# Palo Alto Networks, Inc (PANW)

> Palo Alto Networks sells cybersecurity software, subscriptions, firewalls, and expert services to businesses, governments, and service providers.

- Exchange: NASDAQ · Sector: Technology · Industry: Software Infrastructure
- Headquarters: Santa Clara, California
- Founded: 2005
- Employees: 21,921 (July 31, 2026)
- SEC CIK: 0001327567 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001327567))
- Full page: https://inspectstocks.com/stocks/panw
- Data as of: price 2026-09-28; newest filing used 2026-09-10; latest fiscal period ended 2026-07-31

## Grade

**A** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $11.5B | $6.9B |
| Revenue growing recently | passed | $11.5B | $9.2B |
| Free cash flow positive | passed | $4.1B |  |
| Free cash flow growing overall | passed | $4.1B | $2.6B |
| Free cash flow growing recently | passed | $4.1B | $3.5B |

Business quality (the + / − mark): 3 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 2.7% |  |
| Healthy profit margin | failed | 2.7% |  |
| Strong operating margin | failed | 6.1% |  |
| Good return on equity | failed | 1.1% |  |
| Debt under control | passed | 0.09 |  |
| Turns sales into cash | passed | 35.8% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $11.5B |
| Net income, trailing twelve months | $307M |
| Free cash flow, trailing twelve months | $4.1B |
| Net margin | 2.7% |
| Operating margin | 6.1% |
| Return on equity | 1.1% |
| Debt to equity | 0.09 |
| Diluted EPS, trailing twelve months | $0.47 |
| Share price | $392.10 |
| Market value | $320.7B |
| Price / earnings | 834.3x |
| Price / sales | 27.9x |

## What the business does

The company makes tools that inspect network traffic, protect cloud applications and employee devices, manage access permissions, and help security teams detect and respond to cyberattacks. It also sells physical and software firewalls, cloud-based security subscriptions, identity security tools, and consulting and incident-response services.

### How it makes money

- **Subscriptions** (54.4% (quarter ended April 30, 2026)) — Customers pay for ongoing access to cloud-delivered security services and software, generally under contracts lasting a year or longer.
- **Support** (25.8% (quarter ended April 30, 2026)) — Customers pay for technical support and continuing maintenance for hardware, software, and cloud products, often renewing for another contract term.
- **Products** (19.8% (quarter ended April 30, 2026)) — Customers pay for physical firewall appliances and software products, often purchasing through distributors and resellers.

### Products

- **Prisma Access** — A cloud-based service that protects employees working remotely and branch offices as they connect to company applications and the internet.
- **Next-generation firewalls** — Physical appliances and software that inspect network traffic and block threats in offices, data centers, and cloud networks.
- **Prisma AIRS** — Tools for finding and protecting artificial intelligence applications, models, agents, and data, including by checking their behavior and controlling their access.
- **Cortex XSIAM** — A security operations product that brings together security alerts and data, helps analysts investigate attacks, and automates parts of the response.
- **Cortex Cloud** — A cloud security product that helps companies find and address risks in applications and the cloud systems they run on.
- **Idira identity security** — Tools for controlling and reviewing access for employees, administrators, service accounts, and artificial intelligence agents.

### Customers

- Businesses in industries including financial services, healthcare, manufacturing, energy, education, internet and media, and telecommunications; they buy security products and services directly or through channel partners.
- Government entities; they buy security products and services directly or through channel partners.
- Service providers; they buy security products and services for their own use or to support services they provide to customers.
- Many customers buy through distributors and resellers; some software firewalls and cloud firewall services are also sold through cloud marketplaces.

### Competitors

- Cisco Systems, Inc. (CSCO) — Network security products, including firewalls and tools for securing users and connections.
- Microsoft Corporation (MSFT) — Security features bundled with its software and cloud services, including tools for protecting devices, identities, and cloud workloads.
- Fortinet, Inc. (FTNT) — Network security products, including firewalls and related security services.
- CrowdStrike Holdings, Inc. (CRWD) — Security products for protecting devices and detecting and responding to cyberattacks.
- Check Point Software Technologies Ltd. (CHKP) — Network security products and services, including firewalls.
- Zscaler, Inc. (ZS) — Cloud-delivered security for users accessing company applications and networks.

### What it depends on

- The company relies on distributors, resellers, and other channel partners to sell and deliver a substantial portion of its products and subscriptions. Two distributors together accounted for 30% of revenue (fiscal 2026, high).
- It outsources hardware manufacturing to manufacturing partners, including Flex, and relies on component suppliers; supply or price changes can affect its ability to ship hardware.
- Cloud-based products depend on data centers operated by third-party cloud providers.
- A large share of revenue comes from subscriptions and support that customers renew, so changes in sales or renewals affect revenue over time.

### What could go wrong

- A significant security incident, or a flaw that lets an attack through a Palo Alto Networks product, could harm customers and the company's reputation and business.
- If channel partners do not sell or distribute products effectively, sales could be affected; two distributors together accounted for 30% of revenue (fiscal 2026, high).
- The company has recently added major businesses through acquisitions, including CyberArk and Chronosphere; integrating acquired teams and products could take management attention and fail to deliver the expected benefits.

## More on this company

- [Overview](https://inspectstocks.com/stocks/panw)
- [Financial statements](https://inspectstocks.com/stocks/panw/financials)
- [Competitors](https://inspectstocks.com/stocks/panw/peers)
- [Earnings](https://inspectstocks.com/stocks/panw/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.