Palo Alto Networks, Inc. (PANW) Income Statement
PANW FY2026 at a glance
Fiscal year ended July 31, 2026 · U.S. dollarsPANW revenue and net income
Where PANW's revenue goes
FY2026Each bar shows an amount and its share of revenue. PANW kept 2.7% of revenue as net income.
PANW profit margins
PANW growth rates
to FY2026| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Revenue | +24.5% | +18.5% | +22.0% | +23.6% |
| Gross profit | +19.3% | +17.5% | +22.1% | +23.1% |
| Operating income | −44.1% | +21.5% | — | — |
| Net income | −72.9% | −11.3% | — | — |
| EPS (diluted) | 0.0% | +8.7% | +22.2% | +25.9% |
1-year change and average annual growth (CAGR) over 3, 5 and 10 fiscal years. "—" when a starting value was zero or negative.
PANW quarterly EPS vs estimates
Palo Alto Networks beat the analyst EPS estimate in 6 of the last 8 quarters. Next report: November 18, 2026 (estimate $0.52).
PANW income statement
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 | FY2018 | FY2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $11.48B | $9.22B | $8.03B | $6.89B | $5.50B | $4.26B | $3.41B | $2.90B | $2.27B | $1.76B |
| Cost of revenue | $3.40B | $2.45B | $2.06B | $1.91B | $1.72B | $1.27B | $999.5M | $808.4M | $645.3M | $476.6M |
| Gross profit | $8.08B | $6.77B | $5.97B | $4.98B | $3.78B | $2.98B | $2.41B | $2.09B | $1.63B | $1.28B |
| Research & development | $2.55B | $1.98B | $1.81B | $1.60B | $1.42B | $1.14B | $768.1M | $539.5M | $400.7M | $347.4M |
| Sales, general & admin | $4.83B | $3.54B | $3.48B | $2.99B | $2.55B | $2.14B | $1.82B | $1.61B | $1.36B | $1.12B |
| Total operating expenses | $7.38B | $5.53B | $5.28B | $4.60B | $3.97B | $3.29B | $2.59B | $2.15B | $1.73B | $1.44B |
| Operating income | $695.0M | $1.24B | $683.9M | $387.3M | −$188.8M | −$304.1M | −$179.0M | −$54.1M | −$104.2M | −$165.8M |
| Interest income | $374.0M | $363.5M | $317.9M | $224.4M | $15.6M | $8.5M | $41.4M | $69.8M | $27.1M | $14.7M |
| Interest expense | $0 | $3.0M | $8.3M | $27.2M | $27.4M | $163.3M | $88.7M | $83.9M | $29.6M | $24.5M |
| Income before taxes | $536.0M | $1.60B | $988.3M | $566.3M | −$207.2M | −$465.0M | −$231.8M | −$74.6M | −$130.2M | −$194.1M |
| Income taxes | $229.0M | $461.8M | −$1.59B | $126.6M | $59.8M | $33.9M | $35.2M | $7.3M | $17.7M | $22.5M |
| Net income | $307.0M | $1.13B | $2.58B | $439.7M | −$267.0M | −$498.9M | −$267.0M | −$81.9M | −$147.9M | −$216.6M |
| EBITDA | $536.0M | $1.94B | $1.28B | $869.0M | $95.6M | −$46.6M | $59.5M | $163.1M | $20.7M | −$95.8M |
| EPS (diluted) | $2.81 | $2.81 | $2.84 | $2.19 | $1.26 | $1.03 | $0.83 | $0.92 | $0.64 | $0.45 |
| Gross margin | 70.4% | 73.4% | 74.3% | 72.3% | 68.8% | 70.0% | 70.7% | 72.1% | 71.6% | 72.9% |
| Operating margin | 6.1% | 13.5% | 8.5% | 5.6% | −3.4% | −7.1% | −5.3% | −1.9% | −4.6% | −9.4% |
| Net margin | 2.7% | 12.3% | 32.1% | 6.4% | −4.9% | −11.7% | −7.8% | −2.8% | −6.5% | −12.3% |
| Jul '26 | Apr '26 | Jan '26 | Oct '25 | Jul '25 | Apr '25 | Jan '25 | Oct '24 | Jul '24 | Apr '24 | Jan '24 | Oct '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.41B | $3.00B | $2.59B | $2.47B | $2.54B | $2.29B | $2.26B | $2.14B | $2.19B | $1.98B | $1.98B | $1.88B |
| Cost of revenue | $1.11B | $974.0M | $685.0M | $638.0M | $679.0M | $619.3M | $599.2M | $554.0M | $573.7M | $513.6M | $499.1M | $472.8M |
| Gross profit | $2.30B | $2.03B | $1.91B | $1.84B | $1.86B | $1.67B | $1.66B | $1.58B | $1.62B | $1.47B | $1.48B | $1.41B |
| Research & development | $779.0M | $734.0M | $511.0M | $528.0M | $503.5M | $494.5M | $505.7M | $481.0M | $494.8M | $457.2M | $447.9M | $409.5M |
| Sales, general & admin | $1.35B | $1.48B | $1.00B | $999.0M | $856.6M | $956.4M | $912.1M | $818.0M | $882.6M | $837.3M | $974.5M | $780.6M |
