Palo Alto Networks
PANW · NasdaqComputer Peripheral Equipment, NEC · Fiscal year ends Jul 31
Palo Alto Networks reported revenue of $11.5B in the fiscal year ended Jul 2026, up 24.5% from the year before. Operating income was $695M, an operating margin of 6.1%, and net income was $307M. Operating cash flow of $4.6B less capital expenditure of $440M left free cash flow of $4.1B.
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Jul 2022 | Jul 2023 | Jul 2024 | Jul 2025 | Jul 2026 |
|---|---|---|---|---|---|
| Revenue | $5.5B | $6.9B | $8B | $9.2B | $11.5B |
| Cost of revenue | $1.7B | $1.9B | $2.1B | $2.5B | $3.4B |
| Gross profit | $3.8B | $5B | $6B | $6.8B | $8.1B |
| Research & development | $1.4B | $1.6B | $1.8B | $2B | $2.6B |
| Operating income | −$189M | $387M | $684M | $1.2B | $695M |
| Interest expense | $27M | $27M | $8M | $3M | $0 |
| Pre-tax income | −$207M | $566M | $988M | $1.6B | $536M |
| Income tax | $60M | $127M | −$1.6B | $462M | $229M |
| Net income | −$267M | $440M | $2.6B | $1.1B | $307M |
| Diluted EPS | −0.90 | 0.64 | 3.64 | 1.60 | 0.40 |
| Diluted shares | 296M | 685M | 708M | 709M | 764M |
Balance sheet
| Fiscal year | Jul 2022 | Jul 2023 | Jul 2024 | Jul 2025 | Jul 2026 |
|---|---|---|---|---|---|
| Cash & equivalents | $2.1B | $1.1B | $1.5B | $2.3B | $2.5B |
| Receivables | $2.1B | $2.5B | $2.6B | $3B | $3.6B |
| Inventory | – | – | $116M | $113M | $117M |
| Current assets | $6.4B | $6B | $6.8B | $7.5B | $8.6B |
| Net PP&E | $358M | $355M | $361M | $387M | $523M |
| Goodwill | $2.7B | $2.9B | $3.4B | $4.6B | $22B |
| Total assets | $12.3B | $14.5B | $20B | $23.6B | $48.5B |
| Payables | $128M | $132M | $116M | $232M | $290M |
| Deferred revenue | $3.6B | $4.7B | $5.5B | $6.3B | $7.7B |
| Current liabilities | $8.3B | $7.7B | $7.7B | $8B | $9.9B |
| Long-term debt | $3.7B | $2B | – | – | – |
| Total liabilities | $12B | $12.8B | $14.8B | $15.8B | $21B |
| Shareholders' equity | $210M | $1.7B | $5.2B | $7.8B | $27.5B |
| Backlog (remaining obligations) | $8.2B | $10.6B | $12.7B | $15.8B | $21.2B |
Cash flow
| Fiscal year | Jul 2022 | Jul 2023 | Jul 2024 | Jul 2025 | Jul 2026 |
|---|---|---|---|---|---|
| Operating cash flow | $2B | $2.8B | $3.3B | $3.7B | $4.6B |
| Capital expenditure | $193M | $146M | $157M | $247M | $440M |
| Free cash flow | $1.8B | $2.6B | $3.1B | $3.5B | $4.1B |
| Depreciation & amortisation | $283M | $282M | $284M | $343M | $855M |
| Stock-based compensation | $1B | $1.1B | $1.1B | $1.3B | $1.8B |
| Acquisitions | $37M | $205M | $611M | $1.1B | $4.7B |
| Share buybacks | $892M | $273M | $567M | $0 | $1B |
Key ratios
| Fiscal year | Jul 2022 | Jul 2023 | Jul 2024 | Jul 2025 | Jul 2026 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 25.3% | 16.5% | 14.9% | 24.5% |
| Operating income growth (YoY) | – | – | 76.6% | 81.7% | −44.1% |
| EPS growth (YoY) | – | – | 468.8% | −56.0% | −75.0% |
| Gross margin | 68.8% | 72.3% | 74.3% | 73.4% | 70.4% |
| Operating margin | −3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| Net margin | −4.9% | 6.4% | 32.1% | 12.3% | 2.7% |
| Return on equityBlank when equity is negative | −127.1% | 25.2% | 49.9% | 14.5% | 1.1% |
| ROCEEBIT ÷ (assets − current liabilities) | −4.8% | 5.7% | 5.6% | 8.0% | 1.8% |
| Free cash flow margin | 32.6% | 38.2% | 38.6% | 37.6% | 35.8% |
| Cash conversion (CFO ÷ net income) | −7.43x | 6.32x | 1.26x | 3.28x | 14.8x |
| Receivable days | 142 | 130 | 119 | 117 | 115 |
| Inventory days | – | – | 21 | 17 | 13 |
| Payable days | 27 | 25 | 21 | 35 | 31 |
| Interest cover | −6.89x | 14.2x | 82.4x | 414x | – |
| Debt ÷ equity | 17.5x | 1.14x | – | – | – |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | $1.6B | $856M | – | – | – |
| Current ratio | 0.77x | 0.78x | 0.89x | 0.94x | 0.87x |
Recent filings
More in Computer Peripheral Equipment, Nec
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.