PANW Stock Analysis: Palo Alto Networks | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 329.850m USD | 12M Return: 94.6% | US6974351057 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.23B
EPS Trend: 45.7%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 5
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Palo Alto Networks, Inc. is a global cybersecurity provider operating across the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company delivers a broad portfolio of security products and platforms, including the Prisma suite (such as Prisma Access and Prisma AIRS), Strata Cloud Manager, VM-Series and CN-Series virtual firewalls, and the Cortex security operations platform featuring XSIAM, XDR, XSOAR, and Xpanse. It also offers Unit 42 threat intelligence and advisory services, subscription-based security features, and professional, education, and support services.
The company sells through channel partners and directly to enterprises, service providers, and government entities across industries including education, energy, financial services, healthcare, manufacturing, and telecommunications. It is classified within the Systems Software sub-industry of the Information Technology sector and is headquartered in Santa Clara, California.
- Cortex XSIAM platform revenue accelerates platformization strategy
- Next-gen security ARR growth drives margin expansion
- Federal government demand boosts cybersecurity contract wins
- Competition from CrowdStrike pressures firewall market share
- Capital return program supports buybacks as free cash flow scales
| Net Income: 307.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -5.88 > 1.0 |
| NWC/Revenue: -11.15% < 20% (prev -9.59%; Δ -1.56% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.55b > Net Income 307.0m |
| Net Debt (155.0m) to EBITDA (1.39b): 0.11 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (764.0m) vs 12m ago 7.76% < -2% |
| Gross Margin: 70.36% > 18% (prev 73.42%; Δ -3.06% > 0.5%) |
| Asset Turnover: 31.87% > 50% (prev 39.11%; Δ -7.24% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: -0.03 (Total Current Assets 8.64b - Total Current Liabilities 9.92b) / Total Assets 48.5b |
| B: 0.06 (Retained Earnings 2.79b / Total Assets 48.5b) |
| C: 0.01 (EBIT TTM 536.0m / Avg Total Assets 36.0b) |
| D: 1.31 (Book Value of Equity 27.5b / Total Liabilities 21.0b) |
| Altman-Z'' = 1.49 = BB |
| DSRI: 0.92 (Receivables 4.22b/3.68b, Revenue 11.5b/9.22b) |
| GMI: 1.04 (GM 73.42% / 70.36%) |
| AQI: 1.19 (AQ_t 0.80 / AQ_t-1 0.67) |
| SGI: 1.24 (Revenue 11.5b / 9.22b) |
| TATA: -0.09 (NI 307.0m - CFO 4.55b) / TA 48.5b) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of October 11, 2026, the stock is trading at USD 418.78 with a total of 3,832,323 shares traded. Over the past week, the price has changed by +3.85%, over one month by +24.97%, over three months by +23.79% and over the past year by +94.63%.
Current recommended Stop Loss: 374.00 (which is 10.7% or 2.6 ATR below the current price).
Palo Alto Networks has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy PANW.
- StrongBuy: 32
- Buy: 10
- Hold: 11
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 396.9 | -5.2% |
P/E Trailing = 1008.1
P/E Forward = 94.3396
P/S = 28.7326
P/B = 11.7023
P/EG = 2.0083
Revenue TTM = 11.5b USD
EBIT TTM = 536.0m USD
EBITDA TTM = 1.39b USD
Long Term Debt = 1.77b USD (from longTermDebt, last quarter)
Short Term Debt = 160.0m USD (from shortTermDebt, two quarters ago)
Debt = 3.23b USD (from shortLongTermDebtTotal, last quarter) + Leases 726.0m
Net Debt = 155.0m USD (calculated: Debt 3.23b - CCE 3.07b)
Enterprise Value = 330b USD (330b + Debt 3.23b - CCE 3.07b)
Interest Coverage Ratio = unknown (Ebit TTM 536.0m / Interest Expense TTM 0.0)
EV/FCF = 79.87x (Enterprise Value 330b / FCF TTM 4.13b)
FCF Yield = 1.25% (FCF TTM 4.13b / Enterprise Value 330b)
FCF Margin = 35.99% (FCF TTM 4.13b / Revenue TTM 11.5b)
Net Margin = 2.67% (Net Income TTM 307.0m / Revenue TTM 11.5b)
Gross Margin = 70.36% ((Revenue TTM 11.5b - Cost of Revenue TTM 3.40b) / Revenue TTM)
Gross Margin QoQ = 67.57% (prev 67.55%)
Tobins Q-Ratio = 6.81 (Enterprise Value 330b / Total Assets 48.5b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 3.23b)
Taxrate = 42.72% (229.0m / 536.0m)
NOPAT = 307.0m (EBIT 536.0m * (1 - 42.72%))
Current Ratio = 0.87 (Total Current Assets 8.64b / Total Current Liabilities 9.92b)
Debt / Equity = 0.12 (Debt 3.23b / totalStockholderEquity, last quarter 27.5b)
Debt / EBITDA = 0.11 (Net Debt 155.0m / EBITDA 1.39b)
Debt / FCF = 0.04 (Net Debt 155.0m / FCF TTM 4.13b)
Total Stockholder Equity = 18.3b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.85% (Net Income 307.0m / Total Assets 48.5b)
RoE = 1.68% (Net Income TTM 307.0m / Total Stockholder Equity 18.3b)
RoCE = 2.67% (EBIT 536.0m / Capital Employed (Equity 18.3b + L.T.Debt 1.77b))
RoIC = 0.81% (NOPAT 307.0m / Invested Capital 38.0b)
WACC = 10.99% (E(330b)/V(333b) * Re(11.10%) + D(3.23b)/V(333b) * Rd(0.0%) * (1-Tc(0.43)))
Discount Rate = 11.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 72.16 | Cagr: 3.36%
[DCF] Terminal Value 69.92% ; FCFF base≈3.84b ; Y1≈4.40b ; Y5≈6.47b
[DCF] Fair Price = 80.93 (EV 66.4b - Net Debt 155.0m = Equity 66.2b / Shares 818.0m; r=10.99% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 45.70 | EPS CAGR: 3.73% | SUE: 0.29 | # QB: 0
Revenue Correlation: 99.02 | Revenue CAGR: 16.80% | SUE: 3.49 | # QB: 5
EPS current Quarter (2026-10-31): EPS=0.97 | Chg30d=+0.11% | Revisions=+71% | Analysts=45
EPS next Quarter (2027-01-31): EPS=0.43 | Chg30d=-5.57% | Revisions=+0% | Analysts=16
EPS current Year (2027-07-31): EPS=4.19 | Chg30d=-0.25% | Revisions=+53% | GrowthEPS=+9.1% | GrowthRev=+23.5%
EPS next Year (2028-07-31): EPS=2.21 | Chg30d=-1.24% | Revisions=+0% | GrowthEPS=+40.2% | GrowthRev=+14.5%
[Analyst] Revisions Ratio: +55% (up=73, down=20)