PANW — Palo Alto Networks, Inc. $366.34

SOFTWARE · Generated 2026-08-04 21:26

Price graph

52-Week Range
139.57 – 368.80
P/E (TTM)
318.56
EPS (TTM)
1.15
Earnings Date (est.)
Sep 1, 2026
1y Target Est
336.70

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quality Scorecard Growth

C62/100
Pricing power (gross margin) 72% Gross margin 72% — wide margins, likely pricing power
Return on equity 5% ROE 5% — low returns on capital
Leverage (net debt / EBITDA) net cash Net cash — $1.0B more cash than debt
Interest coverage 654x EBIT covers interest 654x — comfortably covered
Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
Earnings growth (net income YoY) -56% Net income -56% YoY — earnings declining
Cash conversion (CFO/NI) 328% Operating cash ÷ net income 328% — earnings convert to cash
Operating margin trend eroding Operating margin eroding
Revenue growth 31% Revenue +31% — strong demand growth
🟡 Growth trajectory mild deceleration YoY +15% vs +21% prior 2-yr avg — mild deceleration
Dilution control +24.2%/yr Shares +24.2% YoY — heavy dilution (stock-based comp)
Rule of 40 69 growth 31% + FCF margin 38% = 69 — healthy growth + profitability

Growth-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

59/100
Quality ×40%62
Trajectory ×30%71
Valuation ×30%42

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$78.38$402.97
Price $366.34DCF $87.09 (-76%)Analyst $336.70 (-8%)MarketGist fair $286.78 (-22%)

DCF: 15% start growth → 2.5%, 9.0% discount (band $68.73–$113.05). Analyst: 50 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▼ -56.0% YoY
Sales
▲ +14.9% YoY
Shares Outstanding
▲ +0.2% YoY

Company Overview

Basic Information

Company Name: Palo Alto Networks, Inc.
Symbol: PANW
Exchange: NMS
Sector: Technology
Industry: Software - Infrastructure

Company Details

Country: United States
City: Santa Clara
Employees: 21,491
Market Cap: $298.57B

Business Description

Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

Key Metrics

Price & Valuation

Current Price
$366.34
Market Cap
$298.57B
P/E Ratio
318.56
Forward P/E
88.81
PEG Ratio
3.68
Price to Book
10.76

Profitability

Profit Margin: 7.95%
Operating Margin: -2.46%
Gross Margin: 71.96%
Return on Equity (ROE): 4.83%
Return on Assets (ROA): 1.77%
Revenue Growth: 31.10%

Financial Health

Current Ratio: 0.86
Quick Ratio: 0.73
Debt to Equity: 7.70
Total Debt: $2.13B
Total Cash: $3.11B
Beta: 0.89

Trading & Analyst Info

52-Week Range

52-Week High: $368.80
52-Week Low: $139.57
50-Day Average: $305.27
200-Day Average: $214.31

Analyst Recommendations

Recommendation: BUY
Target Mean Price: $336.70
Target High: $433.00
Target Low: $162.34

