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PANW

Palo Alto Networks, Inc.

PANW

Palo Alto Networks, Inc. • NASDAQ
$190.09 ▲ 2.56% (+4.74)
Market Cap $127.12 B
52w High $223.61
52w Low $144.15
Dividend Yield 0%
P/E 120.31
Volume 4.80M
Outstanding Shares 668.75M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $2.474B ▼ $1.527B ▲ $334M ▲ 13.5% ▲ $0.49 ▲ $412M ▼
Q4-2025 $2.536B ▲ $1.36B ▼ $253.8M ▼ 10.007% ▼ $0.38 ▼ $675.7M ▲
Q3-2025 $2.289B ▲ $1.451B ▲ $262.1M ▼ 11.45% ▼ $0.39 ▼ $399.1M ▼
Q2-2025 $2.257B ▲ $1.418B ▲ $267.3M ▼ 11.841% ▼ $0.41 ▼ $413M ▼
Q1-2025 $2.139B $1.298B $350.7M 16.397% $0.54 $453.2M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $4.21B ▲ $23.536B ▼ $14.871B ▼ $8.665B ▲
Q4-2025 $2.903B ▼ $23.576B ▲ $15.752B ▲ $7.824B ▲
Q3-2025 $3.3B ▲ $22.003B ▲ $14.772B ▲ $7.231B ▲
Q2-2025 $3.233B ▼ $20.952B ▲ $14.576B ▲ $6.375B ▲
Q1-2025 $3.391B $20.375B $14.463B $5.912B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $334M ▼ $1.771B ▲ $-983M ▼ $8M ▲ $796M ▲ $1.687B ▲
Q4-2025 $1.134B ▲ $1.021B ▲ $-762.5M ▼ $-374.1M ▼ $-115.8M ▼ $1.181B ▲
Q3-2025 $262.1M ▼ $628.7M ▲ $-517.6M ▼ $47.1M ▲ $158.2M ▲ $560.4M ▲
Q2-2025 $267.3M ▼ $556.9M ▼ $-380.8M ▲ $-232.2M ▼ $-56.1M ▼ $509.4M ▼
Q1-2025 $350.7M $1.51B $-543.8M $-219.7M $746.1M $1.466B

Revenue by Products

Product Q1-2025Q2-2025Q3-2025Q4-2025
Product
Product
 $350.00M ▲$420.00M ▲$450.00M ▲$570.00M ▲
Subscription
Subscription
 $1.19Bn ▲$1.23Bn ▲$1.23Bn ▲$1.31Bn ▲
Support
Support
 $590.00M ▲$600.00M ▲$600.00M ▲$650.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown strongly and steadily over the past five years, more than doubling as the company has expanded its security platforms. Profitability has improved meaningfully: operating results have moved from losses to solid profits as scale and higher‑margin software and subscriptions kick in. One year’s net income looks unusually high versus the trend, likely reflecting one‑off or non‑operational items, with the most recent year settling back to a more normal but still much stronger profit level than earlier years. Overall, the income statement shows a business that is still in growth mode but now doing so with improving efficiency and healthier margins.

Balance Sheet

Balance Sheet The balance sheet has strengthened considerably. Total assets have grown alongside the business, while debt has been paid down over time, moving the company toward a net cash position and reducing financial risk. Shareholders’ equity has built up from a very thin base to a more comfortable level as profits have accumulated, giving the company a sturdier financial foundation. One important watch point is the planned large acquisition in identity security, which could add substantial goodwill and possibly new debt or shares, changing the balance sheet mix and raising integration risk.

Cash Flow

Cash Flow Cash generation is a major bright spot. Operating cash flow has risen consistently and now runs well ahead of accounting profit, which is typical for successful subscription and maintenance‑heavy software models with upfront billings. Capital spending needs are modest, so a large portion of operating cash turns into free cash flow that can fund acquisitions, R&D, and other strategic uses without straining the balance sheet. The flip side is that cash flow is sensitive to deal timing and renewal strength; any slowdown in large customer commitments or pricing power would likely show up here quickly.

Competitive Edge

Competitive Edge Palo Alto Networks holds a leading position in enterprise cybersecurity, anchored by its three main platforms for network, cloud, and security operations. Its integrated “platformization” strategy, brand reputation, and broad installed base create high switching costs: once a customer standardizes on its firewalls, cloud tools, and AI‑driven operations, replacing them is disruptive and expensive. The company also benefits from network effects as more customer data improves its threat models. However, competition is intense and evolving, with rivals such as Fortinet, Zscaler, cloud hyperscalers, and other security specialists all pushing their own platforms and pricing strategies. The key ongoing risk is the need to keep demonstrating superior outcomes and integration to justify its premium positioning.

Innovation and R&D

Innovation and R&D Innovation is at the core of the strategy. The company continues to invest heavily in R&D across its Strata (network), Prisma (cloud), and Cortex (AI‑driven security operations) platforms, with a growing emphasis on “Precision AI” to automate detection and response. It is also extending its reach into identity security through the planned CyberArk acquisition and positioning itself as a provider of security for AI workloads and data. This creates substantial opportunities for deeper customer penetration and cross‑selling across a unified platform. At the same time, it raises execution risks: integrating acquired technologies, keeping platforms simple enough for customers to manage, staying ahead in the AI arms race, and preventing feature sprawl that could dilute focus or confuse buyers.

Summary

Overall, Palo Alto Networks combines strong growth with improving profitability, a much healthier balance sheet than a few years ago, and robust, recurring cash flows typical of a mature software platform business. Its competitive edge rests on an integrated, AI‑driven security platform, high switching costs, and a strong brand in a mission‑critical industry where demand is structurally supported by the rising complexity of cyber threats. The main uncertainties center on continued intense competition, the need to sustain rapid innovation, the complexity of integrating large acquisitions and expanded product scope, and sensitivity to enterprise IT security budgets. The company’s trajectory reflects a shift from a fast‑growing but more financially fragile disruptor toward a scaled, cash‑generative cybersecurity platform, with both the opportunities and execution challenges that come with that transition.

NEWS

November 21, 2025 · 8:30 AM UTC

Palo Alto Networks to Present at Upcoming Investor Event

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November 19, 2025 · 4:12 PM UTC

Palo Alto Networks to Acquire Chronosphere, Next-Gen Observability Leader, for the AI Era

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November 19, 2025 · 4:10 PM UTC

Palo Alto Networks Appoints Mark Goodburn to Board of Directors; Announces Retirement of Director Mary Pat McCarthy

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November 19, 2025 · 8:15 AM UTC

Palo Alto Networks and IBM Plan to Launch Joint Solution to Accelerate Enterprise-Wide Quantum-Safe Readiness

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November 18, 2025 · 8:15 AM UTC

Palo Alto Networks Announces New Prisma AIRS Integrations With Factory, Glean, IBM and ServiceNow to Secure the AI Agent Boom

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