PANW — Palo Alto Networks, Inc. $341.02

Generated 2026-06-30 21:48
USAIND

Quality Scorecard Growth

C62/100
✅ Pricing power (gross margin) 72% Gross margin 72% — wide margins, likely pricing power
❌ Return on equity 5% ROE 5% — low returns on capital
✅ Leverage (net debt / EBITDA) net cash Net cash — $1.0B more cash than debt
✅ Interest coverage 654x EBIT covers interest 654x — comfortably covered
✅ Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
❌ Earnings growth (net income YoY) -56% Net income -56% YoY — earnings declining
✅ Cash conversion (CFO/NI) 328% Operating cash ÷ net income 328% — earnings convert to cash
❌ Operating margin trend eroding Operating margin eroding
✅ Revenue growth 31% Revenue +31% — strong demand growth
🟡 Growth trajectory mild deceleration YoY +15% vs +21% prior 2-yr avg — mild deceleration
❌ Dilution control +21.7%/yr Shares +21.7% YoY — heavy dilution (stock-based comp)
✅ Rule of 40 69 growth 31% + FCF margin 38% = 69 — healthy growth + profitability

Growth-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

55/100
Quality ×40%62
Trajectory ×30%71
Valuation ×30%29

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$75.52$375.12
Price $341.02DCF $83.91 (-75%)Analyst $314.48 (-8%)MarketGist fair $268.37 (-21%)

DCF: 15% start growth → 2.5%, 9.2% discount (band $66.56–$108.16). Analyst: 50 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▼ -56.0% YoY
Sales
▲ +14.9% YoY
Shares Outstanding
▲ +0.2% YoY

Company Overview

Basic Information

Company Name: Palo Alto Networks, Inc.
Symbol: PANW
Exchange: NMS
Sector: Technology
Industry: Software - Infrastructure

Company Details

Country: United States
City: Santa Clara
Employees: 21,491
Market Cap: $277.93B
Website: https://www.paloaltonetworks.com

Business Description

Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

Key Metrics

Price & Valuation

Current Price
$341.02
Market Cap
$277.93B
P/E Ratio
293.98
Forward P/E
82.78
PEG Ratio
4.96
Price to Book
10.02

Profitability

Profit Margin: 7.95%
Operating Margin: -2.46%
Gross Margin: 71.96%
Return on Equity (ROE): 4.83%
Return on Assets (ROA): 1.77%
Revenue Growth: 31.10%

Financial Health

Current Ratio: 0.86
Quick Ratio: 0.73
Debt to Equity: 7.70
Total Debt: $2.13B
Total Cash: $3.11B
Beta: 0.94

Trading & Analyst Info

52-Week Range

52-Week High: $342.48
52-Week Low: $139.57
50-Day Average: $240.86
200-Day Average: $199.24

Analyst Recommendations

Recommendation: BUY
Target Mean Price: $314.48
Target High: $433.00
Target Low: $162.34

