PANW (Palo Alto Networks, Inc.) Stock Financials & Earnings | Market Cap Arena

PANW (Palo Alto Networks, Inc.) Stock Financials & Earnings | Market Cap Arena

PANWPalo Alto Networks, Inc.

Mkt Cap$113B

Technology·Software - Infrastructure·🇺🇸 United States·NASDAQ

Revenue (TTM)$9.9B

Net Income (TTM)$1.3B

EPS (TTM)$1.80

Free Cash Flow (TTM)$4.1B

Gross Margin73.5%

Op. Margin14.4%

Net Margin13.0%

FCF Margin41.1%

P/S Ratio (TTM)11.4x

P/E Ratio (TTM)87.9x

YoY Rev Growth+15.4%

Employees—

Earnings Reports

Revenue & Profitability

Quarter	Revenue	Gross Profit	Op. Income
Q3 23	$1.7B	$1.2B	$79M
Q4 23	$2.0B	$1.4B	$254M
Q1 24	$1.9B	$1.4B	$215M
Q2 24	$2.0B	$1.5B	$54M
Q3 24	$2.0B	$1.5B	$177M
Q4 24	$2.2B	$1.6B	$238M
Q1 25	$2.1B	$1.6B	$286M
Q2 25	$2.3B	$1.7B	$240M
Q3 25	$2.3B	$1.7B	$219M
Q4 25	$2.5B	$1.9B	$497M
Q1 26	$2.5B	$1.8B	$309M
Q2 26	$2.6B	$1.9B	$400M

Revenue Breakdown

Valuation

Quarter	P/S	P/E
Q3 23	17.4x	523.4x
Q4 23	16.3x	256.3x
Q1 24	15.6x	183.6x
Q2 24	15.0x	49.5x
Q3 24	14.5x	46.0x
Q4 24	14.0x	43.7x
Q1 25	13.6x	41.2x
Q2 25	13.1x	89.8x
Q3 25	12.7x	91.0x
Q4 25	12.2x	99.4x
Q1 26	11.8x	100.9x
Q2 26	11.4x	87.9x

Operating Cash Flow

Quarter	Operating CF	Free CF
Q3 23	$432M	$401M
Q4 23	$414M	$377M
Q1 24	$1.5B	$1.5B
Q2 24	$690M	$655M
Q3 24	$529M	$492M
Q4 24	$513M	$465M
Q1 25	$1.5B	$1.5B
Q2 25	$557M	$509M
Q3 25	$629M	$560M
Q4 25	$1.0B	$1.2B
Q1 26	$1.8B	$1.7B
Q2 26	$554M	$638M

Capital Expenditures

CapEx

Quarter	CapEx
Q3 23	$31M
Q4 23	$37M
Q1 24	$37M
Q2 24	$35M
Q3 24	$37M
Q4 24	$47M
Q1 25	$44M
Q2 25	$48M
Q3 25	$68M
Q4 25	$160M
Q1 26	$84M
Q2 26	$84M

OpEx vs Revenue Growth (YoY)

Quarter	Revenue Growth	OpEx Growth
Q3 23	+24.1%	+14.5%
Q4 23	+26.0%	+10.7%
Q1 24	+20.1%	+7.4%
Q2 24	+19.3%	+19.0%
Q3 24	+15.3%	+10.1%
Q4 24	+12.1%	+14.8%
Q1 25	+13.9%	+11.4%
Q2 25	+14.3%	+5.0%
Q3 25	+15.3%	+14.5%
Q4 25	+15.8%	+4.5%
Q1 26	+15.7%	+16.8%
Q2 26	+14.9%	+8.8%

Stock-Based Compensation

Quarter	SBC ($)	% of Revenue
Q3 23	$271M	15.7%
Q4 23	$254M	13.0%
Q1 24	$271M	14.4%
Q2 24	$272M	13.8%
Q3 24	$264M	13.3%
Q4 24	$269M	12.3%
Q1 25	$294M	13.8%
Q2 25	$321M	14.2%
Q3 25	$326M	14.2%
Q4 25	$354M	14.0%
Q1 26	$0	0.0%
Q2 26	$671M	25.9%

