At a glance
Palo Alto Networks Inc is worth $287.71B, about 879 times its fiscal 2026 earnings. Revenue grew 24.5% to $11.48B in fiscal 2026, with 2.7% kept as profit; over 5 years it has grown 22.0% a year. It pays no dividend; it spent $2.73B buying back its shares over FY2022–FY2026. The stock returned +59.7% over the past year with dividends reinvested and +32.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 46.8% in the 2020 crash (S&P 500: 33.7%) and 30.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 12 months after the lows.
The business in plain English
Palo Alto Networks makes cybersecurity products: software, subscriptions and hardware that protect an organization's networks, cloud systems, devices, AI tools and logins from attackers. The company was incorporated in 2005 and is based in Santa Clara, California. Its customers range from small businesses to large enterprises and government agencies. Its main pitch is consolidation: customers can replace a patchwork of single-purpose security tools with one of its integrated platforms.
It runs three platforms. Network & AI Security includes its firewalls, which inspect traffic entering and leaving a network. It also includes Prisma Access, which protects remote workers and branch offices, and Prisma AIRS, which protects AI apps and agents. Cortex covers security operations software that helps teams detect and respond to attacks. It also includes cloud security and Chronosphere, which monitors apps and cloud systems. Idira, its identity security platform, controls which people, machines and AI agents can access what. Resellers and other channel partners handle a substantial portion of sales.
Revenue was $11.48 billion in the fiscal year ended July 31, 2026, up 24.5%. Subscriptions made up 54.3% of revenue, support contracts 25.8% and product sales 19.9%. By region, the United States accounted for 61.9%; Europe, the Middle East and Africa 21.1%; Asia Pacific and Japan 12%; and the rest of the Americas 5%.
Price history
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PANW +59.7% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Subscription | $6.24B | 54.3% |
| Support | $2.96B | 25.8% |
| Product | $2.28B | 19.9% |
By geography
| United States | $7.11B | 61.9% |
| Europe, the Middle East, and Africa (“EMEA”) | $2.43B | 21.1% |
| Asia Pacific and Japan (“APAC”) | $1.37B | 12% |
| Other Americas | $571.0M | 5% |
Latest results
- In Q4 FY2026 (ended Jul 31, 2026), revenue was $3.41B, up 34.5% from a year earlier, and net income was $-282.0M (-211.0%).
- For fiscal 2026, revenue was $11.48B (+24.5% year over year; +22.0% a year from FY2021 to FY2026) with a 2.7% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +22.0% good |
|---|---|
| Operating margin | 6.1% watch |
| Free cash flow margin | 35.8% good |
| Return on equity (FY2026) | 1.1% weak |
| Return on assets (FY2026) | 0.6% weak |
| Net cash (cash minus debt) | $6.13B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $4.26B | $-498.9M | $1.39B |
| FY2022 | $5.50B | $-267.0M | $1.79B |
| FY2023 | $6.89B | $439.7M | $2.63B |
| FY2024 | $8.03B | $2.58B | $3.10B |
| FY2025 | $9.22B | $1.13B | $3.47B |
| FY2026 | $11.48B | $307.0M | $4.11B |
Valuation snapshot
| Market value | $287.71B |
|---|---|
| P/E ratio | 879.3 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Palo Alto Networks’s market value went from $11.47B at the end of 2016 to $287.71B on Nov 2, 2026, about 25.1 times as much; since the end of 2025 it is up 124%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $287.71B | +124.1% |
| 2025 | $128.39B | +7.5% |
| 2024 | $119.40B | +28.4% |
| 2023 | $92.98B | +120.4% |
| 2022 | $42.19B | -23.2% |
| 2021 | $54.93B | +62.3% |
| 2020 | $33.84B | +49.4% |
| 2019 | $22.65B | +26.8% |
| 2018 | $17.87B | +34.2% |
| 2017 | $13.32B | +16.2% |
| 2016 | $11.47B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PANW price data to Nov 2, 2026 | +90.9% | +59.7% | +41.1% | +32.9% | +30.5% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +90.9% |
| 2025 | +1.2% |
| 2024 | +23.4% |
| 2023 | +111.3% |
| 2022 | -24.8% |
| 2021 | +56.7% |
| 2020 | +53.7% |
| 2019 | +22.8% |
| 2018 | +29.9% |
| 2017 | +15.9% |
| 2016 | -29.0% |
| 2015 | +43.7% |
| 2014 | +113.3% |
| 2013 | +7.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 41.2% over that stretch · deepest drop along the way 46.8%, back to its old high 4.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.4% over that stretch · deepest drop along the way 30.6%, back to its old high 12.2 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 49 sales ($31.3M), 18 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 24, 2026 | Dipak Golechha EVP, Chief Financial Officer | sell (plan) | $3.7M |
| Sep 24, 2026 | Dipak Golechha EVP, Chief Financial Officer | sell (plan) | $2.5M |
| Jun 12, 2026 | John P. Key Director | sell | $2.1M |
| Sep 24, 2026 | Dipak Golechha EVP, Chief Financial Officer | sell (plan) | $2.1M |
| Jun 12, 2026 | James J Goetz Director | sell | $2.0M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.44% | Mar 31, 2026 |
ETFs with the most weight in PANW
| CIBR First Trust NASDAQ Cybersecurity ETF | 7.33% |
| HACK Amplify Cybersecurity ETF | 5.6% |
| BUG Global X Cybersecurity ETF | 5.39% |
| AIFD TCW Artificial Intelligence ETF | 5.32% |
| USSE Segall Bryant & Hamill Select Equity ETF | 5.03% |
| XDAT Franklin Exponential Data ETF | 4.86% |
| WCBR WisdomTree Cybersecurity Fund | 4.8% |
| CLOD Themes Cloud Computing ETF | 4.78% |
What could go wrong
- Absorbing the CyberArk acquisition. The annual report says the CyberArk acquisition substantially changed the size and scope of the business, adding risks such as more competition. Large deals can also distract management, bring unexpected liabilities and dilute shareholders.
