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PANW · Nasdaq · United States · Computer Peripheral Equipment, Nec
In shortPalo Alto Networks Inc is profitable, generates cash and holds more cash than debt, with revenue growing (+24.5% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 6.1% | 37/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 2.7% | 31/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 1.7% | 9/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 1.4% | 9/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 0.87× | 6/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.06× | 100/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 1.49 | 10/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 35.8% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 13.40× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 4 of 5 | 80/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 6.1% | 88/100 |
| Operating margin volatility | 6.2% | 53/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 18.5% | 100/100 |
|---|---|---|
| EPS growth, 3-year average | -14.5% | 0/100 |
Weight in the score: 10%
Fiscal year 2026 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 5,502 | 6,893 | 8,027 | 9,221 | 11,480 |
| Cost of revenue | 1,719 | 1,910 | 2,059 | 2,451 | 3,403 |
| Gross profit | 3,783 | 4,983 | 5,968 | 6,770 | 8,077 |
| Research & development | 1,418 | 1,604 | 1,810 | 1,984 | 2,552 |
| Operating income | (189) | 387 | 684 | 1,243 | 695 |
| Interest expense | 27 | 27 | 8.3 | 3 | 0 |
| Pre-tax income | (207) | 566 | 988 | 1,596 | 536 |
| Income tax | 60 | 127 | (1,590) | 462 | 229 |
| Net income | (267) | 440 | 2,578 | 1,134 | 307 |
| Diluted EPS | −$0.90 | $0.64 | $3.64 | $1.60 | $0.40 |
| Diluted shares (millions) | 296 | 685 | 708 | 709 | 764 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of Palo Alto Networks Inc are included in the Investor plan. Try free for 7 days →
1.49 Grey zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
3/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jul 31, 2026 · Data updated Sep 10, 2026