Tearsheet

Palo Alto Networks (PANW)

Market Price (12/24/2025): $188.45 | Market Cap: $128.0 Bil
Sector: Information Technology | Industry: Systems Software

Palo Alto Networks (PANW)

Market Price (12/24/2025): $188.45
Market Cap: $128.0 Bil
Sector: Information Technology
Industry: Systems Software

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

0	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 42%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39%, CFO LTM is 4.0 Bil, FCF LTM is 3.7 Bil	Weak multi-year price returns 2Y Excs Rtn is -23%	Expensive valuation multiples P/EBITPrice/EBIT or Price/(Operating Income) ratio is 78x, P/EPrice/Earnings or Price/(Net Income) is 114x
1	Low stock price volatility Vol 12M is 35%		Significant share based compensation SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 14%
2	Megatrend and thematic drivers Megatrends include Cybersecurity, Cloud Computing, and Artificial Intelligence. Themes include Network Security, Show more.		Yield minus risk free rate is negative ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.3%
3			Key risks PANW key risks include [1] its premium pricing model, Show more.

0	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 42%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 39%, CFO LTM is 4.0 Bil, FCF LTM is 3.7 Bil
1	Low stock price volatility Vol 12M is 35%
2	Megatrend and thematic drivers Megatrends include Cybersecurity, Cloud Computing, and Artificial Intelligence. Themes include Network Security, Show more.
3	Weak multi-year price returns 2Y Excs Rtn is -23%
4	Expensive valuation multiples P/EBITPrice/EBIT or Price/(Operating Income) ratio is 78x, P/EPrice/Earnings or Price/(Net Income) is 114x
5	Significant share based compensation SBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 14%
6	Yield minus risk free rate is negative ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.3%
7	Key risks PANW key risks include [1] its premium pricing model, Show more.

Valuation, Metrics & Events

	12/24/25	2024	2023	2022
Share Price CYE	$188.45	$181.96	$147.44	$69.77
Market Cap CYE ($ Bil)	128.0	118.9	91.4	41.8
Total Debt ($ Bil)	0.3	0.3	1.3	2.3
Total Cash ($ Bil)	4.2	2.9	2.6	2.4
Enterprise Value ($ Bil)	124.1	119.2	92.7	44.1
Valuation Ratios
P/S TTM	13.4	13.1	11.7	6.1
P/EBIT TTM	78.0	75.5	94.8	72.1
P/E TTM	114.5	106.3	36.5	96.2
P/FCF TTM	34.7	34.7	30.4	16.1
Sector Ratios
P/S TTM (Sector)	3.2	3.2	2.9	2.6
P/EBIT TTM (Sector)	3.0	2.3	-0.2	-0.7
P/E TTM (Sector)	-0.2	-0.3	-0.5	-0.8
P/FCF TTM (Sector)	12.2	13.7	12.2	6.9

	12/24/25	2024	2023
Share Price CYE	$188.45	$181.96	$147.44
Market Cap CYE ($ Bil)	128.0	118.9	91.4
Total Debt ($ Bil)	0.3	0.3	1.3
Total Cash ($ Bil)	4.2	2.9	2.6
Enterprise Value ($ Bil)	124.1	119.2	92.7
Valuation Ratios
P/S TTM	13.4	13.1	11.7
P/EBIT TTM	78.0	75.5	94.8
P/E TTM	114.5	106.3	36.5
P/FCF TTM	34.7	34.7	30.4
Sector Ratios
P/S TTM (Sector)	3.2	3.2	2.9
P/EBIT TTM (Sector)	3.0	2.3	-0.2
P/E TTM (Sector)	-0.2	-0.3	-0.5
P/FCF TTM (Sector)	12.2	13.7	12.2

	PANW	S&P 500
REVENUE GROWTH	GOOD
Rev LTM ($ Bil)	9.6
Rev Chg Q	15.7%	7.3%
Rev Chg LTM	15.3%	6.1%
Rev Chg 3Y Avg	18.1%	5.5%
PROFITABILITY	GOOD
Op Inc LTM ($ Bil)	1.3
CFO LTM ($ Bil)	4.0
Net Inc LTM ($ Bil)	1.1
Op Mgn LTM	13.2%	18.8%
CFO/Rev LTM	41.6%	20.4%
Net Inc Mgn	11.7%	13.1%
VALUATION	VERY HIGH
P/S	13.4	3.2
P/CFO	32.2	15.7
P/FCF	34.7	20.6
P/E	114.5	23.5
STABILITY	VERY GOOD
Debt/Equity	0.00	0.21
Cash/Assets	0.18	0.07

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Metric	Value	Date	Source
Next-Generation Security (NGS) Annual Recurring Revenue (ARR)	$5.6 billion	7312025	Link
Remaining Performance Obligation (RPO)	$15.8 billion	7312025	Link
Billings	$3.50 billion	7312024	Link
Number of Organizations Worldwide Trusted By	more than 70,000	8222025	Link

Upcoming
2/12/2026	Earnings Release	Rev: $2.0 Bil (E) EPS: $0.93 (E)

PANW Stock

Return (1M):

Why The Stock Moved

Qualitative Assessment

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It's challenging to provide a precise explanation for a specific future stock movement of -1.3% for Palo Alto Networks (PANW) between August 31, 2025, and today, December 24, 2025, as this period lies in the future, and detailed stock performance and influencing factors cannot be predicted with accuracy. However, based on recent information and trends leading up to the current date, we can highlight potential factors that could influence the stock's performance.

1. Positive Analyst Sentiment and Growth Projections: As of December 22, 2025, analysts had a consensus rating of "Moderate Buy" for PANW, with an average price target of $226.20, representing a potential upside of approximately 20.2% from its price of $188.12. Earnings are projected to grow by 19.32% in the coming year, and revenue is expected to increase from $9.22 billion in fiscal year 2025 to $16.98 billion in fiscal year 2030. These positive forecasts could generally support the stock's value, suggesting that a negative movement would likely be in response to new, unforeseen events.

2. Strategic Partnerships and AI Security Focus: Palo Alto Networks announced a significant expansion of its strategic partnership with Google Cloud on December 19, 2025. This collaboration aims to secure the development and deployment of AI solutions and involves Palo Alto Networks migrating key internal workloads to Google Cloud. The company's leadership in AI-driven cybersecurity and platform consolidation is seen as a key driver for recurring revenue growth and market share expansion. This strategic move is anticipated to further establish Palo Alto Networks as a "full stack security and observability leader."

3. Strong Earnings Performance: On November 20, 2025, Palo Alto Networks reported quarterly earnings of $0.93 per share, surpassing the consensus estimate of $0.89. The company's revenue for the quarter was $2.47 billion, slightly above analysts' expectations. This strong performance in its fiscal Q1, including a 16% year-over-year revenue increase, indicates ongoing operational strength.

4. Insider Selling Activity Exceeding USD 5 Million: On December 3, 2025, EVP Lee Klarich sold 120,774 shares of Palo Alto Networks stock for a total transaction of $23,177,738.34. This transaction significantly exceeds the USD 5 million threshold and could be perceived negatively by investors, potentially contributing to downward pressure on the stock.

5. Market Valuation Considerations: As of December 22, 2025, Palo Alto Networks was trading at a Forward P/E ratio of 48.75, which is lower than its industry's Forward P/E of 55.01, suggesting a relative discount. However, its P/E ratio of 119.06 is higher than the market average of approximately 39.11, indicating it is a more expensive stock. While the company's valuation metrics might suggest it is somewhat expensive, strong growth projections and strategic positioning in the cybersecurity and AI security markets could justify these valuations to some investors. Show less

Stock Movement Drivers

Fundamental Drivers

The -7.4% change in PANW stock from 9/23/2025 to 12/23/2025 was primarily driven by a -5.1% change in the company's P/E Multiple.

