Palo Alto Networks, Inc.
- Open
- 338.48
- Day high
- 340.13
- Day low
- 323.85
- Prev close
- 338.31
- Volume
- 4.6M
- Mkt cap
- $265.4B
- P/E (TTM)
- 273.3
- EPS (TTM)
- $1.19
- P/B
- 9.6
- P/S
- 25.0
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$27.2M over the last 3 months (0 open-market buys, 35 sales)
- 🏛Institutions accumulating (13F)
Palo Alto Networks, Inc. (PANW) is a Technology company listed on NASDAQ. The stock is up 76% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 35 sales (SEC Form 4). Drillr has 6 published research articles covering PANW.
Palo Alto Networks, Inc. (PANW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 31 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PANW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 2, 2026 | $0.79 | $0.85 | +7.2% | $3.0B | +2.0% |
| Feb 17, 2026 | $0.94 | $1.03 | +9.7% | $2.6B | +0.4% |
| Nov 19, 2025 | $0.89 | $0.93 | +4.4% | $2.5B | +0.5% |
| Aug 18, 2025 | $0.89 | $0.95 | +7.3% | $2.5B | +1.4% |
| May 20, 2025 | $0.77 | $0.80 | +3.6% | $2.3B | +0.4% |
| Feb 13, 2025 | $0.78 | $0.81 | +4.0% | $2.3B | +0.7% |
| Nov 20, 2024 | $1.48 | $0.78 | -47.3% | $2.1B | +0.9% |
| Aug 19, 2024 | $1.41 | $0.75 | -46.8% | $2.2B | +1.3% |
| May 20, 2024 | $1.27 | $0.66 | -48.0% | $2.0B | +0.6% |
| Feb 20, 2024 | $1.30 | $0.73 | -43.8% | $2.0B | +0.2% |
| Nov 15, 2023 | $0.58 | $0.69 | +19.0% | $1.9B | +1.9% |
| Aug 18, 2023 | $0.64 | $0.72 | +12.5% | $2.0B | -0.2% |
PANW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | Thorning-Schmidt Helledirector | Sell | 700 | $346.85 |
| Jul 1, 2026 | Bawa Aparnadirector | Sell | 305 | $328.14 |
| Jul 1, 2026 | Bawa Aparnadirector | Sell | 290 | $348.74 |
| Jul 1, 2026 | Paul Josh D.officer: Chief Accounting Officer | Tax | 1,092 | $341.02 |
| Jul 1, 2026 | Paul Josh D.officer: Chief Accounting Officer | Sell | 900 | $345.00 |
| Jul 1, 2026 | Bawa Aparnadirector | Sell | 327 | $309.83 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 214 | $291.84 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 1,300 | $288.96 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 886 | $291.07 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 2,100 | $290.03 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 300 | $284.80 |
| Jun 24, 2026 | Golechha Dipakofficer: EVP, Chief Financial Officer | Sell | 200 | $286.68 |
| Jun 22, 2026 | Bawa Aparnadirector | Sell | 345 | $290.17 |
| Jun 16, 2026 | GOETZ JAMES Jdirector | Sell | 1,493 | $281.64 |
| Jun 16, 2026 | GOETZ JAMES Jdirector | Sell | 7,114 | $279.88 |
Source: PANW SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full PANW insider & 13F page →PANW research & analysis
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Palo Alto Networks, Inc. company profile
Overview
Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The company went public in July 2012 and has since evolved from a traditional firewall appliance vendor into a comprehensive cybersecurity platform provider. Palo Alto Networks serves medium to large enterprises, service providers, and government entities across various industries including education, energy, financial services, healthcare, and telecommunications. The company has undergone significant transformation in recent years, shifting from hardware-focused products to software-based and cloud-delivered security solutions while pursuing an aggressive "platformization" strategy to consolidate customers' security architectures.
