Palo Alto Networks, Inc. (PANW) financials
NASDAQ · Technology · Software - Infrastructure · 21,921 employees · CEO Nikesh Arora
- Price
- $365.87 -3.86%
- Market cap
- $299B
- Enterprise value
- $299B
- Last report
- Q4 '26 filed 2026-09-10
- Next report
- 2026-11-18 EPS est. $0.97
Revenue (TTM)$11.5B+24.5% vs a year agoLast 4 quarters; bars = each quarter
Operating margin (TTM)6.1%-7.4 pp vs a year agoOperating income $695M
Net income (TTM)$307M-72.9% vs a year agoAfter tax, incl. non-operating gains
Free cash flow (TTM)$4.11B+18.5% vs a year agoCapex $440M
Diluted EPS (TTM)$0.44-72.5% vs a year agoSum of the last 4 quarters
Net cash$571M-77.1% vs a year agoCash + short-term investments - debt
Valuation & key figures
- Market cap
- $299B EV $299B
- Revenue
- $11.5B Trailing 12 months
- Revenue growth
- +23% FY2027 consensus
- Profit margin
- 2.7% Net income / revenue, TTM
- P/E
- 795.4× Forward 87.4× (FY2027)
- P/S
- 26.1× Price / sales, TTM
- EV / EBITDA
- 194.4× TTM
- Free cash flow
- $4.11B Trailing 12 months
- Net income
- $307M Trailing 12 months
- Revenue estimate
- $14.2B FY2027 consensus
- Earnings
- 2026-11-18 Revenue est. $3.31B
- Dividend
- – No dividend
Key takeaways
Computed from the reported numbers - every statement carries the figure it rests on.
- Last report (2026-09-01): revenue beat by 1.7%, EPS beat by 4.3%Revenue $3.41B vs $3.35B expected (+1.7%); EPS $1.02 vs $0.98 (+4.3%).
- Revenue growth accelerating: 34.4% year on yearQ4 '26 revenue $3.41B, against an average of 19.4% over the four quarters before.
- Operating margin 6.1% (TTM), -7.4 pp on a year agoOperating income grew -44.1% while revenue grew 24.5%.
- 29.7% of pre-tax profit is eaten by non-operating lossesPre-tax income $536M vs operating income $695M (TTM). Losses on equity stakes and other one-off items cut net income and EPS - operating income is the cleaner measure of the business.
- Capex 3.8% of revenue (a year ago 2.7%)$440M invested in the last 4 quarters (+78.7% on a year earlier). Free cash flow $4.11B = 1,339.7% of net income.
- Returned $1B to shareholders = 24.3% of free cash flowBuybacks $1B (a year earlier $0), dividends $0, stock-based pay $1.4B (TTM).
- Diluted share count up 7.8% in a year764M diluted shares in Q4 '26, 709M a year earlier.
- Net cash $571MCash + short-term investments $3.07B, debt incl. leases $2.5B; a year ago net cash $2.5B.
Last quarter: Q4 '26
Quarter ended 2026-07-31. Compared with the same quarter a year earlier and with the analyst consensus before the report.
Quarter vs a year ago
| Q4 '26 | Year ago | Change | |
|---|---|---|---|
| Revenue | $3.41B | $2.54B | +34.4% |
| Gross margin | 67.6% | 73.2% | -5.7 pp |
| Operating income | $169M | $497M | -66.0% |
| Operating margin | 5.0% | 19.6% | -14.6 pp |
| Net income | -$282M | $254M | -211.1% |
| Diluted EPS | -$0.35 | $0.36 | -197.2% |
| Operating cash flow | $1.36B | $1.02B | +32.9% |
| Capex | $103M | $86.3M | +19.4% |
| Free cash flow | $1.25B | $935M | +34.2% |
| R&D | $779M | $504M | +54.7% |
| Stock-based compensation | $90M | $354M | -74.6% |
Reported vs consensus
2026-09-01| Actual | Consensus | vs consensus | |
|---|---|---|---|
| Revenue | $3.41B | $3.35B | +1.7% |
| EPS (as estimated) | $1.02 | $0.98 | +4.3% |
From the report of 2026-09-01 for Q4 '26: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.
EPS vs consensus
last 8 reportsRevenue
Where the money comes from - by business line and by region, quarter by quarter.
Revenue, operating income and growth
quarterlyRevenue by business line
stacked, quarterly| Segment | Q4 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| Subscription | $3.2B | +143.6% | 54.4% | – | – | |
| Support | $1.51B | +133.1% | 25.6% | – | – | |
| Product | $1.17B | +104.2% | 19.9% | – | – |
Revenue by region
share of total| Segment | Q4 '26 | y/y | Share | TTM | TTM y/y | 12 quarters |
|---|---|---|---|---|---|---|
| Americas | $3.95B | +128.1% | 67.1% | – | – | |
| EMEA | $1.24B | +139.8% | 21.0% | – | – | |
| Asia Pacific | $700M | +141.5% | 11.9% | – | – |
Margins & cost structure
How much of each unit of revenue is left at each level - and where the costs go.