	9232025	12232025	Change
Stock Price ($)	203.25	188.12	-7.44%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	9221.70	9556.70	3.63%
Net Income Margin (%)	12.30%	11.69%	-4.95%
P/E Multiple	120.44	114.33	-5.07%
Shares Outstanding (Mil)	672.10	679.00	-1.03%
Cumulative Contribution			-7.45%

LTM = Last Twelve Months as of date shown

Market Drivers

9/23/2025 to 12/23/2025

	Return	Correlation
PANW	-7.4%
Market (SPY)	3.7%	60.6%
Sector (XLK)	4.2%	63.9%

Fundamental Drivers

The -6.7% change in PANW stock from 6/24/2025 to 12/23/2025 was primarily driven by a -16.2% change in the company's Net Income Margin (%).

	6242025	12232025	Change
Stock Price ($)	201.69	188.12	-6.73%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	8874.90	9556.70	7.68%
Net Income Margin (%)	13.95%	11.69%	-16.20%
P/E Multiple	108.35	114.33	5.53%
Shares Outstanding (Mil)	665.10	679.00	-2.09%
Cumulative Contribution			-6.77%

LTM = Last Twelve Months as of date shown

Market Drivers

6/24/2025 to 12/23/2025

	Return	Correlation
PANW	-6.7%
Market (SPY)	13.7%	42.7%
Sector (XLK)	18.2%	46.5%

Fundamental Drivers

The -0.1% change in PANW stock from 12/23/2024 to 12/23/2025 was primarily driven by a -64.6% change in the company's Net Income Margin (%).

	12232024	12232025	Change
Stock Price ($)	188.22	188.12	-0.05%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	8288.40	9556.70	15.30%
Net Income Margin (%)	32.99%	11.69%	-64.57%
P/E Multiple	45.02	114.33	153.98%
Shares Outstanding (Mil)	654.00	679.00	-3.82%
Cumulative Contribution			-0.20%

LTM = Last Twelve Months as of date shown

Market Drivers

12/23/2024 to 12/23/2025

	Return	Correlation
PANW	-0.1%
Market (SPY)	16.7%	63.8%
Sector (XLK)	23.2%	64.9%

Fundamental Drivers

The 166.3% change in PANW stock from 12/24/2022 to 12/23/2025 was primarily driven by a 83.6% change in the company's P/S Multiple.

	12242022	12232025	Change
Stock Price ($)	70.64	188.12	166.33%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	5817.50	9556.70	64.28%
P/S Multiple	7.28	13.37	83.59%
Shares Outstanding (Mil)	599.60	679.00	-13.24%
Cumulative Contribution			161.66%

LTM = Last Twelve Months as of date shown

Market Drivers

12/24/2023 to 12/23/2025

	Return	Correlation
PANW	26.2%
Market (SPY)	48.4%	49.7%
Sector (XLK)	53.8%	51.2%

Return vs. Risk

Price Returns Compared

	2020	2021	2022	2023	2024	2025	Total [1]
Returns
PANW Return	54%	57%	-25%	111%	23%	4%	392%
Peers Return	146%	60%	-39%	66%	22%	22%	487%
S&P 500 Return	16%	27%	-19%	24%	23%	17%	114%
Monthly Win Rates [3]
PANW Win Rate	58%	83%	42%	58%	58%	67%
Peers Win Rate	62%	72%	33%	67%	60%	55%
S&P 500 Win Rate	58%	75%	42%	67%	75%	73%
Max Drawdowns [4]
PANW Max Drawdown	-43%	-11%	-26%	-4%	-11%	-16%
Peers Max Drawdown	-24%	-10%	-45%	-9%	-12%	-12%
S&P 500 Max Drawdown	-31%	-1%	-25%	-1%	-2%	-15%

[1] Cumulative total returns since the beginning of 2020
[2] Peers: FTNT, CRWD, ZS, CSCO, MSFT. See PANW Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/23/2025 (YTD)

How Low Can It Go

Unique Key	Event	PANW	S&P 500
2022 Inflation Shock	2022 Inflation Shock
2022 Inflation Shock% Loss	% Loss	-36.0%	-25.4%
2022 Inflation Shock% Gain to Breakeven	% Gain to Breakeven	56.2%	34.1%
2022 Inflation ShockTime to Breakeven	Time to Breakeven	136 days	464 days
2020 Covid Pandemic	2020 Covid Pandemic
2020 Covid Pandemic% Loss	% Loss	-46.8%	-33.9%
2020 Covid Pandemic% Gain to Breakeven	% Gain to Breakeven	88.0%	51.3%
2020 Covid PandemicTime to Breakeven	Time to Breakeven	124 days	148 days
2018 Correction	2018 Correction
2018 Correction% Loss	% Loss	-31.2%	-19.8%
2018 Correction% Gain to Breakeven	% Gain to Breakeven	45.3%	24.7%
2018 CorrectionTime to Breakeven	Time to Breakeven	288 days	120 days

Compare to CSCO, CRSR, MITK, AGPU, AIXC

In The Past

Palo Alto Networks's stock fell -36.0% during the 2022 Inflation Shock from a high on 4/13/2022. A -36.0% loss requires a 56.2% gain to breakeven.

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About Palo Alto Networks (PANW)

Business Description Analogies Products Customers Suppliers Management Key Risks Emerging Threats Market Size Revenue Drivers Capital Allocation

Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customer's network and instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, uniform resource locator filtering, laptop and mobile device protection, and firewall; and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security analytics and automation, and threat intelligence and cyber security consulting; 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. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large 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.

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The Microsoft of enterprise cybersecurity.
The Cisco of next-generation security.
The Salesforce of cybersecurity platforms.

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Next-Generation Firewalls (NGFWs): These are network security appliances (physical or virtual) that provide advanced threat prevention and control over network traffic.
Prisma Cloud: A comprehensive cloud-native security platform that secures applications across the entire development lifecycle, from code to cloud. (Category: Cloud Security Service)
Cortex XDR: An extended detection and response platform that integrates endpoint, network, and cloud data to stop sophisticated attacks. (Category: Security Operations Service)
Cortex XSOAR: A security orchestration, automation, and response platform that automates security operations and incident response workflows. (Category: Security Operations Service)
WildFire: A cloud-based threat intelligence service that analyzes unknown files and URLs to identify and prevent zero-day exploits. (Category: Threat Intelligence Service)

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Palo Alto Networks (symbol: PANW) primarily sells its cybersecurity products and services to other companies and organizations, operating on a Business-to-Business (B2B) model. Due to the nature of its cybersecurity business, its extensive global reach, and a broad, diversified customer base, Palo Alto Networks does not publicly disclose the specific names of its individual major end-user customer companies.

Instead, its major customers span a wide range of industries and sectors globally. These can be broadly categorized as:

Large Enterprises: This segment includes multinational corporations and large organizations across virtually all industries, such as financial services, healthcare, technology, manufacturing, energy, and retail. These companies leverage Palo Alto Networks' comprehensive security platforms to protect their complex networks, cloud environments, and endpoints from sophisticated cyber threats.
Government Agencies: Palo Alto Networks serves various government entities at federal, state, and local levels, including defense organizations, intelligence agencies, and public sector institutions that require robust and highly secure infrastructure to protect sensitive data and critical operations.
Service Providers: This category includes telecommunications companies, cloud service providers, and Managed Security Service Providers (MSSPs). These providers either utilize Palo Alto Networks' technologies to secure their own critical infrastructure or integrate them into their offerings to provide advanced security services to their own clients.

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Amazon Web Services (AMZN)
Microsoft Azure (MSFT)
Google Cloud Platform (GOOGL)

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Nikesh Arora
Chairman and Chief Executive Officer
Nikesh Arora became Chairman and CEO of Palo Alto Networks in June 2018. Before joining Palo Alto Networks, he served as president and chief operating officer of SoftBank Group Corp. Prior to SoftBank, he spent a decade at Google, Inc., where he was a senior executive, holding roles such as Chief Business Officer and Senior Vice President, responsible for global sales and operations. Arora also founded T-Motion PLC, which later merged with T-Mobile International. He has served on the boards of various companies, including Uber Technologies, Inc., Compagnie Financière Richemont S.A., SoftBank Group Corp., and Yahoo! Japan.

