Palo Alto Networks, Inc. (PANW) — Company Research

Last Updated: 05 Oct 2026

Palo Alto Networks, Inc. (NASDAQ: PANW) is one of the largest cybersecurity companies in the world. It sells next-generation firewalls (hardware and software) and three platforms:

• Strata, for network and AI security;
• Prisma, for cloud and secure access;
• Cortex, for security operations, now extended into observability through the Chronosphere acquisition.

The $25bn acquisition of CyberArk, completed on 11 Feb 2026, added identity security, now sold as the Idira platform. Since 23 Feb 2026 the shares have also traded in Tel Aviv.

FY2026 (the year to 31 Jul 2026) revenue rose 24.5% to $11,480m, helped by the acquisitions. Next-Generation Security annual recurring revenue (ARR) jumped 63% to $9.10bn. GAAP diluted EPS fell to $0.40 as acquisition costs and amortisation rose, while non-GAAP EPS grew to $3.84. FY2027 guidance is revenue of $14.10–14.20bn and non-GAAP EPS of $4.16–4.19. The shares closed at a record $403.24 on 02 Oct 2026, a market value of about $329.9bn.

This refresh draws on Palo Alto Networks' earnings releases, the FY2026 Form 10-K (filed 10 Sep 2026), SEC XBRL company facts and Form 4 filings, all retrieved on 05 Oct 2026. Per-share figures reflect the 3-for-1 split of Sep 2022 and the 2-for-1 split of Dec 2024. Follow the price on ChartsView Live Charts.

1. Company Snapshot

Field	Value
Full name	Palo Alto Networks, Inc. (Delaware corporation)
Ticker	PANW (NASDAQ). Also listed on the Tel Aviv Stock Exchange since 23 Feb 2026 under the symbol CYBR
Sector	Technology: cybersecurity platforms (network, cloud, security operations and identity)
CEO / Leadership	Nikesh Arora (Chairman and CEO); Dipak Golechha (CFO); Lee Klarich (Chief Product and Technology Officer, director); Josh Paul (Chief Accounting Officer)
Market cap	~$329.9bn (818.0m shares × $403.24 at the 02 Oct 2026 close)
Revenue (FY2026, to 31 Jul 2026)	$11,480m (+24.5% YoY); subscription and support $9,200m, product $2,280m
Net income (FY2026)	$307m GAAP net income; GAAP diluted EPS $0.40; non-GAAP diluted EPS $3.84
Employees	21,921 at 31 Jul 2026, up from 16,068 a year earlier; about 4,223 of the increase came from CyberArk (FY2026 10-K)
Scale	Next-Generation Security ARR $9.10bn (+63%); remaining performance obligations $21.2bn (+34%) at 31 Jul 2026
Fiscal year	Ends 31 July (FY2027 runs to 31 Jul 2027)
Dividend	None

2. Bull Case vs Bear Case

Distilled from the full report below. Factual only, no ratings.

Bull Case

• Platform ARR surging: Next-Generation Security ARR grew 63% to $9.10bn in FY2026. Guidance is $11.075–11.175bn for FY2027, and the company targets $20bn by FY2030.
• Cash machine: Adjusted free cash flow was $4,414m in FY2026, a 38.4% margin. Management guides to 38% in FY2027 and targets 40% in FY2028.
• Broadest security portfolio: CyberArk identity security (Idira) and Chronosphere observability now sit alongside firewalls, Prisma and Cortex, giving more products to sell to the same customers.
• Contracted backlog: Remaining performance obligations rose 34% to $21.2bn, and FY2027 revenue guidance is $14.10–14.20bn (+23–24%).
• CEO bought shares: Nikesh Arora bought 68,085 shares in the open market on 27 Mar 2026 for about $10.0m. The company also bought back $1.0bn of stock in Feb 2026.

Bear Case

• GAAP profits squeezed: GAAP diluted EPS fell from $1.60 in FY2025 to $0.40 in FY2026, with GAAP losses in Q3 and Q4. GAAP operating income fell to $695m from $1,243m.
• Acquired growth: Q3 FY2026 included $388m of revenue from CyberArk and Chronosphere, so organic growth is well below the headline rate.
• Integration load: Palo Alto Networks spent about $28bn on CyberArk and Chronosphere and closed three more deals in 2026: Koi Security, Portkey and Console. Bringing them together raises execution risk.
• Share dilution: The CyberArk deal issued an estimated 111m new shares. FY2027 guidance assumes 844–847m diluted shares, against 818m outstanding at 31 Aug 2026.
• High multiples: The stock trades at about 97x the midpoint of FY2027 non-GAAP EPS guidance and about 1,000x trailing GAAP EPS, after rising from a 52-week low of $139.57.

3. What Does This Company Actually Do?

Palo Alto Networks protects corporate networks, cloud workloads, endpoints, identities and AI applications. Customers buy firewall appliances and software, then pay recurring subscriptions for threat intelligence, secure access, cloud security, security operations and identity tools. The company reports one operating segment; the disclosed revenue categories are below.

