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Palo Alto Networks (PANW) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Palo Alto Networks
NasdaqGS•Technology•Software - Infrastructure
$375.06-0.59(<0.01%)After hours
Market Cap
$306.26B
P/E
997.6x
P/S
26.7x
P/B
11.1x

Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

B

How this company scores

GoodMetricSide Score: 67/100

Strongest: Cash & Earnings Quality (25/25); weakest: Profitability (9/25).

Profitability9/25
Growth14/25
Balance Sheet & Red Flags19/25
Cash & Earnings Quality25/25
Strengths
Growing revenueRising free cash flowLow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 997.6x5y range 38.7x – 1389.3x
P/E 997.6x · above its 15-quarter median

Currently above its 15-quarter median.

P/S · 26.7x5y range 7.7x – 26.7x
P/S 26.7x · above its 20-quarter median

Currently above its 20-quarter median.

P/B · 11.1x5y range 5.3x – 431.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 49.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Share Dilution

Red Flag

Shares outstanding increased 24.2% — significant dilution, likely from stock compensation or capital raises.

Price & Volume
Market Cap $306.26B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$11.48B
7Q
Q. Revenue
$3.41B
3Q
TTM EBITDA
$1.55B
2Q
TTM Op. Income
$695.00M
2Q
Q. Op. Income
$172.00M
65%
TTM Net Income
$307.00M
2Q
Q. Net Income
$-282.00M
2Q
EPS
$-0.347
2Q
Shares Out.
$812.00M
7Q
$11.48B in TTM revenue grew 24.5% YoY, reaching $3.41B last quarter. TTM EBITDA of $1.55B and TTM operating income of $695.00M show growth is flowing through to the bottom line. TTM net income of $307.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
67.6%
8%
EBITDA Margin
15.0%
34%
Op. Margin
5.0%
74%
Net Margin
-8.3%
2Q
Op. margin of 5.0% is down 14.6% YoY — costs are rising relative to revenue. Net margin at -8.3% and gross margin of 67.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 74% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
997.6x
2Q
P/S Ratio
26.7x
2Q
P/B Ratio
11.1x
29%
At 997.6x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 26.7x and P/B of 11.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$48.46B
3Q
Cash
$2.51B
11%
Long-Term Debt
$1.77B
Book Value
$27.49B
251%
D/E Ratio
0.1
Debt/EBITDA
3.5
With $48.46B in assets and $1.77B in long-term debt, D/E is 0.1and book value is $27.49B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 0% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$1.36B
2Q
TTM Free Cash Flow
$4.11B
2Q
FCF Margin
35.8%
5%
FCF / Net Income
13.4
2Q
TTM FCF of $4.11B on $1.36B in operating cash flow. The FCF / Net Income ratio of 13.4x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.

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· below its 20-quarter median

Currently below its 20-quarter median.