Dipak Golechha
Chief Financial Officer
Dipak Golechha joined Palo Alto Networks in December 2020 as Senior Vice President of Finance and was appointed Chief Financial Officer in March 2021. He brings extensive finance leadership experience, having spent 18 years at Procter & Gamble in various global finance and operating capacities, including divisional CFO and chief operating officer. Golechha also held CFO roles at Chobani and The Nature's Bounty Company. Notably, he served as CEO of Excelligence Learning Corp, a privately held tech-enabled education company, for four years.

BJ Jenkins
President
BJ Jenkins joined Palo Alto Networks as President in August 2021. Before this role, he served as President and CEO of Barracuda Networks from 2012 to 2021, where he oversaw the company's IPO on the New York Stock Exchange and several strategic acquisitions. During his tenure, Barracuda Networks was acquired by the private equity firm Thoma Bravo in 2017. Earlier in his career, Jenkins held multiple leadership positions at EMC, including president of its Backup Recovery Systems (BRS) Division. He has also served on the boards of Apgee Corporation (acquired by Google, Inc.) and Nimble Storage, Inc. (acquired by HPE).

Lee Klarich
Chief Product and Technology Officer
Lee Klarich has been instrumental at Palo Alto Networks since the early inception of its products in 2006, leading product management and overseeing the company's product strategy and roadmap. He became Chief Product and Technology Officer in August 2025 and also joined the Palo Alto Networks Board of Directors. Prior to his time at Palo Alto Networks, he was the director of product management for Juniper Networks, a position he gained through the acquisition of NetScreen Technologies. He also held various roles at Excite@Home and Packard Bell-NEC.

Karim Temsamani
President, Next Generation Security
Karim Temsamani joined Palo Alto Networks in September 2024 as President, Next Generation Security. In this role, he leads global sales and go-to-market programs for the company's cloud security, security operations, and network security platforms. Previously, Temsamani served as CEO of Cardlytics, a digital advertising platform. He also led product and engineering for Stripe's banking and financial products and held leadership positions at T-Mobile International, including chief marketing officer. He was also the CEO and founder of T-Motion PLC, which merged with T-Mobile International in 2002.

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Key Risks to Palo Alto Networks (PANW)

Palo Alto Networks, a prominent cybersecurity company, faces several key risks that could impact its business performance. These risks primarily stem from the highly dynamic and competitive nature of the cybersecurity industry, its growth strategy involving acquisitions, and operational challenges related to its product supply chain.

1. Intense Competition and Pricing Pressure

The cybersecurity landscape is characterized by intense competition from a wide array of players, including established vendors like Fortinet, Cisco, and Check Point Software Technologies, as well as rapidly expanding cloud-native competitors such as CrowdStrike, Zscaler, and Wiz. This competitive environment can exert pressure on Palo Alto Networks' growth and profit margins. Furthermore, some critics suggest that Palo Alto Networks' solutions are priced at a premium, which might limit their accessibility for smaller organizations and contribute to pricing challenges.

2. Integration Risks from Acquisitions

Palo Alto Networks has a history of strategic acquisitions, completing 21 throughout its lifecycle to expand its market share and product offerings. While this strategy allows the company to integrate best-in-class products, it also introduces risks associated with successfully integrating these acquired companies and their diverse tools. Challenges in integrating these entities can lead to complex offerings that some potential customers might find difficult to navigate. Recent reports also highlight execution risks tied to specific acquisitions, such as the announced agreement to acquire CyberArk.

3. Supply Chain and Inventory Management Risks

Palo Alto Networks' business model relies significantly on product sales, making effective inventory management and a stable supply of product components crucial. The complexity of managing its supply chain means that any insufficiency in supply could result in lost sales opportunities or delayed revenue. Conversely, maintaining excessive inventory levels could negatively affect the company's gross margins. The company is also exposed to supply shortage risks due to its reliance on limited sources for key components, as evidenced by past disruptions such as the global semiconductor shortage.

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The increasing maturity and breadth of native cloud security services offered by hyperscale cloud providers (e.g., AWS Security Hub, AWS GuardDuty, Microsoft Defender for Cloud, Azure Sentinel, Google Cloud Security Command Center). As these platforms enhance their security capabilities and integrate them more deeply into their infrastructure, enterprises may increasingly rely on these native tools for foundational and even advanced cloud security, potentially reducing the need for third-party cloud security platforms like Palo Alto Networks' Prisma Cloud for certain use cases or for customers heavily invested in a single cloud provider. This trend could exert pressure on the growth and market share of independent cloud security vendors.

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Palo Alto Networks (PANW) operates within a significant and expanding global cybersecurity market.

The company's total addressable market (TAM) for its core security segments is estimated at $110 billion, with a projected compound annual growth rate (CAGR) of 14%. A broader cybersecurity landscape, as estimated by McKinsey, suggests a total addressable market of $1.5 trillion to $2.0 trillion globally.

Palo Alto Networks focuses on three main market segments: Network Security, Cloud Security, and Security Operations. Within the Network Security segment, the overall total addressable market grew at a 9% CAGR from 2021 to 2024. More specifically, the software firewalls segment within Network Security saw a 13% CAGR, while the Secure Access Service Edge (SASE) segment experienced a notable 36% CAGR during the same period. The total network security market is projected to grow at a CAGR of 2.8% from 2024 to 2029, with firewall growth specifically forecasted at a 5.0% CAGR.

Palo Alto Networks serves customers in over 150 countries, with primary markets segmented across the Americas, EMEA (Europe, the Middle East, and Africa), and JAPAC (Japan and Asia Pacific).

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Expected Drivers of Future Revenue Growth for Palo Alto Networks (PANW)

Platformization Strategy: Palo Alto Networks' strategy to consolidate security spending through its comprehensive cybersecurity platform is a significant driver. This approach leads to increased adoption of multiple products across its three main platforms (network security, cloud security, and security operations), resulting in higher average annual recurring revenue (ARR) per platformized customer. The company reported over 90 new platformizations in Q4 2024, bringing the total to over 1,000 among its largest customers. CEO Nikesh Arora noted in Q1 2025 that platformization is a "game changer that will solve security and enable better AI outcomes" and is expected to be a multi-year trend.
Growth in Next-Generation Security (NGS) Offerings: The expansion and adoption of Next-Generation Security (NGS) products and services, including software firewalls, Secure Access Service Edge (SASE), and AI-powered solutions, are key revenue drivers. NGS ARR grew 43% year-over-year in Q4 2024 to $4.22 billion, and 40% year-over-year to $4.5 billion in Q1 2025. Specific growth drivers highlighted in Q4 2025 included software firewalls, SASE, and XIAM, with AI ARR growing over two and a half times year over year. The company forecasts NGS ARR to be between $4.70 billion and $4.75 billion for Q2 2025, representing a 35% to 36% increase year-over-year.
Expansion of Cloud Security (Prisma Cloud) and AI-Driven Solutions: Palo Alto Networks continues to enhance its cloud security capabilities with new modules for Prisma Cloud, maintaining its leadership in this competitive sector. The rapid adoption of AI and public cloud services presents substantial opportunities for the company to secure new and existing revenue streams. AI ARR specifically reached approximately $545 million in Q4 2025, indicating strong growth in AI-driven security solutions.
International Market Expansion and Advanced Subscription Services: The company has demonstrated double-digit revenue growth across all its geographic theaters, including the Americas, EMEA, and JAPAC. This international expansion, coupled with the continuous delivery of new innovations and the adoption of advanced subscription services and add-on modules within SASE (such as Autonomous Digital Experience Management or ADEM, and Cloud Access Security Broker or CASB), further fuels revenue growth by expanding existing platformized deployments.

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Share Repurchases

Palo Alto Networks' board of directors authorized an additional $500 million for share repurchases in August 2024, increasing the total authorization to $1 billion, set to expire on December 31, 2025.
Prior authorizations included increases in December 2020, August 2021, August 2022, November 2023, and August 2024, accumulating to a total authorization of $4.1 billion, with the expiration date extended to December 31, 2025.
Annual share repurchases were approximately $1.178 billion in fiscal year 2021, $892.3 million in fiscal year 2022, $272.7 million in fiscal year 2023, and $566.7 million in fiscal year 2024.