Business
Palo Alto Networks operates in the cybersecurity industry, providing comprehensive security solutions designed to protect organizations from cyber threats across their entire digital infrastructure. The cybersecurity industry has become increasingly critical as organizations face sophisticated and evolving threats including malware, ransomware, data breaches, and advanced persistent threats. The company operates through three primary business segments: Network Security Platform represents the company's foundational business, accounting for approximately 40-45% of total revenue. This segment includes next-generation firewalls delivered as physical appliances, virtual machines, or cloud-native software. These firewalls go beyond traditional packet filtering to provide deep packet inspection, application awareness, and integrated threat prevention. The platform includes Panorama, a centralized management solution that allows organizations to control and monitor their firewall deployments across on-premises, cloud, and hybrid environments. Prisma Cloud Security Platform generates roughly 25-30% of revenue and focuses on securing cloud environments and applications. As organizations migrate workloads to public clouds like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, they face new security challenges. Prisma Cloud provides cloud security posture management, workload protection, data security, and compliance monitoring. The platform includes 14 integrated modules covering everything from infrastructure-as-code scanning to runtime protection for containers and serverless functions. Cortex Security Operations Platform accounts for approximately 25-30% of revenue and addresses the challenge of security operations and incident response. This segment includes XSIAM (Extended Security Intelligence and Automation Management), which uses artificial intelligence to automate threat detection, investigation, and response. The platform consolidates security data from across an organization's infrastructure to provide comprehensive visibility and automated response capabilities. This segment also includes endpoint protection, threat intelligence, and security orchestration tools. The company also provides Secure Access Service Edge (SASE) solutions that combine network security with wide-area networking capabilities, enabling secure access for remote workers and branch offices. Additionally, Palo Alto Networks offers professional services, training, and support services across all platforms.
Revenue model
Palo Alto Networks generates revenue through multiple business models, with subscription services becoming increasingly dominant. The company has successfully transitioned from a traditional hardware sales model to a recurring revenue model centered on software subscriptions and cloud-delivered services. Subscription Revenue represents the largest and fastest-growing component, accounting for approximately 60-65% of total revenue. Customers pay recurring fees for threat prevention services, malware protection, URL filtering, DNS security, and advanced security analytics. These subscriptions typically range from one to five years and provide predictable, recurring revenue streams. The company's Next-Generation Security (NGS) Annual Recurring Revenue (ARR) has grown to over $5 billion, representing the subscription-based portion of the business. Product Revenue includes sales of physical firewall appliances, software licenses, and virtual system upgrades, comprising roughly 25-30% of total revenue. While this segment has experienced slower growth as customers shift toward software and cloud solutions, it remains important for initial customer acquisition and hardware refresh cycles. Support Revenue generates approximately 10-15% of total revenue through maintenance contracts, technical support, and professional services including implementation, configuration, and migration assistance. The company's primary customers are medium to large enterprises, government agencies, and service providers who require comprehensive cybersecurity solutions. These organizations typically spend between $100,000 to several million dollars annually on Palo Alto Networks solutions, with over 1,200 customers spending more than $1 million annually. Several factors influence the company's margins and profitability. Positive margin drivers include the shift toward higher-margin subscription services, platform consolidation deals that reduce sales costs, AI-powered automation reducing support expenses, and economies of scale in cloud infrastructure. The company's "platformization" strategy, where customers adopt multiple security platforms from Palo Alto Networks, increases deal sizes and reduces customer acquisition costs. Negative margin pressures include intense competition from both established players like Cisco and Fortinet and emerging cloud-native security vendors, pricing pressure in commoditized security categories, and significant research and development investments required to stay competitive in rapidly evolving threat landscapes. Additionally, the company faces customer budget constraints during economic downturns and the challenge of integrating acquired technologies while maintaining service quality.