Margins
quarterlyCosts as % of revenue
quarterlyCash flow & capital allocation
Cash generated, what it is spent on, and what reaches shareholders.
Operating cash flow, capex, free cash flow
quarterlyUses of cash vs operating cash flow
fiscal yearsLast 4 quarters
cash flow statement- Operating cash flow
- $4.55B
- Capex
- -$440M
- Buybacks
- -$1B
- Dividends
- $0
- Acquisitions
- -$4.66B
- Net debt issued
- -$150M
- Stock-based compensation
- $1.4B
- Free cash flow
- $4.11B
- Returned to shareholders / FCF
- 24.3%
Share count and EPS
quarterly, dilutedBalance sheet
Liquidity, investments and debt at each quarter end.
Cash, investments and debt
quarter endsValuation & returns
Today's multiples against the company's own last five fiscal years; analyst targets and ratings.
Multiples and returns
TTM vs 5 fiscal years| Now | 5y average | Where today sits in the 5-year range | |
|---|---|---|---|
| P/E (TTM) | 795.4× | 258.6× 4 of 5 years | 40.2× – 721.4× |
| EV / EBITDA | 194.4× | 189.8× | 58.3× – 542.2× |
| EV / Sales | 26.1× | 13.5× | 9.4× – 21.6× |
| Price / FCF | 72.8× | 36.7× | 27.9× – 60.4× |
| Price / Book | 10.0× | 65.1× | 9.0× – 238.1× |
| FCF yield | 1.4% | 2.9% | 1.7% – 3.6% |
| Return on invested capital | 1.0% | 2.6% | -2.5% – 5.7% |
| Return on equity | 1.7% | -7.3% | -127.1% – 49.9% |
Analysts
Consensus target $400.05 (+9.3%)
range $290.00 – $525.00 · rating Buy
Strong buy0
Buy64
Hold23
Sell2
Strong sell0
Outlook
Analyst consensus for the coming fiscal years and what it implies at today's price.
Consensus estimates
| Fiscal year | Revenue | Growth | EPS | Growth | P/E at today's price | Analysts (EPS) |
|---|---|---|---|---|---|---|
| FY2027 | $14.2B | +23.4% | $4.18 | +851.0% | 87.4× | 31 |
| FY2028 | $16.2B | +14.3% | $4.86 | +16.1% | 75.3× | 18 |
| FY2029 | $18.4B | +13.6% | $5.63 | +15.9% | 65.0× | 10 |
| FY2030 | $20.6B | +11.8% | $6.22 | +10.5% | 58.8× | 4 |
| FY2031 | $23.3B | +13.1% | $0.00 | -100.0% | – | 5 |
Financial statements
Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.
Every reported line
All 271 figures Palo Alto Networks, Inc. tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).
| Line (SEC label) | Latest quarter | Year ago | y/y | Latest FY | Prior FY | y/y |
|---|---|---|---|---|---|---|
| $8M | $0 | – | -$1M | $0 | – | |
| – | – | – | -$23M | – | – | |
| – | – | – | -4.1% | – | – | |
| – | – | – | -$195M | – | – | |
| – | – | – | $40M | – | – | |
| Accounts Payable, Current | $290M | $232M | +25.0% | $290M | $232M | +25.0% |
| Accounts Receivable, after Allowance for Credit Loss, Current | $3.63B | $2.97B | +22.4% | $3.63B | $2.97B | +22.4% |
| Accounts Receivable, Allowance for Credit Loss, Current | $4M | $10M | -60.0% | $4M | $10M | -60.0% |
| Accretion (Amortization) of Discounts and Premiums, Investments | $1M | $6M | -83.3% | $54M | $41M | +31.7% |
| Accrued Liabilities, Current | $838M | $846M | -0.9% | $838M | $846M | -0.9% |
| Accrued Liabilities, Fair Value Disclosure | $145M | $282M | -48.6% | $145M | $282M | -48.6% |
| Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $747M | $639M | +16.9% | $747M | $639M | +16.9% |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | -$71M | $48M | -247.9% | -$71M | $48M | -247.9% |
| Amortization of Debt Issuance Costs | – | – | – | $1.1M2025-07-31 | $3.5M | -68.6% |
| Amortization of Debt Issuance Costs and Discounts | $0 | $0 | – | $0 | $1M | -100.0% |
| Amortization of Intangible Assets | $281M | $37M | +659.5% | $640M | $166M | +285.5% |
| APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $472M | $360M | +31.1% | $1.79B | $1.31B | +36.0% |
| Asset Impairment Charges | – | – | – | $0 | $0 | – |
| Assets | $48.5B | $23.6B | +105.5% | $48.5B | $23.6B | +105.5% |
| Assets, Current | $8.64B | $7.52B | +14.9% | $8.64B | $7.52B | +14.9% |
| Assets, Fair Value Disclosure | $7.04B | $7.62B | -7.7% | $7.04B | $7.62B | -7.7% |
| Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $0 | $27M | -100.0% | $18.9B | $27M | +69,759.3% |
| Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $3M | -$155M | +101.9% | -$117M | -$135M | +13.3% |
