.8 | 28.1 | 81.5 | 29.1 | 74.6 | 41.8 | 69.4 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 229.6 | 168.2 | 114.3 | 256.5 |
| Price/Book | 13.0 | 31.3 | 12.9 | 16.0 | 16.5 | 13.5 | 21.5 | 60.6 | 231.8 | 48.8 | 22.4 | 18.5 | 9.5 |
| Price/Sales | 17.4 | 24.4 | 19.1 | 11.6 | 6.8 | 6.9 | 6.2 | 7.3 | 9.2 | 9.1 | 12.6 | 14.2 | 24.8 |
| FCF Yield | 0.9% | 2.1% | 5.1% | 5.8% | 4.8% | 4.3% | 3.5% | 3.6% | 3.7% | 3.1% | 2.7% | 2.4% | 1.4% |
| Market Cap | 6.1B | 15.3B | 11.6B | 12.1B | 19.1B | 21.4B | 23.7B | 38.5B | 48.7B | 85.3B | 115.7B | 144.9B | 263.2B |
| Avg. Price | 10.10 | 21.70 | 25.83 | 22.47 | 28.00 | 35.57 | 36.16 | 53.44 | 85.00 | 91.79 | 143.04 | 184.22 | 323.79 |
| Year-End Price | 13.69 | 31.14 | 22.11 | 22.28 | 34.66 | 37.84 | 40.80 | 66.58 | 82.04 | 124.22 | 163.40 | 204.50 | 323.79 |
Palo Alto Networks Inc passes 5 of 9 quality checks, suggesting mixed fundamentals.
Palo Alto Networks Inc trades at 179.9x trailing earnings, compared to its 15-year median P/E of 44.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 74.1x vs a median of 28.4x. The company's 5-year average ROIC is 14.2% with a gross margin of 71.8%. At current prices, the estimated annualized return to fair value is +22.5%.
Palo Alto Networks Inc (PANW) has a net profit margin of 12.3%. This is a healthy margin.
Palo Alto Networks Inc (PANW) generated $3.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Palo Alto Networks Inc (PANW) has a debt-to-equity ratio of 0.00. This indicates a conservatively financed balance sheet.
Palo Alto Networks Inc (PANW) reported earnings per share (EPS) of $1.60 in its most recent fiscal year.
Palo Alto Networks Inc (PANW) has a return on equity (ROE) of 17.5%. This indicates the company generates strong returns for shareholders.
Palo Alto Networks Inc (PANW) has a 5-year average gross margin of 71.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for Palo Alto Networks Inc (PANW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Palo Alto Networks Inc (PANW) has a book value per share of $11.04, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management anticipates that artificial intelligence will serve as a structural catalyst for the cybersecurity industry, with frontier AI systems expected to evolve into sophisticated hacking entities within a three-to-six-month window, and agentic AI reaching unprecedented levels of autonomous execution within years. The company expects continued momentum in network security, particularly in software firewalls protecting AI data centers, and anticipates that enterprise adoption of AI will drive increased traffic inspection requirements and deeper platform commitments from customers. Management is confident in surpassing 4,000 platformizations by fiscal 2030 and achieving the $20 billion NGS ARR target, supported by strong Q3 organic bookings growth, early progress on CyberArk and Chronosphere integration, and a robust Q4 pipeline. The company expects to reach its 40% free cash flow margin target in fiscal 2028, with CyberArk synergies materializing three to six months ahead of the original timeline, and anticipates that most Prisma customers will migrate to Cortex Cloud by the end of the fiscal year.
Based on recent SEC filings and earnings calls, Palo Alto Networks Inc (PANW) has provided the following forward guidance: NGS ARR: $8.9 billion–$8.95 billion (Q4 FY2026); RPO: $20.9 billion–$21 billion (Q4 FY2026); Revenue: $3.345 billion–$3.355 billion (Q4 FY2026); NGS ARR: $8.9 billion–$8.95 billion (FY2026); RPO: $20.9 billion–$21 billion (FY2026), plus 4 additional metrics.
NGS ARR (FY2026): “For the fiscal year 2026, we expect NGS ARR of $8.9 billion-$8.95 billion, or 59%-60% growth.”
RPO (FY2026): “We expect RPO of $20.9 billion-$21 billion, or 32%-33% growth.”
Revenue (FY2026): “We expect revenue of $11.415 billion-$11.425 billion, or 24% growth.”
Operating margin (FY2026): “Operating margins to be in the range of 28.9%-29.2%.”
Free cash flow margin (FY2028): “we're targeting adjusted free cash flow of 40% + for the combined company in fiscal 2028”