Palo Alto Networks, Inc. (PANW) AI Stock Analysis

Palo Alto Networks, Inc. specializes in delivering cybersecurity solutions globally. Its portfolio includes firewall appliances and software, Panorama security management solutions, and virtual system upgrades to safeguard networks in public or private cloud environments. The company also provides subscription services for threat prevention, malware protection, URL filtering, and data loss prevention across laptops, mobile devices, and corporate networks. Additionally, Palo Alto Networks offers cloud security, secure access solutions, advanced threat intelligence, cybersecurity consulting, architecture design, firewall migration, and education services through certifications. It serves enterprises, service providers, and government entities worldwide.

Revenue rose from $5.50B in FY2022 to $6.89B in FY2023, $8.03B in FY2024, $9.22B in FY2025, and $11.48B in FY2026, reflecting a 5-year revenue CAGR of 22.0%. Annual revenue growth was 24.5% in FY2026. Gross margin stood at 70.4% in FY2026, down from 73.4% in FY2025. Operating margin was 6.1% in FY2026, compared to 13.5% in FY2025. Net income decreased to $307.0M in FY2026 from $1.13B in FY2025, bringing the net margin to 2.7%. In the latest quarter ended July 31, 2026, quarterly revenue growth was 34.5% year-over-year, while quarterly earnings growth was 60.5%.

As of July 31, 2026, Palo Alto Networks held $3.07B in cash and short-term investments alongside total debt of $2.50B, resulting in net cash of $571.0M. Shareholders' equity was $27.49B, with a debt-to-equity ratio of 0.09 and a current ratio of 0.87. In FY2026, operating cash flow reached $4.55B and free cash flow was $4.11B. The company allocated $440.0M to capital expenditures and $1.00B to share buybacks, while its 5-year share count change was 30.4%.

PANW trades at a trailing P/E of 855.0x and a forward P/E of 94.3x, compared to the median of its Nasdaq-100 Technology peers of 42.1x and 25.1x. Its price-to-sales ratio is 24.4x versus the peer median of 11.9x, and its EV-to-EBITDA stands at 230.9x compared to the peer median of 30.6x. The stock has gained 66.4% over the past 1 year and 304.1% over 5 years, outperforming the S&P 500 (SPY) returns of 16.8% and 83.0% across the same respective periods.

Wall Street analysts maintain 32 Strong Buy, 10 Buy, 11 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $398.52, representing 16.5% upside versus the last close of $342.00. For the current fiscal year ending July 31, 2027, analysts estimate EPS of $4.19 and revenue of $14.17B. For the next fiscal year, 18 analysts project EPS of $2.21 and revenue of $16.23B. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is November 18, 2026.

This page is an AI-written research summary of Palo Alto Networks, Inc. (PANW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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