| Business Combination, Contingent Consideration, Liability, Current | $116M | $276M | -58.0% | $116M | $276M | -58.0% |
| Business Combination, Contingent Consideration, Liability, Noncurrent | $90M | $238M | -62.2% | $90M | $238M | -62.2% |
| Capitalized Contract Cost, Amortization | $180M | $137M | +31.4% | $590M | $481M | +22.7% |
| Capitalized Contract Cost, Net, Current | $544M | $419M | +29.8% | $544M | $419M | +29.8% |
| Capitalized Contract Cost, Net, Noncurrent | $667M | $586M | +13.8% | $667M | $586M | +13.8% |
| Cash and Cash Equivalents, at Carrying Value | $2.51B | $2.27B | +10.8% | $2.51B | $2.27B | +10.8% |
| Cash and Cash Equivalents, Fair Value Disclosure | $1.64B | $1.38B | +19.1% | $1.64B | $1.38B | +19.1% |
| Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | -$21M2026-04-30 | $37.1M | -156.6% | $38.4M2025-07-31 | -$7.9M | +586.1% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $2.52B | $2.28B | +10.7% | $2.52B | $2.28B | +10.7% |
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $149M | -$116M | +228.4% | $244M | $732M | -66.7% |
| Common Stock, Par or Stated Value Per Share | $0.00 | $0.00 | 0.0% | $0.00 | $0.00 | 0.0% |
| Common Stock, Shares Authorized | 2B | 2B | 0.0% | 2B | 2B | 0.0% |
| Common Stock, Shares, Issued | 815M | 668M | +22.0% | 815M | 668M | +22.0% |
| Common Stock, Shares, Outstanding | 815M | 668M | +22.0% | 815M | 668M | +22.0% |
| Common Stocks, Including Additional Paid in Capital | $24.8B | $5.29B | +368.1% | $24.8B | $5.29B | +368.1% |
| Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -$340M | $254M | -233.9% | $188M | $1.18B | -84.1% |
| Contract with Customer, Liability, Current | $7.75B | $6.3B | +22.9% | $7.75B | $6.3B | +22.9% |
| Contract with Customer, Liability, Noncurrent | $7.01B | $6.45B | +8.7% | $7.01B | $6.45B | +8.7% |
| Contract with Customer, Liability, Revenue Recognized | $1.3B | $1.1B | +18.2% | $6.2B | $5.5B | +12.7% |
| Convertible Debt, Current | $160M2026-04-30 | $383M | -58.2% | $02025-07-31 | $964M | -100.0% |
| Convertible Debt, Noncurrent | $1.77B | $0 | – | $1.77B | $0 | – |
| Cost of Goods and Services Sold | $1.11B | $679M | +62.9% | $3.4B | $2.45B | +38.8% |
| Current Federal Tax Expense (Benefit) | – | – | – | $95M | $517M | -81.6% |
| Current Foreign Tax Expense (Benefit) | – | – | – | $132M | $186M | -29.0% |
| Current State and Local Tax Expense (Benefit) | – | – | – | $53M | $108M | -50.9% |
| Debt Securities, Available-for-Sale, Fair Value, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10 | $143M | $296M | -51.6% | $143M | $296M | -51.6% |
| Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost | $159M | $183M | -13.2% | $159M | $183M | -13.2% |
| Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value | $158M | $186M | -14.9% | $158M | $186M | -14.9% |
| Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Amortized Cost | $143M | $293M | -51.2% | $143M | $293M | -51.2% |
| Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost | $514M | $797M | -35.5% | $514M | $797M | -35.5% |
| Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | $515M | $799M | -35.5% | $515M | $799M | -35.5% |
| DebtSecuritiesAvailableForSaleAmortizedCostExcludingAccruedInterestAfterAllowanceForCreditLoss | $5.38B | $6.3B | -14.7% | $5.38B | $6.3B | -14.7% |
| DebtSecuritiesAvailableForSaleExcludingAccruedInterest | $5.35B | $6.35B | -15.8% | $5.35B | $6.35B | -15.8% |
| Deferred Federal Income Tax Expense (Benefit) | – | – | – | -$165M | -$300M | +45.0% |
| Deferred Foreign Income Tax Expense (Benefit) | – | – | – | $120M | -$5M | +2,500.0% |
| Deferred Income Tax Assets, Net | $2.44B | $2.42B | +0.8% | $2.44B | $2.42B | +0.8% |
| Deferred Income Tax Expense (Benefit) | – | – | – | $219M2025-07-31 | -$1.7B | +112.9% |
Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.
Sources
Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-K 2026-07-31, 10-Q 2026-04-30, 10-Q 2026-01-31, 10-Q 2025-10-31, 10-K 2025-07-31, 10-Q 2025-04-30, 10-Q 2025-01-31, 10-Q 2024-10-31, 10-K 2024-07-31
Data as of 2026-11-01