Palo Alto Networks Inc financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data Palo Alto Networks Inc files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Revenue	1,762	2,274	2,900	3,408	4,256	5,502	6,893	8,027	9,221	11,480
Cost of revenue	476	645	808	1,000	1,275	1,719	1,910	2,059	2,451	3,403
Gross profit	1,279	1,629	2,091	2,409	2,981	3,783	4,983	5,968	6,770	8,077
Research and development	347	401	540	768	1,140	1,418	1,604	1,810	1,984	2,552
Selling and marketing	899	1,074	1,344	1,520	1,754	2,149	2,544	2,794	3,100	3,931
General and administrative	198	258	262	300	391	405	448	680	443	899
Operating expenses	1,445	1,733	2,145	2,588	3,285	3,972	4,596	5,284	5,527	7,382
Operating income	-166	-104	-54.1	-179	-304	-189	387	684	1,243	695
Interest expense	24.5	29.6	83.9	88.7	163	27.4	27.2	8.3	3	0
Interest income	14.7	27.1	69.8	41.4	8.5	15.6	224	318	364	374
Other non-operating income	10.2	28.5	-2.9	1.2	-0.7	-8.4	-10.3	-6	25	64
Pre-tax income	-180	-105	-74.6	-232	-465	-207	566	988	1,596	536
Income tax	22.9	16.9	7.3	35.2	33.9	59.8	127	-1,590	462	229
Net income	-203	-122	-81.9	-267	-499	-267	440	2,578	1,134	307
EBITDA	-106	-7.8	99.7	27.1	-43.7	93.8	670	968	1,586	1,550
EPS, basic	-0.37	-0.22	-0.15	-0.46	-0.87	-0.45	0.73	4.04	1.71	0.41
EPS, diluted	-0.37	-0.22	-0.15	-0.46	-0.87	-0.45	0.64	3.64	1.60	0.40
Shares, basic (weighted)	543	549	566	580	578	591	606	638	663	749
Shares, diluted (weighted)	543	549	566	580	578	591	685	708	709	764

Balance sheet

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Cash and equivalents	744	2,507	961	2,958	1,874	2,119	1,135	1,535	2,269	2,514
Short-term investments		897	1,842	790	1,027	1,516	1,255	1,044	635	557
Receivables	432	467	582	1,037	1,240	2,143	2,463	2,619	2,965	3,629
Inventory								116	113	117
Other current assets	169	268	279	138	229	209	467	557	520	807
Total current assets	1,976	4,139	3,665	5,129	4,647	6,415	6,048	6,850	7,523	8,643
Property, plant and equipment	211	273	296	348	318	358	355	361	387	523
Lease right-of-use assets			0	259	263	242	263	386	347	700
Goodwill	239	523	1,352	1,813	2,710	2,748	2,927	3,350	4,567	22,010
Intangible assets	53.7	141	281	358	499	385	315	375	763	7,017
Long-term investments		548	575	554	888	1,052	3,048	4,173	5,555	4,835
Other non-current assets	169	326	423	182	421	313	322	353	422	678
Total assets	3,438	5,949	6,592	9,065	10,242	12,254	14,501	19,991	23,576	48,460
Accounts payable	35.5	49.4	73.3	63.6	56.9	128	132	116	232	290
Accrued liabilities	79.9	125	162	257	329	399	391	507	846	838
Deferred revenue	968	1,214	1,582	2,049	2,742	3,641	4,675	5,541	6,302	7,747
Total current liabilities	1,201	2,102	2,053	2,692	5,117	8,306	7,738	7,683	7,988	9,923
Lease liabilities			0	337	313	276	279	381	338	726
Other non-current liabilities	148	230	216	90.1	97.7	108	86.1	431	887	1,285
Total liabilities	2,511	4,789	5,006	7,964	9,478	12,044	12,753	14,821	15,752	20,968
Total debt	525	1,920	1,430	3,084	3,226	3,677	1,992
Paid-in capital	1,600	1,967	2,491	2,259	2,311	1,933	3,019	3,821	5,292	24,772
Retained earnings	-837	-791	-901	-1,168	-1,667	-1,667	-1,227	1,350	2,484	2,791
Other comprehensive income	-3.4	-16.4	-3.7	10.5	-9.9	-55.6	-43.2	-1.6	48	-71
Shareholders' equity	760	1,160	1,586	1,102	635	210	1,748	5,169	7,824	27,492
Total equity	928	1,160	1,586	1,102	635	210	1,748	5,169	7,824	27,492
Total liabilities and equity	3,438	5,949	6,592	9,065	10,242	12,254	14,501	19,991	23,576	48,460
Shares outstanding	548	561	580	577	195	598	308	650	668	815