| Total operating expenses | $2.13B | $2.21B | $1.51B | $1.53B | $1.36B | $1.45B | $1.42B | $1.30B | $1.38B | $1.29B | $1.42B | $1.19B |
| Operating income | $169.0M | −$183.0M | $400.0M | $309.0M | $497.2M | $218.8M | $240.4M | $286.0M | $238.4M | $176.7M | $53.6M | $215.2M |
| Interest income | $89.0M | $71.0M | $109.0M | $105.0M | $98.1M | $92.8M | $86.9M | $85.7M | $83.1M | $78.3M | $85.3M | $71.2M |
| Interest expense | $0 | $0 | $0 | $0 | $400,000 | $700,000 | $900,000 | $1.0M | $300,000 | $2.3M | $2.8M | $2.9M |
| Income before taxes | −$269.0M | −$156.0M | $549.0M | $412.0M | $591.8M | $310.5M | $324.8M | $368.0M | $319.0M | $251.2M | $135.5M | $282.6M |
| Income taxes | $13.0M | $21.0M | $117.0M | $78.0M | $338.0M | $48.4M | $57.5M | $17.0M | −$38.7M | −$27.6M | −$1.61B | $88.4M |
| Net income | −$282.0M | −$177.0M | $432.0M | $334.0M | $253.8M | $262.1M | $267.3M | $351.0M | $357.7M | $278.8M | $1.75B | $194.2M |
| EBITDA | −$1.07B | $327.0M | $775.0M | $501.0M | $675.7M | $399.1M | $412.9M | $453.0M | $391.9M | $327.0M | $205.8M | $348.8M |
| EPS (diluted) | $0.53 | $0.32 | $1.03 | $0.93 | $0.42 | $0.80 | $0.81 | $0.78 | $0.76 | $0.66 | $0.73 | $0.69 |
| Gross margin | 67.6% | 67.6% | 73.6% | 74.2% | 73.2% | 72.9% | 73.5% | 74.1% | 73.8% | 74.1% | 74.7% | 74.8% |
| Operating margin | 5.0% | −6.1% | 15.4% | 12.5% | 19.6% | 9.6% | 10.6% | 13.4% | 10.9% | 8.9% | 2.7% | 11.5% |
| Net margin | −8.3% | −5.9% | 16.7% | 13.5% | 10.0% | 11.5% | 11.8% | 16.4% | 16.3% | 14.0% | 88.4% | 10.3% |
Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported in PANW's financial statements (latest annual report filed September 10, 2026); data from EODHD. Sales, general & administrative expenses include sales and marketing.
PANW financial results
In fiscal year 2026 (ended July 31, 2026), Palo Alto Networks reported revenue of $11.5 billion, up 24.5% from the year before. It had net income of $307.0 million (down 72.9%), a net profit margin of 2.7%. Diluted earnings per share came to $2.81. Over five years revenue grew at an average rate of 22.0% a year.
See the PANW stock overview for the latest quote and news, or the PANW chart for price history and technical indicators.
PANW income statement FAQ
What is Palo Alto Networks's annual revenue?
Palo Alto Networks reported total revenue of $11.5 billion for fiscal year 2026, which ended on July 31, 2026. That was up 24.5% from $9.2 billion the previous year.
Is Palo Alto Networks profitable?
Yes. Palo Alto Networks reported net income of $307.0 million in fiscal 2026, a net profit margin of 2.7%; its operating margin was 6.1%.
What is Palo Alto Networks's gross margin?
Palo Alto Networks's gross margin was 70.4% in fiscal 2026: for every $100 of revenue, Palo Alto Networks kept $70 after the direct cost of its products and services.
How much does Palo Alto Networks spend on research and development?
Palo Alto Networks spent $2.6 billion on research and development in fiscal 2026, 22.2% of revenue.
How fast is Palo Alto Networks growing?
Revenue grew 22.0% a year on average over the last five fiscal years, from $4.3 billion to $11.5 billion.
What are Palo Alto Networks's earnings per share?
Palo Alto Networks earned $2.81 per diluted share in fiscal 2026, compared with $2.81 a year earlier.
When will Palo Alto Networks report its next earnings?
Palo Alto Networks is expected to report results for the quarter ending October 31, 2026 on November 18, 2026.
When does Palo Alto Networks's fiscal year end?
Palo Alto Networks's fiscal year ends in July. The latest annual report covers the year ended July 31, 2026 and was filed on September 10, 2026.