Segment / category	% of revenue	What it is
Subscription and support	80.1% ($9,200m, FY2026)	Security subscriptions (Prisma Access, Prisma Cloud, Cortex XSIAM and XDR, CyberArk/Idira identity, Chronosphere observability, threat-prevention services) plus support contracts on firewalls
Product	19.9% ($2,280m, FY2026)	Next-generation firewall hardware and software licences (Strata network security)

FY2026 figures from the Q4 FY2026 earnings release; percentages are ChartsView calculations. Network Security and Next-Generation Security revenue are not disclosed separately; the company discloses only Next-Generation Security ARR ($9.10bn).

By geography (FY2026 10-K):

• Americas: $7,679m (66.9%), of which the United States was $7,108m;
• Europe, Middle East and Africa: $2,428m (21.1%);
• Asia-Pacific and Japan: $1,373m (12.0%).

4. The Business Model

How it makes money. Most revenue is recurring. Customers sign multi-year subscription and support contracts, much of it billed up front, which is why remaining performance obligations ($21.2bn) are almost twice annual revenue and free cash flow runs well above GAAP profit. Firewall hardware sales start many relationships. The company's “platformisation” strategy then moves customers onto several of its platforms at once, sometimes with free periods to win them over from rival products.

Where the moat sits. Palo Alto Networks' advantages are:

• a large installed base of firewalls in enterprises and governments, which is costly to rip out;
• threat intelligence from its Unit 42 research and incident-response team, which feeds every product;
• breadth: network, cloud, security operations, identity and now observability from one vendor, which appeals to customers consolidating suppliers;
• scale. With $4.4bn of annual adjusted free cash flow it can keep buying start-ups, as it did with Koi Security, Portkey and Console in 2026.

What changed in 2025–2026. The company made the largest acquisitions in its history:

• Chronosphere for $3.35bn (closed 29 Jan 2026);
• CyberArk for about $25bn in cash and shares (closed 11 Feb 2026). CyberArk holders received $45.00 in cash plus 2.2005 Palo Alto Networks shares for each CyberArk share.

It added a Tel Aviv listing, launched the Idira identity platform (12 May 2026) and Prisma AIRS 3.0 for AI security (23 Mar 2026), and is building AI-agent defences with model providers.

5. Financial Health

Sources: Palo Alto Networks earnings releases (SEC 8-K exhibits), the FY2026 Form 10-K, and SEC XBRL company facts (data.sec.gov) for revenue, EPS, debt, cash flow, D&A and operating income. The fiscal year ends 31 July. Per-share figures are adjusted for the 2022 and 2024 stock splits.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022 (to 31 Jul 2022)	$5,501.5m	+29%	-$0.45	$1.26	$0.00	$3,676.8m†
FY2023 (to 31 Jul 2023)	$6,892.7m	+25%	$0.64	$2.22	$0.00	$1,991.5m†
FY2024 (to 31 Jul 2024)	$8,027.5m	+16%	$3.64	$2.84	$0.00	$963.9m†
FY2025 (to 31 Jul 2025)	$9,221.5m	+15%	$1.60	$3.34	$0.00	Nil
FY2026 (to 31 Jul 2026)	$11,480m	+24.5%	$0.40	$3.84	$0.00	$1,774m

Notes on the annual table:

• Adjusted EPS is the company's non-GAAP diluted EPS.
• FY2022 and FY2023 EPS were reported after the 3-for-1 split and are halved here for the Dec 2024 2-for-1 split. FY2024 EPS is as restated in the FY2025 release.
• FY2024 GAAP EPS ($3.64) was higher than non-GAAP EPS ($2.84) because of items that the non-GAAP measure excludes.
• † The company's own convertible senior notes (XBRL tags LongTermDebt and ConvertibleDebtCurrent). They were classified as current at these year-ends and were fully settled during FY2025.
• The FY2026 figure is CyberArk's 0% convertible notes due 2030, assumed in the acquisition and carried at fair value (XBRL ConvertibleDebtNoncurrent). Principal was $1.1bn at 31 Jul 2026 and the conversion price is $280.75 per share.

Quarterly results (most recent first)

Quarter / Half	Revenue	Adjusted EPS	GAAP EPS
Q4 FY2026 (to 31 Jul 2026)	$3,410m	$1.02	-$0.35
Q3 FY2026 (to 30 Apr 2026)	$3,002m	$0.85	-$0.22
Q2 FY2026 (to 31 Jan 2026)	$2,594m	$1.03	$0.61
Q1 FY2026 (to 31 Oct 2025)	$2,474m	$0.93	$0.47
Q4 FY2025 (to 31 Jul 2025)	$2,536m	$0.95	$0.36
FY2026 total	$11,480m	$3.84	$0.40

Notes on the quarterly table:

• Q4 FY2026 was reported on 01 Sep 2026.
• Q3 and Q4 FY2026 include CyberArk and Chronosphere; Q3 included $388m of revenue from them.
• Q4 FY2026 in more detail:
  • revenue +34%;
  • product revenue $738m;
  • subscription and support $2,672m;
  • GAAP net loss $282m.
• Quarterly EPS does not sum exactly to the full year because the share count changed sharply after the CyberArk deal.