OpEx Breakdown

Quarter	R&D	G&A	S&M
Q3 23	$414M	$114M	$640M
Q4 23	$414M	$115M	$664M
Q1 24	$410M	$120M	$661M
Q2 24	$448M	$302M	$673M
Q3 24	$457M	$119M	$719M
Q4 24	$495M	$140M	$742M
Q1 25	$481M	$98M	$720M
Q2 25	$506M	$154M	$758M
Q3 25	$495M	$164M	$793M
Q4 25	$504M	$27M	$829M
Q1 26	$528M	$179M	$820M
Q2 26	$511M	$178M	$823M

Rule of 40

Rule of 40

Quarter	Rev Growth %	EBITDA Margin %	Rule of 40
Q3 23	24.1%	12.3%	36.4
Q4 23	26.0%	19.7%	45.7
Q1 24	20.1%	18.6%	38.7
Q2 24	19.3%	10.4%	29.8
Q3 24	15.3%	16.5%	31.8
Q4 24	12.1%	17.9%	30.0
Q1 25	13.9%	21.2%	35.1
Q2 25	14.3%	18.3%	32.6
Q3 25	15.3%	17.4%	32.8
Q4 25	15.8%	26.6%	42.5
Q1 26	15.7%	20.3%	35.9
Q2 26	14.9%	24.1%	39.0

Revenue Segments

Quarter	Product	Subscription	Support
Q3 23	$388M	$838M	$495M
Q4 23	$507M	$918M	$528M
Q1 24	$341M	$988M	$549M
Q2 24	$391M	$1.0B	$557M
Q3 24	$391M	$1.0B	$548M
Q4 24	$481M	$1.1B	$582M
Q1 25	$354M	$1.2B	$593M
Q2 25	$422M	$1.2B	$603M
Q3 25	$453M	$1.2B	$602M
Q4 25	$574M	$1.3B	$647M
Q2 26	$514M	$1.4B	$676M

Revenue by Geography

Quarter	Americas	Asia Pacific	Emea
Q3 23	$1.2B	$210M	$332M
Q4 23	$1.4B	$222M	$378M
Q1 24	$1.3B	$227M	$365M
Q2 24	$1.3B	$234M	$407M
Q3 24	$1.4B	$226M	$399M
Q4 24	$1.5B	$256M	$431M
Q1 25	$1.4B	$255M	$441M
Q2 25	$1.5B	$275M	$480M
Q3 25	$1.5B	$279M	$481M
Q4 25	$1.7B	$290M	$515M
Q2 26	$1.7B	$322M	$560M

War Chest

Quarter	Cash	Short-term Investments	Total
Q3 23	$2.0B	$2.0B	$4.0B
Q4 23	$1.1B	$1.3B	$2.4B
Q1 24	$2.5B	$1.4B	$3.9B
Q2 24	$1.8B	$1.6B	$3.4B
Q3 24	$1.4B	$1.5B	$2.9B
Q4 24	$1.5B	$1.0B	$2.6B
Q1 25	$2.3B	$1.1B	$3.4B
Q2 25	$2.2B	$1.0B	$3.2B
Q3 25	$2.4B	$917M	$3.3B
Q4 25	$2.3B	$635M	$2.9B
Q1 26	$3.1B	$1.1B	$4.2B
Q2 26	$4.2B	$378M	$4.5B

Shares Outstanding

Shares Outstanding

Quarter	Shares (Diluted)	QoQ Change
Q3 23	689M	+4.0%
Q4 23	709M	+2.8%
Q1 24	700M	-1.3%
Q2 24	715M	+2.2%
Q3 24	709M	-0.8%
Q4 24	708M	-0.2%
Q1 25	709M	+0.2%
Q2 25	709M	+0.0%
Q3 25	707M	-0.2%
Q4 25	709M	+0.2%
Q1 26	709M	+0.0%
Q2 26	713M	+0.6%

Revenue Per Employee

Revenue / Employee

Year	Revenue/Employee	Employees
FY 14	$347K	2K
FY 15	$352K	3K
FY 16	$363K	4K
FY 17	$386K	5K
FY 18	$425K	5K
FY 19	$413K	7K
FY 20	$425K	8K
FY 21	$406K	10K
FY 22	$438K	13K
FY 23	$494K	14K
FY 24	$525K	15K
FY 25	$574K	16K