Palo Alto Networks, Inc. (PANW) Stock

Palo Alto Networks, Inc. (PANW) is a Technology stock trading at $358.71 (as of 2026-07-17), with a market capitalization of $292.35B and a trailing P/E of 346.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Palo Alto Networks, Inc. provides cybersecurity offerings that include firewall technologies, centralized management for deployed firewall systems, and subscription services for areas such as threat and malware prevention, URL filtering, endpoint protection, DNS security, and data loss prevention. The company also supplies cloud and secure access capabilities, security analytics and automation, threat intelligence, and related professional services, support, and training for customers worldwide.

Understand Palo Alto Networks, Inc.: how it makes money

Palo Alto Networks sells cybersecurity solutions, including firewall appliances and software, Panorama security management for managing those deployments, and subscription services for threat prevention and related capabilities.

Profit is structurally driven by the recurring subscription and support revenue base, which is the large majority of total revenue, while product revenue is smaller and more likely to be the pressure point.

Revenue by segment (latest quarter)
Sub+Support$2.4B
Product$0.6B

Business quality (Weak): Subscription and support is the core of the revenue mix, and gross margin is high, but the company is currently reporting a negative operating margin (operating margin -6.1%), which highlights cost and execution pressure at the operating level.

Valuation: At 265× earnings, PANW trades 732% above the Tech Hardware average (32×). Note: one-time items can distort reported P/E.

Bull case

  • Recurring mix: Subscription and support revenue is the majority of revenue in the latest quarter (2.41B out of 3.0B).
  • High gross margin: Gross margin is reported at 67.6%, indicating strong unit-level profitability before operating expenses.

Bear case

  • Operating profitability is currently negative: Operating margin is -6.1% in the latest reported period.
  • Smaller product portion: Product revenue is 0.59B versus 2.41B from subscription and support, so results may be sensitive to how product demand and conversion into recurring services develop.
Valuation — source: SEC EDGAR (first-party)
Price$358.71
Market Cap$292.35B
P/E Ratio346.9
EV / EBITDA153.7
Price / Book10.57
Price / Sales27.56
FCF Yield2.6%
DCF Value (model)$190.07
DCF Upside vs Price-47.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$9.22B
Net Margin12.3%
Revenue Growth (YoY)31.1%
EPS Growth (YoY)-156.4%
FCF Growth (YoY)410.2%
Financial Health — source: SEC EDGAR
Altman Z-Score9.83 (safe)
Valuation vs Sector & Industry
Stock P/E346.9
Sector P/E (Technology)34.7
Industry P/E (Computers)30.9
vs Sector900.3%
vs Industry1022.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Sells (12mo)55
Top Institutional HolderVANGUARD GROUP INC ($12.51B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryComputers
CEONikesh Arora
Employees15,758
CountryUS
IPO Date2012-07-20

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PANW earnings history · PANW institutional & insider holders · PANW KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.