Competitive moat
Palo Alto Networks possesses a moderately strong competitive moat built primarily on technological differentiation, customer switching costs, and network effects, though this moat faces ongoing challenges from rapid industry evolution. The company's primary moat stems from its integrated platform approach and deep technical capabilities. Unlike point solution providers, Palo Alto Networks offers comprehensive security platforms that share threat intelligence and provide unified management across network, cloud, and security operations. This integration creates significant switching costs as customers become dependent on the interconnected functionality and would face substantial complexity and expense to replace the entire security architecture with competing solutions. Data network effects strengthen the moat as the company processes over 5 petabytes of security data daily from its global customer base. This massive data collection enables more accurate threat detection through machine learning models and provides faster response to emerging threats. The company operates over 100 machine learning models across its products, creating a virtuous cycle where more customers generate better threat intelligence, which attracts additional customers. Customer relationships and switching costs provide additional protection. Security solutions are mission-critical, and customers are generally reluctant to change vendors due to the complexity of migration, staff training requirements, and potential security gaps during transitions. The company's platformization strategy increases these switching costs by making customers dependent on multiple integrated Palo Alto Networks solutions. However, the moat faces several challenges. The cybersecurity industry experiences rapid technological change, with new attack vectors and security approaches constantly emerging. Cloud-native competitors like CrowdStrike and emerging AI-powered security startups can potentially leapfrog established players with innovative approaches. Large technology companies including Microsoft, Google, and Amazon Web Services are increasingly integrating security capabilities into their platforms, potentially commoditizing certain security functions. Additionally, open-source security tools and the trend toward security automation could reduce barriers to entry for new competitors. The company's moat is further challenged by customer demands for best-of-breed solutions rather than integrated platforms, potentially fragmenting the market. Price competition remains intense, particularly in mature categories like traditional firewalls, which could pressure margins and limit the company's ability to invest in maintaining technological leadership.
Risks & safety
Palo Alto Networks presents a moderate margin of safety with strong cash generation but elevated valuation metrics and some balance sheet concerns. **Cash and Liquidity Position:** - Cash and short-term investments: $2.38 billion as of Q3 2025 - Strong free cash flow generation: $1.47 billion in Q1 2025, $509 million in Q2 2025 - Operating cash flow demonstrates consistent positive generation - No immediate liquidity concerns **Debt and Solvency:** - Current ratio of 0.90, indicating potential short-term liquidity pressure - Total liabilities of $14.8 billion against $22.0 billion in total assets - Debt-to-equity ratio has varied but remains manageable - Strong recurring revenue base provides cash flow predictability **Valuation Metrics:** - EV/EBITDA of 77.8x appears elevated relative to historical norms - Price-to-book ratio of approximately 20x suggests premium valuation - Revenue growth of 15% may not justify current valuation multiples - Trading at significant premium to broader software infrastructure peers **Other Considerations:** - Subscription-based revenue model provides stability and predictability - Strong competitive position in growing cybersecurity market - Potential margin expansion through AI automation and platform consolidation - Exposure to economic cycles through enterprise IT spending patterns
Recent development
Over the past few years, Palo Alto Networks has executed a comprehensive transformation strategy centered on three key initiatives: platformization, artificial intelligence integration, and market expansion through strategic acquisitions. The company's platformization strategy has become its primary growth driver, focusing on consolidating customers' security architectures around Palo Alto Networks' three main platforms rather than selling individual point solutions. This approach has yielded significant results, with over 1,250 platformizations among the company's top 5,000 customers as of Q3 2025, up from approximately 1,000 in early 2024. The strategy has proven financially successful, with platformized customers showing 6% higher average ARR compared to traditional customers, and the company targeting 2,500-3,500 total platformizations representing 60-70% of NGS ARR. Artificial intelligence integration has emerged as a central theme across all product lines. The company launched comprehensive AI security offerings including AI Access, AI Firewall, and AI Security Posture Management, generating over $400 million in AI-related ARR by Q3 2025. Beyond AI security products, the company has embedded AI throughout its operations, deploying AI-powered copilots that have reduced customer support ticket resolution time by 50% and improved developer productivity by 20-40%. The recent announcement to acquire Protect.ai demonstrates continued investment in AI model security capabilities. Strategic acquisitions and partnerships have accelerated market expansion, most notably the partnership with IBM to migrate QRadar customers to Palo Alto Networks' XSIAM platform. This initiative has created a $1 billion migration pipeline and added 550 new customers through the QRadar SaaS acquisition. The company has also expanded into adjacent markets, launching Prisma Access Browser with 3 million license seats sold and developing comprehensive cloud security capabilities. The company has demonstrated strong execution in product innovation, launching XSIAM as a next-generation security operations platform that has grown to 270 customers with average ARR exceeding $1 million. Prisma Cloud has evolved into a comprehensive platform with 14 integrated modules, while the SASE offering has achieved 36% ARR growth. These innovations have contributed to the company crossing the $5 billion NGS ARR milestone and maintaining its target of reaching $15 billion ARR by fiscal year 2030.
PANW company profile · for informational purposes only — not investment advice.
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