Share Issuance

In November 2024, a two-for-one forward stock split was approved, effective December 2024, which also proportionately increased the number of authorized common shares from 1.0 billion to 2.0 billion.
At the December 2024 Annual Meeting, shareholders approved an increase of 3 million shares to the 2021 Equity Incentive Plan.
Shares outstanding have shown an increasing trend, from approximately 0.685 billion in 2023 to 0.708 billion in 2024, and 0.709 billion in 2025.

Outbound Investments

Palo Alto Networks completed the acquisition of CyberArk for approximately $25 billion in July 2025, marking a significant entry into identity security.
The company acquired Protect AI for an estimated $500 million to $700 million, with the acquisition completed in July 2025, to secure AI applications and models.
Other strategic acquisitions between 2021 and 2024 include Bridgecrew (February 2021, $156 million), Cider Security (November 2022, $300 million), Dig Security (October 2023, $400 million), Talon Cyber Security (November 2023, $625 million or $600 million), and IBM's QRadar SaaS Assets (September 2024, approximately $1.14 billion).

Capital Expenditures

Capital expenditures for Palo Alto Networks were $116 million in fiscal year 2021, $192.8 million in fiscal year 2022, $146.3 million in fiscal year 2023, $156.8 million in fiscal year 2024, and peaked at $246.2 million in fiscal year 2025.
Capital expenditures are generally focused on investments in physical assets like property, industrial buildings, or equipment.

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TOST (33.6% | 86.9x)

Toast

PAY (33.7% | 59.7x)

Paymentus

STNE (21.3% | 0.6x)

StoneCo

Higher Rev Chg LTM (Value for PANW: 15.3%)

CRWV (235.4%)

CoreWeave

NET (28.1%)

Cloudflare

CRWD (22.0%)

CrowdStrike

NOW (21.1%)

ServiceNow

MSFT (15.6%)

Microsoft

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

ZS (32.9%)

Zscaler

CRWD (31.1%)

CrowdStrike

NET (31.1%)

Cloudflare

MDB (25.0%)

MongoDB

NOW (22.3%)

ServiceNow

Higher Op Mgn LTM (Value for PANW: 13.2%)

MSFT (46.3%)

Microsoft

GEN (37.9%)

Gen Digital

FTNT (31.0%)

Fortinet

AFRM (15.6%)

Affirm

NOW (13.9%)

ServiceNow

Higher CFO/Rev LTM (Value for PANW: 41.6%)

MSFT (50.0%)

Microsoft

QLYS (43.1%)

Qualys

Higher FCF/Rev LTM (Value for PANW: 38.6%)

QLYS (41.6%)

Qualys

Higher Total Yield (Value for PANW: 0.9%)

MSFT (3.6%)

Microsoft

FTNT (3.1%)

Fortinet

TOST (1.3%)

Toast

NOW (1.1%)

ServiceNow

AFRM (0.9%)

Affirm

SECTOR: Information Technology

Higher Rev Chg 3Y Avg | Lower P/S (Values for PANW: 18.1% | 13.4x)

MU (28.3% | 7.3x)

Micron Technology

APH (20.7% | 8.0x)

Amphenol

NOW (22.3% | 12.7x)

ServiceNow

TEAM (22.2% | 7.8x)

Atlassian

ZS (32.9% | 12.8x)

Zscaler

Higher Rev Chg 3Y Avg | Lower P/Op Inc (Values for PANW: 18.1% | 100.9x)

NVDA (91.6% | 41.8x)

NVIDIA

AVGO (25.2% | 63.4x)

Broadcom

MU (28.3% | 22.6x)

Micron Technology

APP (36.0% | 70.9x)

AppLovin

APH (20.7% | 32.4x)

Amphenol

Higher Rev Chg LTM (Value for PANW: 15.3%)

NVDA (65.2%)

NVIDIA

PLTR (47.2%)

Palantir Technologies

AMD (31.8%)

Advanced Micro Devices

AVGO (23.9%)

Broadcom

MSFT (15.6%)

Microsoft

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

NVDA (91.6%)

NVIDIA

APP (36.0%)

AppLovin

PLTR (29.3%)

Palantir Technologies

MU (28.3%)

Micron Technology

AVGO (25.2%)

Broadcom

Higher Op Mgn LTM (Value for PANW: 13.2%)

NVDA (58.8%)

NVIDIA

MSFT (46.3%)

Microsoft

AVGO (40.8%)

Broadcom

ORCL (31.9%)

Oracle

AAPL (31.9%)

Apple

Higher CFO/Rev LTM (Value for PANW: 41.6%)

MU (53.6%)

Micron Technology

MSFT (50.0%)

Microsoft

PLTR (46.6%)

Palantir Technologies

NVDA (44.4%)

NVIDIA

AVGO (43.1%)

Broadcom

Higher FCF/Rev LTM (Value for PANW: 38.6%)

APP (50.6%)

AppLovin

ANET (47.9%)

Arista Networks

PLTR (46.0%)

Palantir Technologies

AVGO (42.1%)

Broadcom

NVDA (41.3%)

NVIDIA

Higher Total Yield (Value for PANW: 0.9%)

ORCL (3.7%)

Oracle

MSFT (3.6%)

Microsoft

AAPL (2.8%)

Apple

NVDA (2.2%)

NVIDIA

AVGO (1.4%)

Broadcom

All Other Sectors

Higher Rev Chg 3Y Avg | Lower P/S (Values for PANW: 18.1% | 13.4x)

BRK-B (19.8% | 2.7x)

Berkshire Hathaway

UBER (19.6% | 3.4x)

Uber Technologies

PGR (20.6% | 1.6x)

Progressive

WELL (20.9% | 12.9x)

Welltower

KKR (44.5% | 7.0x)

KKR

Higher Rev Chg 3Y Avg | Lower P/Op Inc (Values for PANW: 18.1% | 100.9x)

LLY (23.4% | 42.1x)

Eli Lilly

UBER (19.6% | 37.0x)

Uber Technologies

WELL (20.9% | 79.5x)

Welltower

PLD (18.1% | 34.1x)

Prologis

NEM (23.9% | 12.3x)

Newmont

Higher Rev Chg LTM (Value for PANW: 15.3%)

LLY (36.8%)

Eli Lilly

META (21.3%)

Meta Platforms

GE (17.7%)

GE Aerospace

MS (17.6%)

Morgan Stanley

NFLX (15.4%)

Netflix

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

LLY (23.4%)

Eli Lilly

WELL (20.9%)

Welltower

PGR (20.6%)

Progressive

BRK-B (19.8%)

Berkshire Hathaway

UBER (19.6%)

Uber Technologies

Higher Op Mgn LTM (Value for PANW: 13.2%)

MA (58.3%)

Mastercard

META (43.2%)

Meta Platforms

LLY (43.0%)

Eli Lilly

GOOGL (32.2%)

Alphabet

JNJ (26.2%)

Johnson & Johnson

Higher CFO/Rev LTM (Value for PANW: 41.6%)

RY (83.0%)

Royal Bank of Canada

V (57.6%)

Visa

BAC (57.3%)

Bank of America

META (56.8%)

Meta Platforms

MA (56.1%)

Mastercard

Higher FCF/Rev LTM (Value for PANW: 38.6%)

RY (79.6%)

Royal Bank of Canada

BAC (57.3%)

Bank of America

V (53.9%)

Visa

MA (52.5%)

Mastercard

COF (43.2%)

Capital One Financial

Higher Total Yield (Value for PANW: 0.9%)

BRK-B (6.2%)

Berkshire Hathaway

META (3.8%)

Meta Platforms

GOOGL (3.5%)

Alphabet

AMZN (2.9%)

Amazon.com

LLY (2.0%)