Quarterly Verdict

🟡 52/100

Hold / watch

Quality grade C; 2 improving / 4 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 72% — wide margins, likely pricing power
➖ Return on equity: ROE 5% — low returns on capital
➕ Leverage (net debt / EBITDA): Net cash — $1.0B more cash than debt
➕ Interest coverage: EBIT covers interest 654x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➖ Earnings growth (net income YoY): Net income -56% YoY — earnings declining
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 328% — earnings convert to cash
➖ Operating margin trend: Operating margin eroding
➕ Revenue growth: Revenue +31% — strong demand growth
➖ Dilution control: Shares +24.2% YoY — heavy dilution (stock-based comp)
➕ Rule of 40: growth 31% + FCF margin 38% = 69 — healthy growth + profitability
➕ Revenue +31.1% YoY
➖ Net income -167.6% YoY
➖ Operating margin -15.7 pts YoY
➕ Free cash flow +40.7% YoY
➖ Debt +184.1% YoY
➖ Shares outstanding +22.1% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-07-312024-07-312023-07-312022-07-31
Tax Effect Of Unusual Items$-9.48M$42.00K$-1.77M$378.00K
Tax Rate For Calcs$0.29$0.21$0.22$0.21
Normalized EBITDA$1.97B$1.28B$876.90M$93.80M
Total Unusual Items$-32.80M$200.00K$-7.90M$1.80M
Total Unusual Items Excluding Goodwill$-32.80M$200.00K$-7.90M$1.80M
Net Income From Continuing Operation Net Minority Interest$1.13B$2.58B$439.70M$-267.00M
Reconciled Depreciation$343.40M$283.30M$282.20M$282.60M
Reconciled Cost Of Revenue$2.45B$2.06B$1.91B$1.72B
EBITDA$1.94B$1.28B$869.00M$95.60M
EBIT$1.60B$993.10M$586.80M$-187.00M
Net Interest Income$360.50M$309.60M$197.20M$-11.80M
Interest Expense$1.90M$4.80M$20.50M$20.20M
Interest Income$363.50M$317.90M$224.40M$15.60M
Normalized Income$1.16B$2.58B$445.83M$-268.42M
Net Income From Continuing And Discontinued Operation$1.13B$2.58B$439.70M$-267.00M

Showing 15 of 47 rows

Balance Sheet (Annual)

Item2025-07-312024-07-312023-07-312022-07-31
Ordinary Shares Number$667.90M$650.20M$616.60M$597.60M
Share Issued$667.90M$650.20M$616.60M$597.60M
Net DebtN/AN/A$856.20M$1.56B
Total Debt$338.20M$1.34B$2.27B$3.95B
Tangible Book Value$2.50B$1.44B$-1.49B$-2.92B
Invested Capital$7.82B$6.13B$3.74B$3.89B
Working Capital$-465.20M$-833.00M$-1.69B$-1.89B
Net Tangible Assets$2.50B$1.44B$-1.49B$-2.92B
Capital Lease Obligations$338.20M$380.50M$279.20M$276.10M
Common Stock Equity$7.82B$5.17B$1.75B$210.00M
Total Capitalization$7.82B$5.17B$1.75B$210.00M
Total Equity Gross Minority Interest$7.82B$5.17B$1.75B$210.00M
Stockholders Equity$7.82B$5.17B$1.75B$210.00M
Gains Losses Not Affecting Retained Earnings$48.40M$-1.60M$-43.20M$-55.60M
Other Equity Adjustments$48.40M$-1.60M$-43.20M$-55.60M

Showing 15 of 72 rows

Cash Flow Statement (Annual)

Item2025-07-312024-07-312023-07-312022-07-31
Free Cash Flow$3.47B$3.10B$2.63B$1.79B
Repurchase Of Capital Stock$0.00$-566.70M$-272.70M$-892.30M
Repayment Of Debt$-965.60M$-1.03B$-1.69B$-600.00K
Issuance Of DebtN/AN/AN/A$0.00
Capital Expenditure$-246.20M$-156.80M$-146.30M$-192.80M
Interest Paid Supplemental Data$1.70M$5.60M$20.20M$20.20M
Income Tax Paid Supplemental Data$505.50M$342.30M$147.10M$34.60M
End Cash Position$2.28B$1.55B$1.14B$2.12B
Beginning Cash Position$1.55B$1.14B$2.12B$1.88B
Changes In Cash$732.40M$404.60M$-982.60M$244.70M
Financing Cash Flow$-778.90M$-1.34B$-1.73B$-806.60M
Cash Flow From Continuing Financing Activities$-778.90M$-1.34B$-1.73B$-806.60M
Net Other Financing Charges$-183.80M$-26.60M$-20.40M$-50.30M
Proceeds From Stock Option Exercised$370.50M$283.90M$258.80M$136.60M
Net Common Stock Issuance$0.00$-566.70M$-272.70M$-892.30M

Showing 15 of 52 rows

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