- Cloud and AI giants build their own security. Cloud infrastructure providers and advanced AI companies increasingly build security and monitoring tools into their own services. Customers could choose those built-in options over Palo Alto Networks' products.
- Consolidation could favor broader rivals. Customers are cutting how many security vendors they use. That trend supports Palo Alto Networks' platform pitch, but the annual report warns it could also favor competitors with even broader platforms.
- A breach or product flaw would hurt trust. Customers pay it to keep attackers out. A product defect, a missed attack or a breach of its own systems could hurt its reputation. Customers' own setup mistakes can also be blamed on it.
- Profits have shrunk sharply. Net income fell 72.9% to $307 million in fiscal 2026 (ended July 31, 2026), and the final quarter showed a $282 million loss. The annual report warns profitability may not be maintained.
- New shares dilute existing owners. Despite buybacks, the share count rose about 38% from November 2021 to August 2026, adjusted for splits. New stock for acquisitions, employee pay or its 2030 convertible notes can shrink each owner's slice.
Recent events
- Quarterly results released
- Executive or board change; Bylaws or fiscal year changed
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Other company announcement
- Other company announcement
- Quarterly results released
- Major agreement signed; New debt or financial obligation; Other company announcement
- Investor presentation or announcement
- Executive or board change; Shareholder vote results
For income and retirement investors
Palo Alto Networks pays no dividend, and its annual report says it does not intend to pay one for the foreseeable future. An income investor would get no regular payouts and would have to cash in shares to get money from the stock. Instead, the company buys back its own shares. It spent $1.0 billion on buybacks in the fiscal year ended July 31, 2026, and about $2.7 billion from fiscal 2022 through 2026, with none in fiscal 2025. Even so, the share count rose about 38% from November 2021 to August 2026, adjusted for stock splits, because new shares outpaced buybacks.
The stock has fallen hard in past downturns. It dropped 46.8% in the 2020 COVID crash and got back to its old high about four months after the bottom. In the 2022 bear market it fell 30.6% and took about 12 months from the low to recover. As of October 27, 2026, its worst decline in about 14 years of trading was 48%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Palo Alto Networks make money?
Mostly from subscriptions and support contracts tied to its cybersecurity products. In the fiscal year ended July 31, 2026, revenue was $11.48 billion. Subscriptions made up 54.3%, support 25.8% and product sales 19.9%. Customers include large enterprises and government agencies. They use its network, cloud, identity and AI security, often bundled into its Network & AI Security, Cortex and Idira platforms. Channel partners handle a substantial portion of sales. Its Unit 42 team also sells incident response and consulting. The United States supplied 61.9% of revenue.
Does Palo Alto Networks pay a dividend?
No. Palo Alto Networks does not pay a dividend. Its annual report for the fiscal year ended July 31, 2026, says it does not intend to pay one for the foreseeable future. Instead, it buys back its own shares: $1.0 billion worth in fiscal 2026 and about $2.7 billion from fiscal 2022 through 2026. For an income investor, that means no regular payouts. Any cash from the stock would have to come from cashing in shares.
Why is Palo Alto Networks' P/E ratio so high?
Because its profit is small compared with its share price. The P/E, or price-to-earnings ratio, shows how many dollars investors pay for each dollar of yearly profit per share. As of October 27, 2026, it was about 1,004, based on fiscal 2026 earnings of $0.40 per diluted share. Net income fell 72.9% to $307 million that year even as revenue grew 24.5%. Free cash flow, the cash left after running the business and investing in equipment, was far higher at $4.1 billion.
Is Palo Alto Networks stock volatile?
Yes, quite. As of October 27, 2026, its one-year volatility, a measure of how widely the price swings, was 49.3%. Its beta was 1.25, meaning it has tended to move more than the overall market. It fell as much as 36% from a high during that year, and 48% at its worst in about 14 years of trading. Gains have also been large: 82.4% over one year and an average of 32% a year over 10 years.
Which ETFs own Palo Alto Networks stock?
Many ETFs hold it, and the ones that give it the most weight are mostly cybersecurity funds. They include First Trust NASDAQ Cybersecurity ETF (CIBR), Amplify Cybersecurity ETF (HACK), Global X Cybersecurity ETF (BUG) and WisdomTree Cybersecurity Fund (WCBR). It also has a sizable weight in funds focused on AI and cloud computing, such as TCW Artificial Intelligence ETF (AIFD) and Themes Cloud Computing ETF (CLOD). Each of these spreads money across many companies, though each stays concentrated in one part of technology.