Eli Lilly

		Best Bets In Information Technology Sector
	PANW	VRSN	IDCC	NVDA	RMBS	GEN	ZM	DBX	YOU	MPWR	DAVE
What You Pay
P/E	114.3	28.2	17.0	46.4	44.3	29.7	16.3	14.6	19.4	23.8	20.3
P/EBIT	77.9	20.4	13.8	39.5	37.8	10.5	23.7	11.9	21.1	65.3	23.2
What You Get
Rev Chg Q	15.7%	7.3%	28.0%	62.5%	22.7%	25.3%	4.4%	-0.7%	15.5%	18.9%	63.0%
Rev Chg LTM	15.3%	5.5%	28.8%	65.2%	31.0%	16.2%	3.8%	-0.4%	17.8%	30.5%	53.8%
Rev Chg 3Y Avg	18.1%	5.2%	27.1%	91.6%	17.3%	16.5%	3.4%	3.4%	31.0%	17.2%	38.6%
FCF/Rev 3Y Avg	38.8%	57.4%	54.2%	43.4%	39.3%	36.7%	36.1%	33.4%	32.5%	28.6%	26.0%

[1] Choosing top 10 best bets from each sector quarterly is an alpha producing strategy vs sector benchmark
[2] Historical annualized return of 24%, alpha of 2.9%, and sharpe of 1.04

Latest Trefis Analyses

	Title	Topic
0	DASHBOARDS
1	Palo Alto Networks Earnings Notes
2	Palo Alto Networks Earnings Notes
3	Is Palo Alto Networks Stock Built to Withstand More Downside?	Return
4	How Does Palo Alto Networks Stock Compare With Peers?
5	5-Day Sell-Off Sends Palo Alto Networks Stock Down -11%	Notification
6	Palo Alto Networks Earnings Notes
7	Wait For A Dip To Buy Palo Alto Networks Stock	Buy or Fear
8	Better Bet Than PANW Stock: Pay Less Than Palo Alto Networks To Get More From NVDA, APP
9	Better Bet Than PANW Stock: Pay Less Than Palo Alto Networks To Get More From NVDA, PAY
10	Better Bet Than PANW Stock: Pay Less Than Palo Alto Networks To Get More From PAY

	Title
0	ARTICLES

Trade Ideas

Select ideas related to PANW. For more, see Trefis Trade Ideas.

Unique Key	Date	Ticker	Company	Category	Trade Strategy	6M Fwd Rtn	12M Fwd Rtn	12M Max DD
ENPH_11302025_Dip_Buyer_High_CFO_Margins_ExInd_DE	11302025	ENPH	Enphase Energy	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	11.7%	11.7%	-0.9%
PD_11262025_Dip_Buyer_High_FCF_Yield_ExInd_DE_RevG	11262025	PD	PagerDuty	Dip Buy	DB \| FCF Yield \| Low D/EDip Buy with High Free Cash Flow Yield Buying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap	10.2%	10.2%	0.0%
CRM_11212025_Dip_Buyer_FCFYield	11212025	CRM	Salesforce	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	16.2%	16.2%	-0.1%
HUBS_11212025_Dip_Buyer_High_CFO_Margins_ExInd_DE	11212025	HUBS	HubSpot	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	11.7%	11.7%	0.0%
FIVN_11212025_Dip_Buyer_High_FCF_Yield_ExInd_DE_RevG	11212025	FIVN	Five9	Dip Buy	DB \| FCF Yield \| Low D/EDip Buy with High Free Cash Flow Yield Buying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap	4.2%	4.2%	0.0%
PANW_11302022_Monopoly_xInd_xCD_Getting_Cheaper	11302022	PANW	Palo Alto Networks	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	25.6%	73.7%	-21.0%
PANW_2292020_Monopoly_xInd_xCD_Getting_Cheaper	02292020	PANW	Palo Alto Networks	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	37.9%	94.1%	-28.2%
PANW_5312019_Monopoly_xInd_xCD_Getting_Cheaper	05312019	PANW	Palo Alto Networks	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	13.5%	17.6%	-33.8%
PANW_7312017_Monopoly_xInd_xCD_Getting_Cheaper	07312017	PANW	Palo Alto Networks	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	18.9%	50.4%	-3.1%
PANW_12312016_Monopoly_xInd_xCD_Getting_Cheaper	12312016	PANW	Palo Alto Networks	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	7.0%	15.9%	-13.6%

Recent Active Movers

Top Gainers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
RZLT	Rezolute	0.3	18.0%	-50.6%
WW	WW International	2.4	14.2%
NRGV	Energy Vault	0.8	10.4%	122.8%
METC	Ramaco Resources	1.0	8.5%	67.0%
UAMY	United States Antimony	0.7	7.9%	240.7%
LION	Lionsgate Studios	2.6	7.4%	-71.0%
GHM	Graham	0.8	7.3%	56.3%
VG	Venture Global	17.0	6.4%
CRK	Comstock Resources	6.7	5.7%	26.6%
SSII	SS Innovations International	1.1	5.5%	-25.0%

Top Losers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
TPL	Texas Pacific Land	6.8	-67.3%	-18.9%
GOSS	Gossamer Bio	0.7	-12.9%	263.1%
CSIQ	Canadian Solar	1.6	-11.8%	115.2%
TDUP	ThredUp	0.8	-11.7%	363.3%
LAB	Standard BioTools	0.6	-11.0%	-14.6%
INBX	Inhibrx Biosciences	1.2	-10.8%	407.0%
QBTS	D-Wave Quantum	10.0	-9.5%	246.7%
FDMT	4D Molecular Therapeutics	0.4	-9.3%	41.8%
FBYD	Falcons Beyond Global	0.6	-8.5%	109.8%
PVLA	Palvella Therapeutics	1.1	-8.1%	735.6%

Top Gainers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
LUNR	Intuitive Machines	1.9	53.2%	-9.1%
HUT	Hut 8	5.5	42.4%	156.1%
AAOI	Applied Optoelectronics	2.6	40.3%	10.3%
FBYD	Falcons Beyond Global	0.6	39.8%	109.8%
RKLB	Rocket Lab	39.8	39.1%	203.0%
DJT	Trump Media & Technology	3.9	31.9%	-58.5%
SGML	Sigma Lithium	1.5	31.9%	20.2%
ADEA	Adeia	1.9	31.0%	23.9%
TE	T1 Energy	1.1	30.7%
FOLD	Amicus Therapeutics	4.4	30.5%	50.8%

Top Losers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
NOW	ServiceNow	32.0	-80.2%	-27.2%
TPL	Texas Pacific Land	6.8	-63.8%	-18.9%
FDMT	4D Molecular Therapeutics	0.4	-31.4%	41.8%
LW	Lamb Weston	5.9	-30.1%	-35.8%
TLRY	Tilray Brands	11.2	-24.5%	-20.8%
OLMA	Olema Pharmaceuticals	2.4	-19.3%	374.6%
INSP	Inspire Medical Systems	2.8	-17.8%	-48.8%
GETY	Getty Images	0.5	-17.6%	-41.7%
TDUP	ThredUp	0.8	-16.4%	363.3%
FRMI	Fermi	5.8	-15.3%

Top Gainers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
TE	T1 Energy	1.1	161.4%
WVE	WAVE Life Sciences	2.9	147.9%	41.3%
AAOI	Applied Optoelectronics	2.6	97.5%	10.3%
LUNR	Intuitive Machines	1.9	91.5%	-9.1%
RKLB	Rocket Lab	39.8	91.5%	203.0%
VERA	Vera Therapeutics	3.4	89.4%	27.5%
PL	Planet Labs PBC	6.3	85.8%	413.1%
ANF	Abercrombie & Fitch	5.9	77.2%	-17.2%
ARWR	Arrowhead Pharmaceuticals	9.7	72.6%	271.4%
NRGV	Energy Vault	0.8	68.8%	122.8%

Top Losers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
RZLT	Rezolute	0.3	-75.4%	-50.6%
JANX	Janux Therapeutics	0.9	-51.0%	-73.6%
LENZ	LENZ Therapeutics	0.5	-42.9%	-41.5%
FRMI	Fermi	5.8	-42.5%
GOGO	Gogo	0.6	-35.0%	-43.3%
HPK	HighPeak Energy	0.5	-29.7%	-70.1%
UP	Wheels Up Experience	0.4	-29.2%	-61.8%
ORIC	ORIC Pharmaceuticals	0.6	-28.8%	2.5%
LW	Lamb Weston	5.9	-27.5%	-35.8%
ACLX	Arcellx	3.7	-27.4%	-14.6%

