Palo Alto Networks, Inc.PANWNASDAQ

Overview Intelligence Charts News Fundamentals Key Metrics Earnings Growth Financials Insiders

Revenue (LTM)

$9.2B

+14.9% YoY

Net Income (LTM)

$1.1B

-56.0% YoY

Free Cash Flow

$3.5B

Revenue CAGR (5Y)

+22.0%

Marginsimproving

FCF$3.5B

Profitable

Watch on earnings:Next-Gen Security ARR and total ARR growth rates (target: 20%+ for NGS ARR)Remaining Performance Obligation (RPO) - contracted future revenue, typically $8B+ and growing 20%+Billings growth and calculated billings (revenue + change in deferred revenue)Product revenue trajectory (investors monitor hardware decline rate vs. subscription acceleration)Operating margin and free cash flow margin expansionNet new ARR additions per quarter and sales productivity metrics

Key metrics:Next-Gen Security ARR growth rate and penetration into firewall installed base (target: 40%+ of firewall customers buying NGS) · Remaining Performance Obligation (RPO) and current RPO (cRPO) growth - leading indicator of revenue acceleration · Calculated billings growth (revenue + change in deferred revenue) - proxy for bookings momentum · Operating margin expansion trajectory toward 25%+ target and free cash flow conversion rate

Income Statement

Metric	Jul 21	Jul 22	Jul 23	Jul 24	Jul 25
Revenue	4,256	5,502↑29.3%	6,893↑25.3%	8,028↑16.5%	9,222↑14.9%
Gross Profit	2,981	3,783↑26.9%	4,983↑31.7%	5,968↑19.8%	6,770↑13.4%
Operating Income	-304	-189↑37.9%	387↑305.1%	684↑76.6%	1,243↑81.7%
Net Income	-499	-267↑46.5%	440↑264.7%	2,578↑486.2%	1,134↓56.0%
EBITDA	-47	96↑305.2%	869↑809.0%	1,276↑46.9%	1,941↑52.1%
EPS Diluted	-0.86	-0.45↑47.7%	0.64↑242.2%	3.64↑468.8%	1.60↓56.0%

Balance Sheet

⚠ Minimal financial leverage (0.04x D/E) but $3.5B annual free cash flow supports aggressive M&A strategy - integration execution risk if acquisition pace exceeds 2-3 deals per year

Metric	Jul 21	Jul 22	Jul 23	Jul 24	Jul 25
Cash & Equivalents	1,874	2,119↑13.0%	1,135↓46.4%	1,535↑35.2%	2,269↑47.8%
Total Current Assets	4,647	6,415↑38.0%	6,048↓5.7%	6,850↑13.3%	7,103↑3.7%
Total Assets	10,242	12,254↑19.6%	14,501↑18.3%	19,991↑37.9%	23,576↑17.9%
Total Current Liabilities	5,117	8,306↑62.3%	7,738↓6.8%	7,683↓0.7%	7,988↑4.0%
Total Liabilities	9,478	12,044↑27.1%	12,753↑5.9%	14,821↑16.2%	15,752↑6.3%
Total Equity	764	210↓72.5%	1,748↑732.6%	5,170↑195.7%	7,824↑51.4%
Total Debt	3,539	3,953↑11.7%	2,271↓42.6%	1,344↓40.8%	338↓74.8%
Net Debt	1,665	1,834↑10.2%	1,135↓38.1%	-191↓116.8%	-1,930↓911.7%

Cash Flow Statement

Metric	Jul 21	Jul 22	Jul 23	Jul 24	Jul 25
Operating Cash Flow	1,503	1,985↑32.0%	2,778↑39.9%	3,258↑17.3%	3,716↑14.1%
Capital Expenditure	-116	-193↓66.2%	-146↑24.1%	-157↓7.2%	-246↓57.0%
Free Cash Flow	1,387	1,792↑29.2%	2,631↑46.8%	3,101↑17.8%	3,470↑11.9%
Stock-Based Comp	895	1,011↑13.0%	1,075↑6.3%	1,075↑0.1%	1,295↑20.4%
Net Change in Cash	-1,082	245↑122.6%	-983↓501.6%	405↑141.2%	732↑81.0%

Values in millions except EPS · Ratios shown as percentages · Click any metric to drill down

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