Palo Alto Networks Inc (PANW)
Information Technology · Systems Software · US stock · S&P 500 component
$354.92
▲ +7.67 (2.21%)
Fair valueFair
$317 −10.8% to fair value
$158fair band $269–$384$475
Day's range
$352.24 – $366.23
52-week range
$139.57 – $432.33
Red flags⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution⚠ Heavy dilution
About Palo Alto Networks Inc
Palo Alto Networks is a cybersecurity company known for its network firewalls. Its platforms cover network security, cloud security and security operations, using tools that detect and respond to threats across a customer's systems. Customers include large enterprises, service providers, government bodies and smaller organisations. The company supplies both hardware firewalls and software and cloud services that customers can combine.
Subscriptions and support for its security platforms account for most of the revenue, with a smaller share from hardware products. Revenue was $11.5 billion over the last twelve months and has grown at 18.5% a year across the last three years. The operating margin is 6.1%, and the business earns 2% on the capital invested in it. No dividend is paid. A net debt measure is not available on the site for this company. On the site's X-Ray Score it receives 33 out of 100.
Price chart
52-wk range $139.57 – $432.33Volume 7,313,452Daily, split-adjusted
Vitals
Market cap$271.2B
52-week range$139.57 – $432.33
Volume (last day)7,313,452
P/E (TTM)862.7
EBIT / EV yield0.3%
Free-cash-flow yield1.5%
Dividend yieldNo dividend
Revenue (TTM)$11.5B
Net income (TTM)$307M
Operating margin6.1%
Return on capital1.9%
Debt incl. leasesData missing
Cash & securities$3.1B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$317middle half of models $304 – $312
Fair
−10.8% to fair value
Average of the 9 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $355
Undervalued < $269Fair $269 – $384Overvalued > $384
P/E multiple
$308
P/B multiple · not used
$1,062
P/S multiple
$293
EV/EBITDA multiple
$304
EV/EBIT multiple
$273
EV/revenue multiple
$308
10-year DCF, EBITDA exit
$312
5-year DCF, EBITDA exit
$372
10-year DCF, revenue exit
$312
5-year DCF, revenue exit
$368
10-year DCF, growth exit · not used
$21
5-year DCF, growth exit · not used
$18
Earnings power value · not used
$17
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
24/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield0.3%
Free-cash-flow yield1.5%
Fair value vs price0.9×
Growth
Fair
60/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)18.5%
EPS growth (3y)-14.5%
Growth consistency100%
Profitability
Weak
25/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital1.9%
Operating margin6.1%
Gross profitability16.7%
Financial health
Weak
27/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score3 / 9
Interest coverNo interest cost
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+15.3%
Apr '25
+15.9%
Jul '25
+15.7%
Oct '25
+14.9%
Jan '26
+31.1%
Apr '26
+34.5%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $3.4B.
Compare with peers
MSFT Microsoft Corp61 FTNT Fortinet, Inc.59 GEN Gen Digital Inc.59 NOW ServiceNow, Inc.48Other Systems Software companies by X-Ray Score.
SWOT analysis: Palo Alto Networks Inc
Strengthsinside the company
- Revenue has grown 18.5% a year over three years (median 15.8% for industry peers).
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Return on invested capital is only 1.9% (median 6.5% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 6.1% is thin against 21.9% for industry peers.
- Earnings per share have declined 14.5% a year over three years.
- Passes only 3 of the 9 Piotroski tests, which shows weak or worsening financial trends.
Opportunitiesvaluation and setting
- Revenue growth picked up to 24.5% last year from 18.5% a year over three years.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Trades at 883.3x earnings, 1,748% above the 47.8x median of industry peers, so the price already assumes better results.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our checks raised: Heavy dilution; Heavy dilution.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare PANW with peers and sector
Medians of 6 Systems Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): MSFT 61, CRWD 33, NOW 48, FTNT 59, TWLO 43, GEN 59.
