Stock · PANW · Technology
United States · Large Cap · listed since 2012 · Revenue 12 mo. $11.5B
Price as of 11/06/2026
Summary
47.0 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €3.7B (2026), it supports €41B. The remaining €198.8B of the market value assume it grows 24.6% a year for 10 years and not at all afterwards.
Required FCF growth per year
24.6%
no growth afterwards
Price to operating cash flow 52.7×, above its usual range.
Middle half of 20 quarters: 29.6× to 38.9×, median 34.3×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2026 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 07/31/2026, filed 09/10/2026. Open the report at the SEC
Prisma Access is a cloud-delivered security product that helps organizations secure remote networks and mobile users with AI-driven security.
Prisma Access is a cloud-delivered security offering that helps organizations deliver consistent AI-driven security to remote networks and mobile users.The firewalls come as hardware, as containerized CN-Series and as virtual VM-Series versions, available on all major cloud hosting providers.
Our firewalls come in hardware form factors, containerized form factors, called CN-Series, as well as virtual form factors, called VM-Series, available on all major cloud hosting service providers.Subscription and support revenue makes up a significant share of revenue: 80% of total revenue in fiscal 2026, 81% in fiscal 2025 and 80% in fiscal 2024.
Subscription and support revenue accounts for a significant portion of our revenue, comprising 80% of total revenue in fiscal 2026, 81% in fiscal 2025, and 80% in fiscal 2024.Cortex XSIAM automates data integration, analysis and triage in order to respond to most alerts, so analysts can focus on incidents that need human intervention.
Cortex XSIAM automates data integration, analysis, and triage to respond to most alerts, enabling analysts to focus on only the incidents that require human intervention.The company offers Standard, Premium and Platinum support to end customers and channel partners.
We offer Standard Support, Premium Support, and Platinum Support to our end-customers and channel partners.The company's end customers are enterprises, service providers and government entities.
Our end-customers consist of enterprises, service providers, and government entities.A substantial part of sales to end customers goes through partners. The company sells to distributors, who sell to resellers, who sell to end customers.
A substantial portion of our sales to end-customers are through our channel partners utilizing a two-tier, indirect fulfillment model whereby we sell to our distributors, which, in turn, sell to our resellers, which then sell to our end-customers.End customers operate in many industries, including education, energy, financial services, healthcare, manufacturing and telecommunications.
Our end-customers operate in a variety of industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications.The company operates in an intensely competitive enterprise security industry marked by constant change and innovation.
We operate in the intensely competitive enterprise security industry that is characterized by constant change and innovation.Large companies that include security or observability features in their products are named as competitors, including Alphabet, Cisco and Microsoft.
large companies that incorporate security or observability features in their products, such as Alphabet Inc., Cisco Systems, Inc., and Microsoft CorporationExisting end customers have no contractual duty to renew after the initial period. They may renew on shorter terms, on terms that are less economically beneficial to the company, or not at all.
Existing end-customers have no contractual obligation to renew their subscription and support contracts after their initial contract period and may renew for shorter contract terms or terms that are less economically beneficial to us, or not at all.In fiscal 2026, two distributors each accounted for 10% or more of total revenue, and together they accounted for 30%.
For fiscal 2026, two distributors individually represented 10% or more of our total revenue and in the aggregate represented 30% of our total revenue.Major public cloud providers increasingly offer built-in security, identity and observability features that compete with the company's products.
The major public cloud infrastructure providers increasingly offer native security, identity, and observability capabilities that compete with our products and subscriptions.The rise of AI agents as a new identity type brings both opportunities and risks that could affect the company's identity security products.
The emergence of AI agents as a new class of identity presents both opportunities and risks that could impact our identity security offerings.Many of the company's employees in Israel must perform annual reserve duty in the Israeli military and can be called to active duty in emergencies, which has happened because of regional hostilities.