Cash flow statement

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Net income	-203	-122	-81.9	-267	-499	-267	440	2,578	1,134	307
Depreciation and amortization	59.8	96.4	154	206	260	283	282	284	343	855
Stock-based compensation	475	497	568	658	895	1,011	1,075	1,076	1,295	1,774
Deferred income tax						-3.1	12.5	-1,700	219	-19
Change in receivables	-42.1	-33.7	-109	-436	-172	-902	-320	-155	-345	-335
Change in payables	5.9	3.7	32.3	-12.8	-11.8	69.3	1	-15	107	43
Cash from operations	869	1,038	1,056	1,036	1,503	1,985	2,778	3,258	3,716	4,553
Capital expenditures	-163	-112	-131	-214	-116	-193	-146	-157	-247	-440
Acquisitions	-90.7	-374	-774	-584	-777	-37	-205	-611	-1,054	-4,663
Purchases of investments	-996	-726	-2,985	-1,181	-1,959	-2,272	-5,460	-3,551	-3,696	-3,694
Sales and maturities of investments	777	692	2,057	1,953	1,241	1,119	2,812	1,853	1,595	2,204
Cash from investing	-473	-520	-1,826	288	-1,481	-933	-2,034	-1,510	-2,205	-3,104
Share buybacks	-411	-259	-330	-1,198	-1,178	-892	-273	-567	0	-1,000
Cash from financing	-386	1,246	-774	673	-1,104	-807	-1,726	-1,343	-779	-1,202
Exchange rate effect								0	0	-3
Net change in cash	10.2	1,764	-1,544	1,997	-1,082	245	-983	405	732	244
Free cash flow	705	926	924	821	1,387	1,792	2,631	3,101	3,469	4,113
Income taxes paid	9	11.2	22	17.2	24.9	34.6	147	342	505	199

Key metrics

Worked out from the statements above. Latest values use fiscal 2026. Valuation uses the share price of $374.74 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	70.4%	Gross profit / revenue.
Operating margin	6.1%	Operating income / revenue.
EBITDA margin	13.5%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	4.7%	Pre-tax income / revenue.
Net margin	2.7%	Net income / revenue.
FCF margin	35.8%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	39.7%	Cash from operations / revenue.
Effective tax rate	42.7%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	1.7%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	0.9%	Net income / average total assets.
Return on invested capital (ROIC)	2.6%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	22.2%	Research and development expense / revenue.
Stock-based pay / revenue	15.5%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	3.8%	Capital expenditures / revenue.
D&A / revenue	7.4%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	24.5%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	18.5%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	22.0%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	19.3%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	17.5%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	22.1%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	-44.1%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	21.5%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA growth, 1y	-2.3%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	32.3%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income growth, 1y	-72.9%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	-11.3%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS growth, 1y	-75.0%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	-14.5%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow growth, 1y	22.5%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	17.9%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	24.8%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	18.6%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	16.1%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	24.3%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	251.4%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	150.5%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	112.5%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	105.5%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	49.5%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	36.5%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	7.8%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	3.7%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	5.7%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.87x	Current assets / current liabilities.
Quick ratio	0.68x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.31x	(Cash + short-term investments) / current liabilities.
Liabilities / assets	43.3%	Total liabilities / total assets.
Working capital	-$1.28B	Current assets - current liabilities.
Goodwill and intangibles / assets	59.9%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$1.54B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.32x	Revenue / average total assets.
Fixed asset turnover	25.2x	Revenue / average property, plant and equipment.
Inventory turnover	29.6x	Cost of revenue / average inventory.
Days inventory	12 days	365 x average inventory / cost of revenue.
Receivables turnover	3.48x	Revenue / average receivables.
Days sales outstanding	105 days	365 x average receivables / revenue.
Days payables	28 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	89 days	Days inventory + days sales outstanding - days payables.
FCF conversion	1,340.0%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	9.7%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$0.40	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$0.41	Net income per basic share, as reported (split-adjusted).
Revenue per share	$15.03	Revenue / diluted weighted shares.
FCF per share	$5.38	Free cash flow / diluted weighted shares.
Operating cash flow per share	$5.96	Cash from operations / diluted weighted shares.
Book value per share	$33.73	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	-$1.88	Tangible book value / shares outstanding.
Cash per share	$3.77	(Cash + short-term investments) / shares outstanding.
Buybacks / FCF	24.3%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$305.41B	Share price x shares outstanding.
Enterprise value	$302.34B	Market cap + total debt - cash - short-term investments.
P/E	995x	Market cap / net income. Only when net income is positive.
P/S	26.6x	Market cap / revenue.
P/B	11.1x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	74.3x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	67.1x	Market cap / cash from operations, when positive.
EV/Sales	26.3x	Enterprise value / revenue.
EV/EBIT	435x	Enterprise value / operating income, when both are positive.
EV/EBITDA	195x	Enterprise value / EBITDA, when both are positive.
EV/FCF	73.5x	Enterprise value / free cash flow, when both are positive.
FCF yield	1.3%	Free cash flow / market cap.
Earnings yield	0.1%	Net income / market cap (the inverse of P/E).
Shareholder yield	0.3%	(Dividends paid + share buybacks) / market cap.

What was Palo Alto Networks Inc's revenue in fiscal 2026?

Palo Alto Networks Inc reported revenue of $11.48B for fiscal 2026, 24.5% higher than the year before.

Was Palo Alto Networks Inc profitable in fiscal 2026?

Yes. Net income was $307.0M, a net margin of 2.7%.

How much free cash flow did Palo Alto Networks Inc generate in fiscal 2026?

Cash from operations of $4.55B minus capital expenditures of $440.0M left free cash flow of $4.11B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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