Detailed financial statements for Palo Alto Networks, Inc. (PANW): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Palo Alto Networks, Inc. is a global leader in providing advanced cybersecurity solutions. The company's core product line includes both hardware and software-based firewalls. It also offers Panorama, a sophisticated security management platform designed for centralized control of these firewall deployments, whether they are physical appliances, virtual instances, or situated in public or private cloud environments.
Analysis Summary
Palo Alto Networks, Inc. reported revenue of $11.48B in the most recent fiscal year, growing at a 5-year CAGR of 22.0%.
Trailing-twelve-month margins: gross margin 70.4%, operating margin 6.1%, net margin 2.7%. Free cash flow grew at 24.3% CAGR over 5 years.
At $365.87 (closing price, October 30, 2026), PANW trades at a P/E of 831.52 and an ROE of 1.68%. Market capitalisation stands at $299.4B, placing it among large-cap names.
Balance sheet quality for PANW: current ratio of 0.9, net cash position of $571.0M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $4.11B represents 1340% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.76B | $2.27B | $2.90B | $3.41B | $4.26B | $5.50B | $6.89B | $8.03B | $9.22B | $11.48B |
| Cost of Revenue | $476.6M | $645.3M | $808.4M | $999.5M | $1.27B | $1.72B | $1.91B | $2.06B | $2.45B | $3.40B |
| Gross Profit | $1.28B | $1.63B | $2.09B | $2.41B | $2.98B | $3.78B | $4.98B | $5.97B | $6.77B | $8.08B |
| Research & Development | $347.4M | $400.7M | $539.5M | $768.1M | $1.14B | $1.42B | $1.60B | $1.81B | $1.98B | $2.55B |
| Selling, General & Admin | $1.10B | $1.33B | $1.61B | $1.82B | $2.14B | $2.55B | $2.99B | $3.48B | $3.54B | $4.83B |
| Operating Expenses | $1.44B | $1.73B | $2.15B | $2.59B | $3.29B | $3.97B | $4.60B | $5.28B | $5.53B | $7.38B |
| Operating Income | -$165.8M | -$104.2M | -$54.1M | -$179.0M | -$304.1M | -$188.8M | $387.3M | $683.9M | $1.24B | $695.0M |
| EBITDA | -$95.8M | $20.7M | $163.1M | $59.5M | -$46.6M | $95.6M | $869.0M | $1.28B | $1.94B | $536.0M |
| Interest Expense | $24.5M | $29.6M | $83.9M | $88.7M | $163.3M | $27.4M | $27.2M | $8.3M | $3.0M | 0 |
| Pre-tax Income | -$194.1M | -$130.2M | -$74.6M | -$231.8M | -$465.0M | -$207.2M | $566.3M | $988.3M | $1.60B | $536.0M |
| Income Tax | $22.5M | $17.7M | $7.3M | $35.2M | $33.9M | $59.8M | $126.6M | -$1.59B | $461.8M | $229.0M |
| Net Income | -$216.6M | -$147.9M | -$81.9M | -$267.0M | -$498.9M | -$267.0M | $439.7M | $2.58B | $1.13B | $307.0M |
| EPS | $-0.40 | $-0.27 | $-0.14 | $-0.46 | $-0.86 | $-0.45 | $0.73 | $4.04 | $1.71 | $0.46 |
| EPS (Diluted) | $-0.40 | $-0.27 | $-0.14 | $-0.46 | $-0.86 | $-0.45 | $0.64 | $3.64 | $1.60 | $0.44 |
| Shares Outstanding (Diluted) | 543.6 M | 550.2 M | 567.0 M | 581.4 M | 578.4 M | 591.0 M | 684.6 M | 708.0 M | 709.3 M | 764.0 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $2.47B | $2.59B | $3.00B | $3.41B |
| Gross Profit | $1.84B | $1.91B | $2.03B | $2.30B |
| Operating Income | $309.0M | $400.0M | -$183.0M | $169.0M |
| EBITDA | $501.0M | $640.0M | $327.0M | $72.0M |
| Net Income | $334.0M | $432.0M | -$177.0M | -$282.0M |