Many of our employees in Israel are obligated to perform annual reserve duty in the Israeli military and are subject to being called for active duty under emergency circumstances, which has occurred as a result of regional hostilities.Since the last quarter
Q2 → Q3 2026
2 more unchanged: FCF margin, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 1.12% | 14.60% | Rank 13 |
| Return on capital (Greenblatt) | 56.83% | 29.77% | Rank 69 |
| EBIT margin | 6.05% | 17.40% | Rank 20 |
| FCF margin | 35.83% | 18.54% | Rank 91 |
| Gross margin | 70.36% | 48.47% | Rank 77 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 24.49% | 12.70% | Rank 78 |
| Earnings growth, 3 years per year | −14.47% | 9.54% | Rank 14 |
| Earnings growth, 5 years per yeardoes not count towards the rank | – | 14.07% | |
| Sustainable growth (ROE × retained earnings) | 3.83% | 2.87% | Rank 59 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 0.13% | 2.64% | Rank 12 |
| FCF yield | 1.54% | 3.06% | Rank 27 |
| EV/saleslower is better | 23.22 | 5.18 | Rank 5 |
| EV/EBITlower is better | 383.63 | 26.24 | Rank 3 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | 38.87% | −0.59% | Rank 84 |
| Share price, 6 months | 51.46% | −4.46% | Rank 97 |
| Share price, 3 months | −8.62% | −5.84% | Rank 47 |
| Distance from 52-week high | −25.26% | −33.23% | Rank 63 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | −3.17% | 1.65% | Rank 79 |
| Change in share countlower is better | 7.71% | −0.17% | Rank 6 |
| Dividend streak in years | – | 8 | Rank 18 |
| Price reaction to results, market-adjusted | −9.75% | −1.57% | Rank 13 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 56.73% | 53.98% | Rank 58 |
| Net debt/EBITDAlower is better | −1.07 | −0.20 | Rank 73 |
| Debt to equitylower is better | 0.09 | 0.33 | Rank 75 |
| Volatility, 1 yearlower is better | 50.13% | 50.37% | Rank 51 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt |
|---|---|---|---|---|---|
| 2017 | 1.8 | −9.4% | $705.1M | 544M | −$219.6M |
| 2018 | 2.3 | −4.6% | $925.0M | 550M | −$586.8M |
| 2019 | 2.9 | −1.9% | $924.4M | 567M | $468.6M |
| 2020 | 3.4 | −5.3% | $821.3M | 581M | $462.7M |
| 2021 | 4.3 | −7.2% | $1.4B | 578M | $1.7B |
| 2022 | 5.5 | −3.4% | $1.8B | 591M | $1.8B |
| 2023 | 6.9 | 5.6% | $2.6B | 685M | $1.1B |
| 2024 | 8.0 | 8.5% | $3.1B | 708M | −$136.5M |
| 2025 | 9.2 | 13.5% | $3.5B | 709M | −$1.9B |
| 2026 | 11.5 | 6.1% | $4.1B | 764M | −$14.0M |
4 of 7 StockScorer Score rules met · How the score is built
Palo Alto Networks Inc mainly meets criteria in the Momentum category. Result from 18 strategies checked.
Palo Alto Networks Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
4 of 7 rules met
7 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Palo Alto Networks Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 781.0 | 35.1 |
| P/B ratio | 8.7 | 5.5 |
| Return on equity (ROE) | 1.1% | 14.6% |
| Equity ratio | 56.7% | 54.0% |
| Debt-to-equity (D/E) | 0.09 | 0.33 |
| Dividend yield | 0.0% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| PANW | Palo Alto Networks Incthis page | |
| CRWD | Crowdstrike Holdings Inc | Low4.5 |
| ORCL | Oracle Corporation | Low3.6 |
| PLTR | Palantir Technologies Inc. | Low4.5 |
| FTNT | Fortinet Inc | locked |
| NET | Cloudflare Inc | locked |
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