Peer Comparisons for Palo Alto Networks

Peers to compare with:

Financials

	PANW	FTNT	CRWD	ZS	CSCO	MSFT	Median
Name	Palo Alt.	Fortinet	CrowdStr.	Zscaler	Cisco Sy.	Microsoft
Mkt Price	188.12	80.66	478.84	229.32	78.02	486.85	208.72
Mkt Cap	127.7	60.9	120.3	36.4	308.6	3,618.8	124.0
Rev LTM	9,557	6,555	4,565	2,833	57,696	293,812	8,056
Op Inc LTM	1,265	2,033	-392	-133	12,991	135,937	1,649
FCF LTM	3,691	2,028	1,104	848	12,733	78,017	2,860
FCF 3Y Avg	3,231	1,919	1,023	654	13,879	71,302	2,575
CFO LTM	3,977	2,448	1,460	1,089	13,744	147,039	3,212
CFO 3Y Avg	3,428	2,231	1,312	845	14,736	121,384	2,830

Growth & Margins

	PANW	FTNT	CRWD	ZS	CSCO	MSFT	Median
Name	Palo Alt.	Fortinet	CrowdStr.	Zscaler	Cisco Sy.	Microsoft
Rev Chg LTM	15.3%	14.8%	22.0%	23.2%	8.9%	15.6%	15.4%
Rev Chg 3Y Avg	18.1%	17.1%	31.1%	32.9%	3.7%	13.2%	17.6%
Rev Chg Q	15.7%	14.4%	22.2%	25.5%	7.5%	18.4%	17.0%
QoQ Delta Rev Chg LTM	3.6%	3.4%	5.2%	6.0%	1.8%	4.3%	4.0%
Op Mgn LTM	13.2%	31.0%	-8.6%	-4.7%	22.5%	46.3%	17.9%
Op Mgn 3Y Avg	10.2%	27.6%	-4.0%	-7.1%	24.2%	44.6%	17.2%
QoQ Delta Op Mgn LTM	-0.2%	0.1%	0.1%	0.1%	0.4%	0.6%	0.1%
CFO/Rev LTM	41.6%	37.3%	32.0%	38.5%	23.8%	50.0%	37.9%
CFO/Rev 3Y Avg	41.1%	38.6%	35.8%	36.4%	26.1%	47.2%	37.5%
FCF/Rev LTM	38.6%	30.9%	24.2%	29.9%	22.1%	26.6%	28.2%
FCF/Rev 3Y Avg	38.8%	33.3%	28.0%	28.2%	24.6%	28.0%	28.1%

Valuation

	PANW	FTNT	CRWD	ZS	CSCO	MSFT	Median
Name	Palo Alt.	Fortinet	CrowdStr.	Zscaler	Cisco Sy.	Microsoft
Mkt Cap	127.7	60.9	120.3	36.4	308.6	3,618.8	124.0
P/S	13.4	9.3	26.4	12.8	5.3	12.3	12.6
P/EBIT	77.9	26.8	-589.5	-1,912.2	22.4	27.8	24.6
P/E	114.3	32.5	-383.1	-886.1	29.9	34.5	31.2
P/CFO	32.1	24.9	82.4	33.4	22.5	24.6	28.5
Total Yield	0.9%	3.1%	-0.3%	-0.1%	5.4%	3.6%	2.0%
Dividend Yield	0.0%	0.0%	0.0%	0.0%	2.1%	0.7%	0.0%
FCF Yield 3Y Avg	3.1%	3.5%	1.6%	2.1%	6.0%	2.3%	2.7%
D/E	0.0	0.0	0.0	0.1	0.1	0.0	0.0
Net D/E	-0.0	-0.0	-0.0	-0.0	0.0	-0.0	-0.0

Returns

	PANW	FTNT	CRWD	ZS	CSCO	MSFT	Median
Name	Palo Alt.	Fortinet	CrowdStr.	Zscaler	Cisco Sy.	Microsoft
1M Rtn	2.9%	2.3%	-2.4%	-16.6%	2.5%	3.1%	2.4%
3M Rtn	-7.4%	-5.4%	-1.1%	-20.7%	16.2%	-4.2%	-4.8%
6M Rtn	-6.7%	-22.8%	-1.3%	-25.7%	16.3%	-0.3%	-4.0%
12M Rtn	-0.1%	-16.3%	32.5%	23.3%	35.7%	12.7%	18.0%
3Y Rtn	166.3%	65.5%	369.5%	110.8%	79.4%	108.8%	109.8%
1M Excs Rtn	-1.8%	-2.4%	-7.1%	-21.3%	-2.1%	-1.5%	-2.2%
3M Excs Rtn	-10.4%	-7.6%	-3.6%	-23.5%	12.5%	-8.5%	-8.0%
6M Excs Rtn	-21.3%	-35.6%	-16.5%	-39.9%	2.4%	-14.2%	-18.9%
12M Excs Rtn	-18.4%	-32.7%	18.6%	7.4%	21.1%	-5.6%	0.9%
3Y Excs Rtn	69.8%	-24.0%	250.1%	21.4%	-1.2%	24.4%	22.9%

Comparison Analyses

	Title
0	FTNT Looks Stronger Than PANW With 47% Return Potential
1	JNPR or PANW - With 44% Return Forecast, PANW Probably Deserves Your Money
2	With 44% Gains On The Table, PANW May Outshine CSCO
3	Palo Alto Networks vs EOG Resources: Similar Market Cap; Which Stock Is A Better Bet?
4	Palo Alto Networks vs Snap: Similar Revenue; Which Stock Is A Better Bet?
5	Palo Alto Networks vs Workday: Similar Revenue; Which Stock Is A Better Bet?
6	Palo Alto Networks vs FireEye: Industry Peers; Which Stock Is A Better Bet?
7	Palo Alto Networks vs DexCom: Similar Market Cap; Which Stock Is A Better Bet?
8	Palo Alto Networks vs IDEXX Laboratories: Similar Market Cap; Which Stock Is A Better Bet?
9	Palo Alto Networks vs Twilio: Similar Market Cap; Which Stock Is A Better Bet?

FDIC Bank Data

Bank Capital

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Bank Deposits

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Bank Assets

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Bank Loans

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FDA Approved Drugs Data

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Financials

Annual
Quarterly

$ Mil \| FY: 7/31	LTM	2025	2024	2023	2022	2021	2020
Period End	10/31/2025	7/31/2025	7/31/2024	7/31/2023	7/31/2022	7/31/2021	7/31/2020
Filing Date	11/20/2025	8/29/2025	9/6/2024	9/1/2023	9/6/2022	9/3/2021	9/4/2020
Key Financials
Total Revenue	9,557	9,222	8,028	6,893	5,502	4,256	3,408
EBITDA	1,989	1,941	1,276	869	96	-47	60
Operating Income	1,265	1,243	684	387	-189	-304	-179
Net Income	1,117	1,134	2,578	440	-267	-499	-267
EPS	1.67	1.71	4.04	0.73	-0.45	-0.86	-0.46
Growth Rates
Total Revenue Growth	15.3%	14.9%	16.5%	25.3%	29.3%	24.9%	17.5%
EBITDA Growth	44.0%	52.1%	46.9%	809.0%	305.2%	-178.3%	-63.5%
Operating Income Growth	67.7%	81.7%	76.6%	305.1%	37.9%	-69.9%	-230.9%
Net Income Growth	-59.1%	-56.0%	486.2%	264.7%	46.5%	-86.9%	-226.0%
Margins
EBITDA Margin	20.8%	21.0%	15.9%	12.6%	1.7%	-1.1%	1.7%
Operating Income Margin	13.2%	13.5%	8.5%	5.6%	-3.4%	-7.1%	-5.3%
Net Income Margin	11.7%	12.3%	32.1%	6.4%	-4.9%	-11.7%	-7.8%
Cash & Debt
Total Cash	4,210	2,903	2,579	2,390	3,634	2,901	3,748
Total Debt	346	338	1,344	2,271	3,953	3,539	3,421
Net Debt / (Cash)	-3,864	-2,565	-1,234	-119	318	638	-327
Cash Flows
Net Cash from Operations	3,977	3,716	3,258	2,778	1,985	1,503	1,036
Free Cash from Operations	3,691	3,470	3,101	2,631	1,792	1,387	821
Returns to Shareholders
Dividends	0	-0	-0	-0	-0	-0	-0
Share Repurchases	-0	-0	567	273	892	1,178	1,198