| EPS | $0.49 | $0.61 | $-0.29 | $-0.35 |
| EPS (Diluted) | $0.47 | $0.60 | $-0.28 | $-0.35 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $744.3M | $2.51B | $961.4M | $2.96B | $1.87B | $2.12B | $1.14B | $1.54B | $2.27B | $2.51B |
| Short-term Investments | $630.7M | $896.5M | $1.84B | $789.8M | $1.03B | $1.52B | $1.25B | $1.04B | $634.6M | $557.0M |
| Receivables | $432.1M | $467.0M | $582.4M | $1.04B | $1.24B | $2.25B | $2.85B | $3.34B | $3.68B | $4.22B |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $1.98B | $4.13B | $3.66B | $5.13B | $4.65B | $6.41B | $6.05B | $6.85B | $7.10B | $8.64B |
| Property, Plant & Equipment | $211.1M | $273.1M | $296.0M | $606.8M | $581.3M | $599.8M | $617.8M | $747.0M | $734.3M | $1.22B |
| Goodwill | $238.8M | $522.8M | $1.35B | $1.81B | $2.71B | $2.75B | $2.93B | $3.35B | $4.57B | $22.01B |
| Intangible Assets | $53.7M | $140.8M | $280.6M | $358.2M | $498.6M | $384.5M | $315.4M | $374.9M | $762.7M | $7.02B |
| Total Assets | $3.44B | $5.82B | $6.59B | $9.07B | $10.24B | $12.25B | $14.50B | $19.99B | $23.58B | $48.46B |
| Accounts Payable | $35.5M | $49.4M | $73.3M | $63.6M | $56.9M | $128.0M | $132.3M | $116.3M | $232.2M | $290.0M |
| Short-term Debt | 0 | $550.4M | 0 | 0 | $1.56B | $3.68B | $1.99B | $963.9M | 0 | 0 |
| Total Current Liabilities | $1.20B | $2.14B | $2.05B | $2.69B | $5.12B | $8.31B | $7.74B | $7.68B | $7.99B | $9.92B |
| Long-term Debt | $524.7M | $1.37B | $1.43B | $3.08B | $1.67B | 0 | 0 | 0 | 0 | $1.77B |
| Total Liabilities | $2.68B | $4.83B | $5.01B | $7.96B | $9.48B | $12.04B | $12.75B | $14.82B | $15.75B | $20.97B |
| Retained Earnings | -$836.7M | -$984.6M | -$900.9M | -$1.17B | -$1.67B | -$1.67B | -$1.23B | $1.35B | $2.48B | $2.79B |
| Total Equity | $759.6M | $988.3M | $1.59B | $1.10B | $763.6M | $210.0M | $1.75B | $5.17B | $7.82B | $27.49B |
| Total Debt | $524.7M | $1.92B | $1.43B | $3.42B | $3.54B | $3.95B | $2.27B | $1.34B | $338.2M | $2.50B |
| Net Debt | -$850.3M | -$1.48B | -$1.37B | -$327.1M | $638.3M | $318.4M | -$119.3M | -$1.23B | -$2.56B | -$571.0M |
| Working Capital | $775.0M | $1.99B | $1.61B | $2.44B | -$469.4M | -$1.89B | -$1.69B | -$833.0M | -$884.7M | -$1.28B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $3.08B | $4.16B | $2.36B | $2.51B |
| Total Assets | $23.54B | $24.98B | $46.27B | $48.46B |
| Total Liabilities | $14.87B | $15.59B | $18.60B | $20.97B |
| Total Equity | $8.66B | $9.39B | $27.67B | $27.49B |
| Total Debt | $692.0M | $372.0M | $2.07B | $2.50B |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$216.6M | -$147.9M | -$81.9M | -$267.0M | -$498.9M | -$267.0M | $439.7M | $2.58B | $1.13B | $307.0M |
| Depreciation & Amortization | $59.8M | $96.4M | $153.8M | $253.5M | $304.9M | $282.6M | $282.2M | $283.3M | $302.3M | $801.0M |
| Stock-based Compensation | $474.5M | $496.7M | $567.7M | $658.4M | $894.5M | $1.01B | $1.07B | $1.08B | $1.30B | $1.77B |
| Change in Working Capital | $502.7M | $521.4M | $227.5M | $71.8M | $348.6M | $520.8M | $550.8M | $910.3M | $922.8M | $579.0M |
| Operating Cash Flow | $868.5M | $1.04B | $1.06B | $1.04B | $1.50B | $1.98B | $2.78B | $3.26B | $3.72B | $4.55B |