| Metric | PANW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 33 | 54 | 50 |
| Valuation | 24 | 47 | 52 |
| Growth | 60 | 66 | 54 |
| Profitability | 25 | 44 | 50 |
| Financial health | 27 | 50 | 50 |
| Dividends | – | – | 50 |
Sector leaders: highest X-Ray Score in Information Technology
PANW ranks #69 of 75 in Information Technology and #7 of 7 in Systems Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for PANW
Each factor is rated by where PANW stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 2 Average · 12 Bad of 22
Growth: 2 · 0 · 1
Profitability: 1 · 0 · 4
Financial strength: 1 · 0 · 2
Valuation: 0 · 1 · 4
Cash flow: 3 · 1 · 0
Efficiency: 1 · 0 · 1
| Factor | PANW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +18.5% | Good beats 80% | +9.7% | – | – |
| Revenue growth, last year | +24.5% | Good beats 78% | +13.7% | +24.5% | ≈ In line |
| EPS growth, 3 years a year | −14.5% | Bad beats 13% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 70.4% | Good beats 73% | 57.8% | 72.3% | ≈ In line |
| Operating margin | 6.1% | Bad beats 11% | 20.3% | 6.1% | ≈ In line |
| Net margin | 2.7% | Bad beats 7% | 17.8% | 6.4% | ▼ Worse |
| Return on invested capital | 1.9% | Bad beats 5% | 19.4% | – | – |
| Return on equity | 1.1% | Bad beats 5% | 21.0% | 14.5% | ▼ Worse |
| Financial strength | |||||
| Interest cover | 50.0x | Good beats 75% | 23.0x | 32.1x | ▲ Better |
| Current ratio | 0.87 | Bad beats 15% | 1.57 | 0.87 | ≈ In line |
| Piotroski F-score | 3 / 9 | Bad beats 3% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 883.3x | Bad beats 2% | 33.6x | 151.6x | ▼ Worse |
| Price / book | 9.9x | Average beats 42% | 8.3x | 22.2x | ▲ Better |
| Price / sales | 23.6x | Bad beats 5% | 6.9x | 13.3x | ▼ Worse |
| EV / EBITDA | 173.5x | Bad beats 3% | 24.7x | – | – |
| Free cash flow yield | 1.5% | Bad beats 18% | 3.4% | 2.8% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 35.8% | Good beats 83% | 22.3% | 37.6% | ≈ In line |
| Cash from operations / net income | 14.83 | Good beats 98% | 1.39 | 4.80 | ▲ Better |
| Free cash flow growth, 3 years a year | +16.1% | Average beats 52% | +15.4% | – | – |
| Accruals (lower is better) | −8.8% | Good beats 78% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 29.1x | Good beats 97% | 3.9x | 21.7x | ▲ Better |
| Days sales outstanding | 115 days | Bad beats 1% | 63 days | 119 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 4 Good · ● 2 Average · ● 9 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 34/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $5.5B | $6.9B | $8.0B | $9.2B | $11.5B |
| Operating income | −$189M | $387M | $684M | $1.2B | $695M |
| Net income | −$267M | $440M | $2.6B | $1.1B | $307M |
| Operating cash flow | $2.0B | $2.8B | $3.3B | $3.7B | $4.6B |
| Operating margin | -3.4% | 5.6% | 8.5% | 13.5% | 6.1% |
| Free cash flow | $1.8B | $2.6B | $3.1B | $3.5B | $4.1B |
| Diluted EPS | $-0.90 | $0.64 | $3.64 | $1.60 | $0.40 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
4 bullish · 4 neutral · 8 bearish
Weekly
Strongly bullish
9 bullish · 1 neutral · 2 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 369.6 | Bearish |
| EMA 10 | 363.7 | Bearish |
| SMA 20 | 384.0 | Bearish |
| EMA 20 | 372.3 | Bearish |
| SMA 50 | 370.7 | Bearish |
| EMA 50 | 366.5 | Bearish |
| SMA 100 | 346.5 | Bullish |
| EMA 100 | 338.7 | Bullish |
| SMA 200 | 264.0 | Bullish |
| EMA 200 | 293.8 | Bullish |
Oscillators (daily)
| RSI (14) | 43.31 | Neutral |
| MACD (12, 26) | -6.51 | Bearish |
| Momentum (12) | -15.48 | Bearish |
| Stochastic %K (14) | 20.67 | Neutral |
| Williams %R (14) | -79.33 | Neutral |
| CCI (20) | -86.48 | Neutral |
Pivot points (classic, last session)
S3 335.4 | S2 343.8 | S1 349.4 | Pivot 357.8 | R1 363.4 | R2 371.8 | R3 377.3 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold PANW
| ETF | Share of the fund |
|---|---|
| IGV iShares Expanded Tech-Software Sector | 10.37% |
| CIBR First Trust NASDAQ Cybersecurity | 9.62% |
| BUG Global X Cybersecurity | 7.00% |
| AIPI REX AI Equity Premium Income | 3.91% |
| JTEK JPMorgan U.S. Tech Leaders | 3.62% |
| IVES Dan IVES Wedbush AI Revolution | 3.47% |
| TRFK Pacer Data and Digital Revolution | 3.42% |
| WCLD WisdomTree Cloud Computing | 3.04% |
The eight funds with the largest weight in PANW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
PANW stock splits
PANW has split its stock 2 times since 2022. The latest was a 2-for-1 split on 16 Dec 2024.
Full PANW stock split history →PANW SEC filings
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Other events
8-KSEC EDGAR
Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.