$ Mil \| FY: 7/31	2026Q1	2025Q4	2025Q3	2025Q2	2025Q1	2024Q4	2024Q3	2024Q2	2024Q1	2023Q4	2023Q3	2023Q2
Period End	10/31/2025	7/31/2025	4/30/2025	1/31/2025	10/31/2024	7/31/2024	4/30/2024	1/31/2024	10/31/2023	7/31/2023	4/30/2023	1/31/2023
Filing Date	11/20/2025	8/29/2025	5/21/2025	2/14/2025	11/21/2024	9/6/2024	5/21/2024	2/21/2024	11/17/2023	9/1/2023	5/24/2023	2/22/2023
Key Financials Quarterly
Total Revenue	2,474	2,536	2,289	2,257	2,139	2,190	1,985	1,975	1,878	1,953	1,721	1,655
Ebitda	501	676	399	413	453	395	327	206	349	385	211	160
Operating Income	309	497	219	240	286	238	177	54	215	254	79	40
Net Income	334	254	262	267	351	358	279	1,747	194	228	108	84
EPS	0.49	0.38	0.39	0.41	0.54	0.55	0.43	2.73	0.32	0.37	0.17	0.14
Key Financials TTM
Total Revenue TTM	9,557	9,222	8,875	8,571	8,288	8,028	7,791	7,527	7,207	6,893	6,490	6,156
Ebitda TTM	1,989	1,941	1,660	1,588	1,381	1,276	1,266	1,150	1,104	866	570	385
Operating Income TTM	1,265	1,242	984	942	755	684	699	601	587	387	149	23
Net Income TTM	1,117	1,134	1,238	1,255	2,734	2,578	2,448	2,277	614	440	215	34
Growth Rates Quarterly
Total Revenue Growth	15.7%	15.8%	15.3%	14.3%	13.9%	12.1%	15.3%	19.3%	20.1%	26.0%	24.1%	25.7%
EBITDA Growth	10.6%	71.1%	22.0%	100.6%	29.9%	2.6%	54.9%	29.0%	216.8%	329.9%	721.4%	2714.8%
Operating Income Growth	8.0%	108.6%	23.8%	348.5%	32.9%	-6.0%	124.5%	34.3%	1315.8%	1546.1%	265.3%	154.0%
Net Income Growth	-4.8%	-29.0%	-6.0%	-84.7%	80.7%	57.1%	158.6%	1974.7%	871.0%	6800.0%	247.3%	190.1%
Margins Quarterly
EBITDA Margin	20.3%	26.6%	17.4%	18.3%	21.2%	18.0%	16.5%	10.4%	18.6%	19.7%	12.3%	9.6%
Operating Income Margin	12.5%	19.6%	9.6%	10.6%	13.4%	10.9%	8.9%	2.7%	11.5%	13.0%	4.6%	2.4%
Net Income Margin	13.5%	10.0%	11.5%	11.8%	16.4%	16.3%	14.0%	88.4%	10.3%	11.7%	6.3%	5.1%
Cash & Debt
Total Cash	4,210	2,903	3,300	3,233	3,391	2,579	2,890	3,371	3,894	2,390	3,958	3,347
Total Debt	346	338	729	897	1,025	1,344	1,532	2,184	2,222	2,271	3,947	3,954
Net Debt / (Cash)	-3,864	-2,565	-2,571	-2,336	-2,366	-1,234	-1,358	-1,186	-1,671	-119	-12	608
Cash Flows Quarterly
FCF from Operations	1,771	1,021	629	556	1,510	513	529	690	1,526	414	432	695
Cash Flows TTM
FCF from Operations TTM	3,977	3,716	3,208	3,108	3,242	3,258	3,159	3,062	3,067	2,778	2,887	2,844
Returns to Shareholders Quarterly
Dividends	0	0	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-0	-0	-0	-0	-0	-0	500	-0	67	-0	-0	250
Return on Invested Capital (ROIC) Quarterly
ROIC	50.5%	30.7%	30.4%	38.2%	59.1%	36.9%	33.4%	8.7%	38.6%	25.5%	9.7%	5.5%
Return on Invested Capital (ROIC) TTM
ROIC TTM	43.5%	31.8%	37.9%	45.2%	40.9%	26.5%	33.0%	24.5%	28.9%	10.5%	4.5%	0.3%

Segment Financials

Revenue by Segment

$ Mil	2025	2024	2023	2022	2021
Subscription	4,188	3,335	2,539	1,899	1,405
Support	2,236	1,979	1,599	1,237	939
Product	1,603	1,578	1,363	1,120	1,064
Total	8,028	6,893	5,502	4,256	3,408

Price Behavior

Price Behavior

Market Price	$188.12
Market Cap ($ Bil)	126.4
First Trading Date	07/20/2012
Distance from 52W High	-15.0%
	50 Days	200 Days
DMA Price	$201.53	$192.16
DMA Trend	indeterminate	down
Distance from DMA	-6.7%	-2.1%
	3M	1YR
Volatility	28.2%	34.9%
Downside Capture	179.01	132.86
Upside Capture	111.44	112.72
Correlation (SPY)	61.4%	63.8%

PANW Betas & Captures as of 11/30/2025

	1M	2M	3M	6M	1Y	3Y
Beta	1.46	1.42	1.38	1.12	1.16	1.19
Up Beta	1.36	1.38	1.18	1.04	1.20	1.21
Down Beta	3.17	1.41	1.53	0.77	1.02	1.37
Up Capture	-16%	94%	110%	97%	120%	141%
Bmk +ve Days	12	25	38	73	141	426
Stock +ve Days	7	20	34	66	135	414
Down Capture	200%	172%	155%	153%	118%	101%
Bmk -ve Days	7	16	24	52	107	323
Stock -ve Days	12	21	27	57	111	334

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively

Based On 1-Year Data

		Comparison of PANW With Other Asset Classes (Last 1Y)
	PANW	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	-0.3%	26.5%	18.8%	72.9%	9.0%	3.7%	-11.4%
Annualized Volatility	34.8%	27.6%	19.5%	19.2%	15.3%	17.2%	35.0%
Sharpe Ratio	0.04	0.83	0.76	2.72	0.36	0.05	-0.14
Correlation With Other Assets		64.6%	63.4%	8.7%	24.1%	39.9%	25.1%

ETFs used for asset classes: Sector ETF = XLK, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How

Based On 5-Year Data

		Comparison of PANW With Other Asset Classes (Last 5Y)
	PANW	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	28.9%	19.1%	14.8%	18.9%	11.8%	4.7%	35.5%
Annualized Volatility	40.5%	24.7%	17.1%	15.5%	18.7%	18.9%	48.9%
Sharpe Ratio	0.75	0.70	0.70	0.98	0.51	0.16	0.62
Correlation With Other Assets		53.2%	50.3%	2.7%	10.6%	27.4%	22.4%

Based On 10-Year Data

		Comparison of PANW With Other Asset Classes (Last 10Y)
	PANW	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	19.8%	22.4%	14.8%	15.1%	6.8%	5.4%	69.1%
Annualized Volatility	38.8%	24.2%	18.0%	14.8%	17.6%	20.8%	55.8%
Sharpe Ratio	0.59	0.85	0.71	0.85	0.31	0.23	0.90
Correlation With Other Assets		52.5%	49.7%	1.6%	16.4%	29.5%	15.3%

Short Interest

Short Interest: As Of Date	11282025
Short Interest: Shares Quantity	44,633,987
Short Interest: % Change Since 11152025	2.5%
Average Daily Volume	8,245,992
Days-to-Cover Short Interest	5.41
Basic Shares Quantity	679,000,000
Short % of Basic Shares	6.6%

