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PANW

S&P 500
Neutral · 43/100

Palo Alto Networks

Information Technology
Systems Software

$286.40

0.5%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 44.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$234.54B

P/E

Forward P/E (est.)

ROE

6.3%

Revenue Growth

19.5%

EPS Growth

-30.5%

Profit Margin

8.0%

FCF Yield

0.9%

Debt / Equity

0x

ROIC

3.0%

Interest Coverage

149.75x

Current Ratio

0.86x

Dividend Yield

Implied Growth (rev. DCF)

7.4%

Rating Score

43/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what PANW's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. PANW trades near $286.40, above its 50-day average ($224.58) and 200-day average ($196.14). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 53 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. PANW's is $13.40 (~4.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month PANW found buyers near $241.00 (support) and sellers near $302.95 (resistance); its 52-week range is $139.57–$302.95. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.3× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Palo Alto Networks (PANW) is a mega-cap company in the Systems Software industry, part of the Information Technology sector of the S&P 500, with a market value around $234.54B.

In its latest reported year it generated about $9.22B in revenue and $1.13B in net profit.

Our model rates PANW Neutral (43/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

21.3%

Revenue moved from $4.26B in 2021 to $9.22B in 2025, a 21.3% compound annual growth rate. The most recent year grew a strong 19.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

73.4%

Operating Margin

13.5%

Net Margin

12.3%

ROE

6.3%

Palo Alto Networks keeps about 8.0% of each sales dollar as net profit, with a 73.4% gross margin and 13.5% operating margin. Return on equity is 6.3% and return on invested capital about 3.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

$1.99B

Net Debt

-$372.50M

Net cash position

Net Debt / EBITDA

-0.3x

Debt / Equity

0x

Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 149.8x, with a current ratio of 0.9x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $1.99B of total debt against $2.36B of cash.

Cash Flow Analysis
Research

Operating CF

$3.72B

Free Cash Flow

$3.47B

FCF Margin

37.6%

In the latest year Palo Alto Networks produced about $3.72B of operating cash flow and $3.47B of free cash flow after capital spending. That is a free-cash-flow yield of about 0.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

P/S

24.47x

P/B

15.24x

EV / EBITDA

PANW trades at n/a trailing earnings, 24.5x sales, and 15.2x book value. Reverse-engineering today's price implies the market expects roughly 7.4% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
Forward P/E
P/S ratio
24.5xExpensive
Revenue growth
19.5%Strong
EPS growth
-30.5%Weak
Gross margin
73.4%Strong
Net margin
8.0%Weak
ROE
6.3%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How PANW stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), PANW ranks #63 of 72 by our overall rating.

P/E vs sector

median 35.6x

ROE vs sector

6.3%

median 25.6%

Growth vs sector

19.5%

median 17.4%

Sector rank

#63

of 72 by rating

CompanyP/ERev Gr.Rating
PANWThis stock19.5%Neutral· 43
CRWD23.2%Weak· 40
FTNT53.8x15.8%Favorable· 60
NOW57.3x21.7%Favorable· 64
GEN15x27.1%Strong· 79
WDC37.9x32.0%Strong· 77
IBM21.8x9.7%Favorable· 64
QCOM24.3x5.2%Favorable· 60
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianFTNTNOWGENWDCIBMQCOMP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$40.54$67.57

vs. $286.40 today · expected CAGR -32%-25%

Metric20262027202820292030
Revenue$11.07B$13.28B$15.93B$19.12B$22.95B
Net income$1.33B$1.59B$1.91B$2.29B$2.75B
EPS$1.63$1.96$2.35$2.82$3.38
Share price (low)$19.55$23.46$28.15$33.79$40.54
Share price (high)$32.59$39.10$46.92$56.31$67.57
CAGR (low–high)-93% / -89%-71% / -63%-54% / -45%-41% / -33%-32% / -25%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for PANW:

  • Revenue is growing 19.5% a year, a sign of real demand.
  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
Bear Case

The case against PANW:

  • Limited free cash flow at today's price.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Palo Alto Networks is a mega-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at n/a earnings, which our model scores Neutral (43/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.