PANW

Palo Alto Networks, Inc.

Fundamental data last updated:June 7, 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. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customer's network and instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, uniform resource locator filtering, laptop and mobile device protection, and firewall; and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security analytics and automation, and threat intelligence and cyber security consulting; 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. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large 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.

 


VALUATION

P/E

235.32

Market Cap ($M USD)

$185.41B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

17.48

PRICE TO BOOK

7.17

EV / EBITDA

114.29

5-Year Average P/E

Free Cash Flow Yield

2.32%

DCF Value

$115.89

Graham Number

$31.42

Price to FCF

43.18

EV to FCF

43.11

Earnings Yield

0.42%

FCF Yield

2.32%

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

$1.96T

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

6.40

Return on Invested Capital (ROIC)

2.75%

Current Ratio

0.86

Quick Ratio

0.86

Net Debt to EBITDA

-0.18

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

$324.79

Institutional Ownership %

1-Year Beta

0.94

Insider Buying % (6 Mo)

Distance to 52-Week High

11.36%

Distance to 52-Week Low

48.70%

EARNINGS SURPRISE %

7.19%

50-DAY SMA

$199.05

200-DAY SMA

$191.16

⚠️ 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.