| Capital Expenditure | -$163.4M | -$112.0M | -$131.2M | -$214.4M | -$116.0M | -$192.8M | -$146.3M | -$156.8M | -$246.2M | -$440.0M |
| Acquisitions | -$90.7M | -$374.1M | -$773.7M | -$583.5M | -$777.3M | -$37.0M | -$204.5M | -$610.6M | -$1.05B | -$4.66B |
| Stock Repurchased | -$411.0M | -$259.1M | -$330.0M | -$1.20B | -$1.18B | -$892.3M | -$272.7M | -$566.7M | 0 | -$1.00B |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $705.1M | $925.0M | $924.4M | $821.3M | $1.39B | $1.79B | $2.63B | $3.10B | $3.47B | $4.11B |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $1.77B | $554.0M | $871.0M | $1.36B |
| Capital Expenditure | -$84.0M | -$170.0M | -$83.0M | -$103.0M |
| Free Cash Flow | $1.69B | $384.0M | $788.0M | $1.25B |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $370.0M | $301.0M | $643.0M | $90.0M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +29.0% | +27.6% | +17.5% | +24.9% | +29.3% | +25.3% | +16.5% | +14.9% | +24.5% | |
| Net Income Growth (YoY) | +31.7% | +44.6% | -226.0% | -86.9% | +46.5% | +264.7% | +486.2% | -56.0% | -72.9% | |
| EPS Growth (YoY) | +32.5% | +46.3% | -217.2% | -87.0% | +47.7% | +262.2% | +453.4% | -57.7% | -73.1% | |
| Shares Change (YoY) | +1.2% | +3.1% | +2.5% | -0.5% | +2.2% | +15.8% | +3.4% | +0.2% | +7.7% | |
| FCF Growth (YoY) | +31.2% | -0.1% | -11.2% | +68.9% | +29.2% | +46.8% | +17.8% | +11.9% | +18.5% | |
| Gross Margin | 72.9% | 71.6% | 72.1% | 70.7% | 70.0% | 68.8% | 72.3% | 74.3% | 73.4% | 70.4% |
| Operating Margin | -9.4% | -4.6% | -1.9% | -5.3% | -7.1% | -3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| EBITDA Margin | -5.4% | 0.9% | 5.6% | 1.7% | -1.1% | 1.7% | 12.6% | 15.9% | 21.0% | 4.7% |
| Net Margin | -12.3% | -6.5% | -2.8% | -7.8% | -11.7% | -4.9% | 6.4% | 32.1% | 12.3% | 2.7% |
| FCF Margin | 40.0% | 40.7% | 31.9% | 24.1% | 32.6% | 32.6% | 38.2% | 38.6% | 37.6% | 35.8% |
| Effective Tax Rate | -11.6% | -13.6% | -9.8% | -15.2% | -7.3% | -28.9% | 22.4% | -160.8% | 28.9% | 42.7% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $1.30 | $1.68 | $1.63 | $1.41 | $2.40 | $3.03 | $3.84 | $4.38 | $4.89 | $5.38 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 543.6 M | 550.2 M | 567.0 M | 581.4 M | 578.4 M | 591.0 M | 606.4 M | 638.4 M | 662.5 M | 749.0 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 1.68% |
| Return on Invested Capital | 1.03% |
| Return on Assets | 0.63% |
| Gross Margin | 70.36% |
| Operating Margin | 6.05% |
| Net Margin | 2.67% |
Financial Health
| Debt / Equity | 0.09 |
| Current Ratio | 0.87 |
| Piotroski F-Score | 3 |
| Altman Z-Score | 7.45 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -54.90 | -122.37 | -260.41 | -92.72 | -77.34 | -188.02 | 171.21 | 40.19 | 101.52 | 721.37 |
| P/B | 15.72 | 18.39 | 13.50 | 22.51 | 50.38 | 238.12 | 43.35 | 20.05 | 14.70 | 9.04 |
| P/S | 6.78 | 8.00 | 7.38 | 7.28 | 9.04 | 9.09 | 11.00 | 12.91 | 12.47 | 21.65 |
| Gross Margin | 72.9% | 71.6% | 72.1% | 70.7% | 70.0% | 68.8% | 72.3% | 74.3% | 73.4% | 70.4% |
| Operating Margin | -9.4% | -4.6% | -1.9% | -5.3% | -7.1% | -3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| Net Margin | -12.3% | -6.5% | -2.8% | -7.8% | -11.7% | -4.9% | 6.4% | 32.1% | 12.3% | 2.7% |
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