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟡 52/100

Hold / watch

Quality grade C; 2 improving / 4 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 72% — wide margins, likely pricing power
➖ Return on equity: ROE 5% — low returns on capital
➕ Leverage (net debt / EBITDA): Net cash — $1.0B more cash than debt
➕ Interest coverage: EBIT covers interest 654x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➖ Earnings growth (net income YoY): Net income -56% YoY — earnings declining
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 328% — earnings convert to cash
➖ Operating margin trend: Operating margin eroding
➕ Revenue growth: Revenue +31% — strong demand growth
➖ Dilution control: Shares +21.7% YoY — heavy dilution (stock-based comp)
➕ Rule of 40: growth 31% + FCF margin 38% = 69 — healthy growth + profitability
➕ Revenue +31.1% YoY
➖ Net income -167.6% YoY
➖ Operating margin -15.7 pts YoY
➕ Free cash flow +40.7% YoY
➖ Debt +184.1% YoY
➖ Shares outstanding +22.1% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2025-07-312024-07-312023-07-312022-07-312021-07-31
Tax Effect Of Unusual Items$-9.48M$42.00K$-1.77M$378.00KN/A
Tax Rate For Calcs$0.29$0.21$0.22$0.21N/A
Normalized EBITDA$1.97B$1.28B$876.90M$93.80MN/A
Total Unusual Items$-32.80M$200.00K$-7.90M$1.80MN/A
Total Unusual Items Excluding Goodwill$-32.80M$200.00K$-7.90M$1.80MN/A
Net Income From Continuing Operation Net Minority Interest$1.13B$2.58B$439.70M$-267.00MN/A
Reconciled Depreciation$343.40M$283.30M$282.20M$282.60MN/A
Reconciled Cost Of Revenue$2.45B$2.06B$1.91B$1.72BN/A
EBITDA$1.94B$1.28B$869.00M$95.60MN/A
EBIT$1.60B$993.10M$586.80M$-187.00MN/A
Net Interest Income$360.50M$309.60M$197.20M$-11.80MN/A
Interest Expense$1.90M$4.80M$20.50M$20.20MN/A
Interest Income$363.50M$317.90M$224.40M$15.60MN/A
Normalized Income$1.16B$2.58B$445.83M$-268.42MN/A
Net Income From Continuing And Discontinued Operation$1.13B$2.58B$439.70M$-267.00MN/A

Showing 15 of 47 rows

Balance Sheet (Annual)

Item2025-07-312024-07-312023-07-312022-07-312021-07-31
Ordinary Shares Number$667.90M$650.20M$616.60M$597.60MN/A
Share Issued$667.90M$650.20M$616.60M$597.60MN/A
Net DebtN/AN/A$856.20M$1.56B$1.35B
Total Debt$338.20M$1.34B$2.27B$3.95BN/A
Tangible Book Value$2.50B$1.44B$-1.49B$-2.92BN/A
Invested Capital$7.82B$6.13B$3.74B$3.89BN/A
Working Capital$-465.20M$-833.00M$-1.69B$-1.89BN/A
Net Tangible Assets$2.50B$1.44B$-1.49B$-2.92BN/A
Capital Lease Obligations$338.20M$380.50M$279.20M$276.10MN/A
Common Stock Equity$7.82B$5.17B$1.75B$210.00MN/A
Total Capitalization$7.82B$5.17B$1.75B$210.00MN/A
Total Equity Gross Minority Interest$7.82B$5.17B$1.75B$210.00MN/A
Stockholders Equity$7.82B$5.17B$1.75B$210.00MN/A
Other Equity InterestN/AN/AN/AN/A$129.10M
Gains Losses Not Affecting Retained Earnings$48.40M$-1.60M$-43.20M$-55.60MN/A

Showing 15 of 74 rows

Cash Flow Statement (Annual)

Item2025-07-312024-07-312023-07-312022-07-312021-07-31
Free Cash Flow$3.47B$3.10B$2.63B$1.79BN/A
Repurchase Of Capital Stock$0.00$-566.70M$-272.70M$-892.30MN/A
Repayment Of Debt$-965.60M$-1.03B$-1.69B$-600.00KN/A
Issuance Of DebtN/AN/AN/A$0.00$0.00
Capital Expenditure$-246.20M$-156.80M$-146.30M$-192.80MN/A
Interest Paid Supplemental Data$1.70M$5.60M$20.20M$20.20MN/A
Income Tax Paid Supplemental Data$505.50M$342.30M$147.10M$34.60MN/A
End Cash Position$2.28B$1.55B$1.14B$2.12BN/A
Beginning Cash Position$1.55B$1.14B$2.12B$1.88BN/A
Changes In Cash$732.40M$404.60M$-982.60M$244.70MN/A
Financing Cash Flow$-778.90M$-1.34B$-1.73B$-806.60MN/A
Cash Flow From Continuing Financing Activities$-778.90M$-1.34B$-1.73B$-806.60MN/A
Net Other Financing Charges$-183.80M$-26.60M$-20.40M$-50.30MN/A
Proceeds From Stock Option Exercised$370.50M$283.90M$258.80M$136.60MN/A
Net Common Stock Issuance$0.00$-566.70M$-272.70M$-892.30MN/A

Showing 15 of 53 rows

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