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Saturday 17 October 2026 Export PANW’s income statement to Excel — free account

Palo Alto Networks, Inc.

PANW Technology Software Infrastructure

Palo Alto Networks, Inc.’s revenue for fiscal 2026 (year ended July 2026) was $11.5 billion, up 24.5% from fiscal 2025. In the quarter to July 2026, revenue grew 34.5%, EPS fell 192.1%, free cash flow grew 34.3% and total debt rose 174.7%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; revenue growth for ten consecutive years, operating cash flow growth for five; insiders bought in the last twelve months.

342.00 28.27 −7.63%
Market cap
$302.9B
P/E
645×
Fwd P/E
135×
Dividend yield
—
F-score
3/9
Altman Z
7.45
Beneish M
−2.56
Dividend safety
n/a
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Palo Alto Networks, Inc. (PANW) Financial Analysis

Updated · Covers results through Q4 FY2026 · How this is made

Snapshot

Palo Alto Networks generated $11.5 billion of revenue in FY2026, compared with $9.2 billion in FY2025. Gross profit was $8.1 billion in FY2026, operating income was $695.0 million in FY2026, and net income was $307.0 million in FY2026. Free cash flow reached $4.1 billion in FY2026.

In Q4 FY2026, which ended July 31, 2026, revenue was $3.4 billion, gross profit was $2.3 billion, and operating income was $172.0 million. Net income was −$282.0 million in Q4 FY2026, while diluted EPS was −$0.35 in Q4 FY2026. Free cash flow was $1.3 billion in Q4 FY2026. Market capitalisation was $292.1 billion as of September 24, 2026.

Growth

Revenue grew 24.5% in FY2026 against FY2025, reaching $11.5 billion in FY2026. Revenue compound annual growth was 18.5% in FY2023–FY2026 and 22.0% in FY2021–FY2026. Diluted EPS was $0.40 in FY2026, a change of −75.0% in FY2026 against FY2025; its compound annual growth was −14.5% in FY2023–FY2026. A five-year EPS compound annual growth rate is not meaningful in FY2021–FY2026 because a value at one end is zero or negative.

Free cash flow was $4.1 billion in FY2026 and grew 18.6% in FY2026 against FY2025. Free cash flow compound annual growth was 16.1% in FY2023–FY2026 and 24.3% in FY2021–FY2026. Revenue was $3.4 billion in Q4 FY2026, up 34.5% in Q4 FY2026 against Q4 FY2025, while free cash flow was $1.3 billion in Q4 FY2026, up 34.3% in Q4 FY2026 against Q4 FY2025.

Profitability

Gross margin was 70.4% in FY2026, a change of −3.1 percentage points in FY2025–FY2026 and 0.3 percentage points in FY2021–FY2026. Operating margin was 6.05% in FY2026, a change of −7.4 percentage points in FY2025–FY2026 but 13.2 percentage points in FY2021–FY2026. Pre-tax margin was 4.67% in FY2026, down −12.6 percentage points in FY2025–FY2026 and up 15.6 percentage points in FY2021–FY2026.

Net margin was 2.67% in FY2026, changing by −9.6 percentage points in FY2025–FY2026 and 14.4 percentage points in FY2021–FY2026. Return on equity was 1.74% in FY2026, return on assets was 0.85% in FY2026, and return on invested capital was 1.66% in FY2026. Industry median comparisons for margins and returns are not reported.

Balance sheet

Total debt was $1.8 billion in FY2026, compared with $963.9 million in FY2024. Cash and short-term investments were $3.1 billion in FY2026, compared with $2.9 billion in FY2025. Net debt was −$1.3 billion in FY2026, compared with −$2.9 billion in FY2025. The negative net-debt figure indicates that cash and short-term investments exceeded total debt in FY2026.

Shareholders’ equity was $27.5 billion in FY2026, compared with $7.8 billion in FY2025, and book value per share was $36.70 in FY2026. Working capital was −$1.3 billion in FY2026, compared with −$465.0 million in FY2025. The current ratio was 0.9× in Q4 FY2026, while debt to equity was 0.1× in Q4 FY2026.

Cash flow & capital return

Operating cash flow was $4.6 billion in FY2026, growing 22.5% in FY2026 against FY2025. Capital expenditure was $440.0 million in FY2026, compared with $247.0 million in FY2025. Free cash flow was $4.1 billion in FY2026, growing 18.6% in FY2026 against FY2025. Free cash flow represented 1,339.7% of net income in FY2026.

Net share repurchases were $735.0 million in FY2026, compared with −$371.0 million in FY2025. Weighted average shares were 749.0 million shares in FY2026, and the share count changed 29.5% in FY2021–FY2026. Weighted average shares were 749.0 million shares in Q4 FY2026, compared with 801.0 million shares in Q3 FY2026. Dividend information is not reported.

Valuation

Market capitalisation was $292.1 billion as of September 24, 2026. P/E was 736× as of September 24, 2026. P/S was 25.4× as of September 24, 2026, higher than the 12.5× five-year median as of September 24, 2026, over the five fiscal years to FY2026, and the 9.1× ten-year median as of September 24, 2026, over the ten fiscal years to FY2026. The P/S ratio was 2.0× its five-year median and 2.8× its ten-year median as of September 24, 2026.

P/B was 10.6× as of September 24, 2026, lower than the 20.0× five-year median and 17.9× ten-year median as of September 24, 2026. EV/Sales was 25.3× as of September 24, 2026, above both the 12.2× five-year median and 9.1× ten-year median as of September 24, 2026. Industry median valuation comparisons are not reported.

What changed since last quarter

Revenue rose 13.6% in Q4 FY2026 against Q3 FY2026 to $3.4 billion in Q4 FY2026, and was up 34.5% in Q4 FY2026 against Q4 FY2025. Free cash flow rose 59.1% in Q4 FY2026 against Q3 FY2026 to $1.3 billion in Q4 FY2026, and was up 34.3% in Q4 FY2026 against Q4 FY2025. Gross margin was unchanged by 0.0 percentage points in Q4 FY2026 against Q3 FY2026, at 67.6% in Q4 FY2026, but was down −5.7 percentage points in Q4 FY2026 against Q4 FY2025.

Operating income moved to $172.0 million in Q4 FY2026 from −$183.0 million in Q3 FY2026, while net income was −$282.0 million in Q4 FY2026. Operating margin increased 11.1 percentage points in Q4 FY2026 against Q3 FY2026 but declined −14.6 percentage points in Q4 FY2026 against Q4 FY2025. No management explanation for these changes is reported.

Open questions

  • What accounts for the decline in profitability margins in FY2026?
  • Why did net income turn negative in Q4 FY2026 while free cash flow remained positive?
  • What drove the change in weighted average shares over FY2021–FY2026?
  • What explains the movement in net debt during FY2026?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.