PANW Stock Analysis: Palo Alto Networks | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 283.669m USD | 12M Return: 72.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.23B
EPS Trend: 83.5%
Qual. Beats: -1
Rev. Trend: 99.7%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 10.5 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 U.S.-based cybersecurity provider operating globally across the Americas, Europe, the Middle East, Africa, Asia Pacific, and Japan. The company is organized around three main platforms: Strata (network security), Prisma (cloud security), and Cortex (security operations), along with threat intelligence and advisory services delivered through its Unit 42 brand. Its offerings span secure access service edge (SASE), cloud-native application protection, virtual firewalls, AI-driven security operations, and attack surface management.
The company generates revenue through a combination of product subscriptions, professional services (architecture design, implementation, firewall migration), education and certifications, and ongoing support. It distributes through channel partners and direct sales to enterprises, service providers, and government entities across industries including financial services, healthcare, energy, manufacturing, public sector, and telecommunications.
Palo Alto Networks was incorporated in 2005, is headquartered in Santa Clara, California, and has been listed on NASDAQ since 2012. The cybersecurity industry has grown as organizations face rising threats, increased digital transformation, and stricter data protection requirements, driving demand for integrated platforms that consolidate multiple security functions under a single vendor.
- Platformization strategy accelerates NGS ARR and net new customer growth
- Cortex XSIAM AI security demand drives SOC platform revenue
- Competition from CrowdStrike and Zscaler pressures firewall and SASE market share
| Net Income: 842.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -4.36 > 1.0 |
| NWC/Revenue: -12.19% < 20% (prev -9.09%; Δ -3.10% < -1%) |
| CFO/TA 0.09 > 3% & CFO 4.22b > Net Income 842.8m |
| Net Debt (-321.0m) to EBITDA (2.28b): -0.14 < 3 |
| Current Ratio: 0.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (744.0m) vs 12m ago 5.17% < -2% |
| Gross Margin: 71.94% > 18% (prev 73.56%; Δ -1.62% > 0.5%) |
| Asset Turnover: 31.07% > 50% (prev 40.34%; Δ -9.26% > 0%) |
| Interest Coverage Ratio: 3.49k > 6 (EBIT TTM 1.40b / Interest Expense TTM 400k) |
| A: -0.03 (Total Current Assets 7.71b - Total Current Liabilities 9.01b) / Total Assets 46.3b |
| B: 0.07 (Retained Earnings 3.07b / Total Assets 46.3b) |
| C: 0.04 (EBIT TTM 1.40b / Avg Total Assets 34.1b) |
| D: 1.49 (Book Value of Equity 27.7b / Total Liabilities 18.6b) |
| Altman-Z'' = 1.87 = BBB |
| DSRI: 1.07 (Receivables 3.44b/2.69b, Revenue 10.6b/8.87b) |
| GMI: 1.02 (GM 73.56% / 71.94%) |
| AQI: 1.24 (AQ_t 0.81 / AQ_t-1 0.65) |
| SGI: 1.20 (Revenue 10.6b / 8.87b) |
| TATA: -0.07 (NI 842.8m - CFO 4.22b) / TA 46.3b) |
| Beneish M = -2.67 (Cap -4..+1) = A |
As of July 04, 2026, the stock is trading at USD 348.06 with a total of 7,699,600 shares traded. Over the past week, the price has changed by +18.76%, over one month by +24.12%, over three months by +114.92% and over the past year by +72.46%.
Current recommended Stop Loss: 329.90 (which is 5.2% or 1.3 ATR below the current price).
Palo Alto Networks has received a consensus analysts rating of 4.13. Therefore, it is recommended to buy PANW.
- StrongBuy: 26
- Buy: 11
- Hold: 13
- Sell: 0
- StrongSell: 2
| Analysts Target Price | 317.3 | -8.8% |
P/E Trailing = 300.0517
P/E Forward = 86.2069
P/S = 26.7448
P/B = 10.3698
P/EG = 5.7452
Revenue TTM = 10.6b USD
EBIT TTM = 1.40b USD
EBITDA TTM = 2.28b USD
Long Term Debt = 1.19b USD (from longTermDebt, last quarter)
Short Term Debt = 160.0m USD (from shortTermDebt, last quarter)
Debt = 2.79b USD (from shortLongTermDebtTotal, last quarter) + Leases 719.0m
Net Debt = -321.0m USD (calculated: Debt 2.79b - CCE 3.11b)
Enterprise Value = 283b USD (284b + Debt 2.79b - CCE 3.11b)
Interest Coverage Ratio = 3.49k (Ebit TTM 1.40b / Interest Expense TTM 400k)
EV/FCF = 65.99x (Enterprise Value 283b / FCF TTM 4.29b)
FCF Yield = 1.52% (FCF TTM 4.29b / Enterprise Value 283b)
FCF Margin = 40.48% (FCF TTM 4.29b / Revenue TTM 10.6b)
Net Margin = 7.95% (Net Income TTM 842.8m / Revenue TTM 10.6b)
Gross Margin = 71.94% ((Revenue TTM 10.6b - Cost of Revenue TTM 2.98b) / Revenue TTM)
Gross Margin QoQ = 67.55% (prev 73.59%)
Tobins Q-Ratio = 6.12 (Enterprise Value 283b / Total Assets 46.3b)
Interest Expense / Debt = 0.01% (Interest Expense 400k / Debt 2.79b)
Taxrate = 39.66% (554.0m / 1.40b)
NOPAT = 842.9m (EBIT 1.40b * (1 - 39.66%))
Current Ratio = 0.86 (Total Current Assets 7.71b / Total Current Liabilities 9.01b)
Debt / Equity = 0.10 (Debt 2.79b / totalStockholderEquity, last quarter 27.7b)
Debt / EBITDA = -0.14 (Net Debt -321.0m / EBITDA 2.28b)
Debt / FCF = -0.07 (Net Debt -321.0m / FCF TTM 4.29b)
Total Stockholder Equity = 13.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.47% (Net Income 842.8m / Total Assets 46.3b)
RoE = 6.30% (Net Income TTM 842.8m / Total Stockholder Equity 13.4b)
RoCE = 9.58% (EBIT 1.40b / Capital Employed (Equity 13.4b + L.T.Debt 1.19b))
RoIC = 2.28% (NOPAT 842.9m / Invested Capital 36.9b)
WACC = 10.61% (E(284b)/V(286b) * Re(10.71%) + D(2.79b)/V(286b) * Rd(0.01%) * (1-Tc(0.40)))
Discount Rate = 10.71% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.94 | Cagr: 1.78%
[DCF] Terminal Value 71.03% ; FCFF base≈3.78b ; Y1≈4.33b ; Y5≈6.37b
[DCF] Fair Price = 84.47 (EV 68.5b - Net Debt -321.0m = Equity 68.8b / Shares 815.0m; r=10.61% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 83.51 | EPS CAGR: 13.24% | SUE: -4.0 | # QB: -1
Revenue Correlation: 99.72 | Revenue CAGR: 15.72% | SUE: 4.0 | # QB: 4
EPS current Quarter (2026-10-31): EPS=0.44 | Chg30d=-12.63% | Revisions=-38% | Analysts=9
EPS current Year (2026-07-31): EPS=3.77 | Chg30d=+2.21% | Revisions=+90% | GrowthEPS=+13.0% | GrowthRev=+23.9%
EPS next Year (2027-07-31): EPS=1.96 | Chg30d=-16.74% | Revisions=-31% | GrowthEPS=+44.1% | GrowthRev=+20.7%
[Analyst] Revisions Ratio: +58% (up=49, down=12)