PANW

Palo Alto Networks, Inc.

Fundamental data last updated:July 22, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/17/2026

Business Summary

Palo Alto Networks, Inc. is a global leader in providing advanced cybersecurity solutions. The company's core product line includes both hardware and software-based firewalls. It also offers Panorama, a sophisticated security management platform designed for centralized control of these firewall deployments, whether they are physical appliances, virtual instances, or situated in public or private cloud environments. Additionally, the firm provides virtual system upgrades to enhance the capacity of its physical firewall units. Complementing its core products, Palo Alto Networks delivers an extensive range of subscription services. These encompass robust threat prevention, protection against malware and advanced persistent threats, URL filtering, and security for both laptop and mobile devices. Further specialized subscriptions include DNS security, Internet of Things (IoT) security, SaaS security (via API and inline methods), threat intelligence, and data loss prevention. Beyond its product and subscription offerings, the company extends various expert services, such as cloud security, secure access solutions, security analytics and automation tools, and specialized cybersecurity consulting, often integrated with threat intelligence. Its professional services cover critical areas like architectural design and planning, system implementation, configuration, and seamless firewall migration. Educational resources, including certifications and both online and in-classroom training, are also available, alongside comprehensive support services. Palo Alto Networks distributes its security solutions both directly and through an extensive network of channel partners. Its diverse clientele primarily comprises medium to large-scale enterprises, service providers, and governmental organizations across a wide array of industries. These sectors include education, energy, financial services, healthcare, internet and media, manufacturing, the broader public sector, and telecommunications. Established in 2005, Palo Alto Networks maintains its corporate headquarters in Santa Clara, California.

 


VALUATION

P/E

309.25

Market Cap ($M USD)

$243.66B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

22.97

PRICE TO BOOK

9.42

EV / EBITDA

106.80

5-Year Average P/E

Free Cash Flow Yield

1.76%

DCF Value

$122.22

Graham Number

$31.42

Price to FCF

56.75

EV to FCF

56.68

Earnings Yield

0.32%

FCF Yield

1.76%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.16

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$1.90T

Return on Equity (ROE)

6.30%

FREE CASH FLOW

Operating Margin

9.65%

Debt-to-Equity

0.04

Piotroski F-Score

4

Altman Z-Score

8.04

Return on Invested Capital (ROIC)

2.75%

Current Ratio

0.86

Quick Ratio

0.86

Net Debt to EBITDA

-0.13

Interest Coverage

2558.00

Gross Profit margin

71.94%

FCF PER SHARE

$5.89

REVENUE PER SHARE

$14.55

Gainseekers Quantitative Analysis

Summary

The market has priced Palo Alto Networks with a staggering P/E ratio of 113.9, suggesting sky-high growth expectations. However, the stock’s recent pricing has extended well above its DCF value of $151.39 and Graham Number of $23.68, indicating a potential overvaluation. Despite this, the Altman Z-score of 6.28 signals robust financial health, reducing bankruptcy risk. The absence of a forward P/E and a meager earnings yield of 0.88% further complicate the growth narrative, leaving investors to question the sustainability of its valuation.

AI Exposure / Tech Reliance

As a leader in the Software - Infrastructure industry, Palo Alto Networks is strategically positioned to capitalize on AI and tech advancements. Its focus on cybersecurity solutions aligns perfectly with the increasing demand for robust digital protection. This positioning ensures resilience and adaptability in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Palo Alto Networks offers compelling strengths. With a solid ROIC of 8.4% and a Piotroski F-Score of 6, the company demonstrates efficient capital allocation and operational health. Its impressive gross profit margin of 73.5% underscores strong pricing power, while a positive FCF yield of 2.84% highlights its ability to generate cash. These metrics paint a picture of a company with both growth potential and financial discipline.

The Bear Case

Despite its strengths, the stock's valuation metrics raise red flags. A Price/Book ratio of 15.54 and Price/Sales of 14.47 suggest an overextended valuation, especially when trading near its 52-week high. The EV to EBITDA of 63.31 further emphasizes this overvaluation, making it a risky bet for those wary of paying a premium. Additionally, the zero dividend yield offers no immediate income, challenging its appeal to income-focused investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$329.69

Institutional Ownership %

1-Year Beta

0.91

Insider Buying % (6 Mo)

Distance to 52-Week High

2.98%

Distance to 52-Week Low

60.96%

EARNINGS SURPRISE %

7.19%

50-DAY SMA

$254.97

200-DAY SMA

$202.25

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.