Returns Analyses

	Title
0	Is Palo Alto Networks Stock Built to Withstand More Downside?
1	PANW YTD Stock Return Of 6.1% Outperforms MITK by 18% and Underperforms CRSR by -22%
2	Palo Alto Networks Stock Return Comparison
3	[10/12/2021] Palo Alto Networks (PANW) Stock Price Forecast: AI Forecasts PANW Stock Price To Be Around $524 In A Month (Up 3.6%)
4	Palo Alto Networks Total Shareholder Return (TSR): 25.1% in 2022 and 30.1% 3-yr returns (above peer average)
5	Palo Alto Networks (PANW) Stock Return: AI Predicts PANW Average and Excess Return After a Fall or Rise

Earnings Returns History

Expand for More

	Forward Returns
Earnings Date	1D Returns	5D Returns	21D Returns
11/19/2025	-7.4%	-7.3%	-5.2%
8/18/2025	3.1%	4.8%	15.3%
5/20/2025	-6.8%	-3.4%	2.4%
2/13/2025	-0.9%	-5.4%	-8.4%
11/20/2024	1.2%	-2.2%	-4.9%
8/19/2024	7.2%	1.1%	-4.0%
5/20/2024	-3.7%	-4.9%	-3.9%
2/20/2024	-28.4%	-14.0%	-23.0%
...
SUMMARY STATS
# Positive	15	15	14
# Negative	10	10	11
Median Positive	7.2%	10.0%	14.4%
Median Negative	-6.1%	-5.1%	-6.7%
Max Positive	18.6%	23.1%	28.6%
Max Negative	-28.4%	-20.2%	-32.3%

	Forward Returns
11/19/2025	-7.4%	-7.3%	-5.2%
8/18/2025	3.1%	4.8%	15.3%
5/20/2025	-6.8%	-3.4%	2.4%
2/13/2025	-0.9%	-5.4%	-8.4%
11/20/2024	1.2%	-2.2%	-4.9%
8/19/2024	7.2%	1.1%	-4.0%
5/20/2024	-3.7%	-4.9%	-3.9%
2/20/2024	-28.4%	-14.0%	-23.0%
11/15/2023	-5.4%	2.7%	20.0%
8/18/2023	14.8%	10.0%	12.6%
5/23/2023	7.7%	12.5%	28.6%
2/21/2023	12.5%	12.9%	14.4%
11/17/2022	7.0%	10.4%	-3.9%
8/22/2022	12.1%	10.0%	1.0%
5/19/2022	9.7%	15.1%	14.4%
2/22/2022	0.4%	21.3%	27.0%
11/18/2021	2.0%	2.5%	1.8%
8/23/2021	18.6%	23.1%	27.8%
5/20/2021	5.8%	7.2%	8.3%
2/22/2021	-1.7%	-4.4%	-15.8%
11/16/2020	7.7%	12.9%	22.7%
8/24/2020	-2.3%	-3.6%	-10.5%
5/21/2020	3.7%	2.5%	1.5%
2/24/2020	-17.0%	-20.2%	-32.3%
11/25/2019	-12.0%	-9.3%	-6.7%
SUMMARY STATS
# Positive	15	15	14
# Negative	10	10	11
Median Positive	7.2%	10.0%	14.4%
Median Negative	-6.1%	-5.1%	-6.7%
Max Positive	18.6%	23.1%	28.6%
Max Negative	-28.4%	-20.2%	-32.3%

SEC Filings

Expand for More

Report Date	Filing Date	Filing
10312025	11202025	10-Q 10/31/2025
7312025	8292025	10-K 7/31/2025
4302025	5212025	10-Q 4/30/2025
1312025	2142025	10-Q 1/31/2025
10312024	11212024	10-Q 10/31/2024
7312024	9062024	10-K 7/31/2024
4302024	5212024	10-Q 4/30/2024
1312024	2212024	10-Q 1/31/2024
10312023	11172023	10-Q 10/31/2023
7312023	9012023	10-K 7/31/2023
4302023	5242023	10-Q 4/30/2023
1312023	2222023	10-Q 1/31/2023
10312022	11182022	10-Q 10/31/2022
7312022	9062022	10-K 7/31/2022
4302022	5202022	10-Q 4/30/2022
1312022	2232022	10-Q 1/31/2022

Insider Activity

Expand for More

	Owner	Title	Filing Date	Action	Price	Shares	Transacted Value	Value of Held Shares	Form
0	Paul Josh D.	Chief Accounting Officer	10022025	Sell	202.16	700	141,512	6,564,944	Form

Industry Resources

Systems Software Resources

Software Development Times

External Quote Links

0	Y Finance	Barrons
1	TradingView	Morningstar
2	SeekingAlpha	ValueLine
3	Motley Fool	Robinhood
4	CNBC	Etrade
5	MarketWatch	Unusual Whales
6	YCharts	Perplexity Finance
7	FinViz

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Palo Alto Networks (PANW)

Market Price (12/24/2025): $188.45 | Market Cap: $128.0 BilSector: Information Technology | Industry: Systems Software

Palo Alto Networks (PANW)

Market Price (12/24/2025): $188.45Market Cap: $128.0 BilSector: Information TechnologyIndustry: Systems Software

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.

Valuation, Metrics & Events

PANW Stock

Why The Stock Moved

Qualitative Assessment

Stock Movement Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Return vs. Risk

Price Returns Compared

How Low Can It Go

In The Past

Preserve Wealth

Asset Allocation

About Palo Alto Networks (PANW)

Nikesh Arora

Chairman and Chief Executive Officer

Dipak Golechha

Chief Financial Officer

BJ Jenkins

President

Lee Klarich

Chief Product and Technology Officer

Karim Temsamani

President, Next Generation Security

Key Risks to Palo Alto Networks (PANW)

1. Intense Competition and Pricing Pressure

2. Integration Risks from Acquisitions

3. Supply Chain and Inventory Management Risks

Expected Drivers of Future Revenue Growth for Palo Alto Networks (PANW)

Interactive Breakdown

Better Bets than Palo Alto Networks (PANW)

INDUSTRY: Systems Software

Higher Rev Chg 3Y Avg | Lower P/S (Values for PANW: 18.1% | 13.4x)

Higher Rev Chg 3Y Avg | Lower P/Op Inc (Values for PANW: 18.1% | 100.9x)

Higher Rev Chg LTM (Value for PANW: 15.3%)

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

Higher Op Mgn LTM (Value for PANW: 13.2%)

Higher CFO/Rev LTM (Value for PANW: 41.6%)

Higher FCF/Rev LTM (Value for PANW: 38.6%)

Higher Total Yield (Value for PANW: 0.9%)

SECTOR: Information Technology

Higher Rev Chg 3Y Avg | Lower P/S (Values for PANW: 18.1% | 13.4x)

Higher Rev Chg 3Y Avg | Lower P/Op Inc (Values for PANW: 18.1% | 100.9x)

Higher Rev Chg LTM (Value for PANW: 15.3%)

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

Higher Op Mgn LTM (Value for PANW: 13.2%)

Higher CFO/Rev LTM (Value for PANW: 41.6%)

Higher FCF/Rev LTM (Value for PANW: 38.6%)

Higher Total Yield (Value for PANW: 0.9%)

All Other Sectors

Higher Rev Chg 3Y Avg | Lower P/S (Values for PANW: 18.1% | 13.4x)

Higher Rev Chg 3Y Avg | Lower P/Op Inc (Values for PANW: 18.1% | 100.9x)

Higher Rev Chg LTM (Value for PANW: 15.3%)

Higher Rev Chg 3Y Avg (Value for PANW: 18.1%)

Higher Op Mgn LTM (Value for PANW: 13.2%)

Higher CFO/Rev LTM (Value for PANW: 41.6%)

Higher FCF/Rev LTM (Value for PANW: 38.6%)

Higher Total Yield (Value for PANW: 0.9%)

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Market Price (12/24/2025): $188.45 | Market Cap: $128.0 Bil
Sector: Information Technology | Industry: Systems Software

Market Price (12/24/2025): $188.45
Market Cap: $128.0 Bil
Sector: Information Technology
Industry: Systems Software