Cash flow and balance sheet.

• Cash flow (FY2026).
  • Operating cash flow was $4,553m and purchases of property, equipment and other assets $440m, including a $91m headquarters land purchase. That gives free cash flow of $4,113m; adjusted free cash flow was $4,414m (38.4%).
  • D&A was $855m, up from $343m as acquired intangibles were amortised. GAAP operating income was $695m.
  • Cash paid for acquisitions, net of cash acquired, was $4,663m, and $18,862m of shares were issued as acquisition consideration. Share buybacks were $1,000m.
• Balance sheet at 31 Jul 2026.
  • Cash and cash equivalents were $2,514m, short-term investments $557m and long-term investments $4,835m, a total of $7,906m.
  • The only debt was the assumed CyberArk convertible notes, $1,774m at fair value.
• FY2027 guidance (01 Sep 2026):
  • revenue of $14.10–14.20bn (+23–24%);
  • Next-Generation Security ARR of $11.075–11.175bn;
  • non-GAAP operating margin of 29.5%;
  • non-GAAP EPS of $4.16–4.19;
  • adjusted free cash flow margin of 38.0%.
  For Q1 FY2027 the company guides to revenue of $3.300–3.310bn and non-GAAP EPS of $0.96–0.98.

6. Valuation & Market Data

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$329.9bn (818.0m shares × $403.24 at the 02 Oct 2026 close)
Enterprise value	~$328.6bn = market cap ~$329.9bn + total debt ~$1.77bn (CyberArk convertible notes $1,774m; no current debt) − cash and short-term investments ~$3.07bn ($2,514m + $557m), per the 31 Jul 2026 balance sheet. Long-term investments of $4,835m are excluded; including them would give ~$323.7bn.
Trailing P/E (GAAP)	~1,008x ($403.24 / FY2026 GAAP diluted EPS of $0.40). GAAP earnings are depressed by acquisition costs and amortisation of acquired intangibles. On FY2026 non-GAAP EPS of $3.84 the multiple is ~105x.
P/E (forward)	~96.6x ($403.24 / $4.175, the midpoint of FY2027 non-GAAP EPS guidance of $4.16–4.19 issued 01 Sep 2026)
P/S (TTM)	~28.7x (market cap / FY2026 revenue of $11,480m)
EV/EBITDA (TTM)	~212x (EV ~$328.6bn / FY2026 EBITDA ~$1.55bn). EBITDA = GAAP operating income $695m + D&A $855m (cash flow statement, XBRL DepreciationDepletionAndAmortization). GAAP operating income was cut by CyberArk and Chronosphere deal and integration costs, so this multiple is distorted.
P/FCF	~80x (market cap ~$329.9bn / FY2026 FCF ~$4.11bn). FCF = operating cash flow $4,553m − capex $440m, per the FY2026 cash flow statement. On adjusted FCF of $4,414m the multiple is ~75x.
52-week high	$409.50 (intraday, 02 Oct 2026)
52-week low	$139.57 (intraday, 24 Feb 2026)
Short interest (% of float)	2.71% (21.87m shares, settlement date 15 Sep 2026, per MarketBeat)
Days to cover	3.0 (MarketBeat, 15 Sep 2026); StockAnalysis shows 3.39 on a different average-volume basis
Dividend yield	Nil (no dividend)

Price-based metrics use the 02 Oct 2026 close. The 52-week range is from Yahoo Finance daily bars. For live prices see ChartsView Live Charts.

7. What Are They Building

Security for AI and AI-powered defence.

• Unit 42 Continuous Frontier AI Defense: launched on 22 Sep 2026. The service uses Anthropic's Mythos and OpenAI's GPT-5.6-Cyber models to find and fix weaknesses in customer environments on a continuous basis.
• Frontier AI Critical Defense Program: announced on 19 Aug 2026.
• Prisma AIRS 3.0: launched on 23 Mar 2026 to protect AI models, apps and agents.

Identity security (Idira). CyberArk's privileged-access and identity products were relaunched as the Idira platform on 12 May 2026. It is now the third platform, alongside Network & AI Security and Cortex.

Cortex and agentic operations. Chronosphere brings observability data into Cortex, and Console, bought on 01 Sep 2026, adds AI-native agentic operations. The aim is security operations in which AI agents investigate and resolve incidents. Koi Security (closed 14 Apr 2026) and Portkey (closed 29 May 2026) were also folded into the product lines.

Go-to-market. A global strategic alliance with NTT DATA was announced on 20 Aug 2026.

8. Competitive Landscape

Peer	Market cap (Oct 2026)	Key 2025 metric
CrowdStrike (CRWD)	~$276.5bn	Q2 FY2027 ending ARR $5.84bn (+25%); revenue $1.47bn (+26%) (CrowdStrike 8-K press release, 26 Aug 2026)
Fortinet (FTNT)	~$132.8bn	Q2 2026 revenue $2.05bn (+26%); billings $2.37bn (+33%) (Fortinet Q2 2026 results)
Zscaler (ZS)	~$32.1bn	Q4 FY2026 ARR $3,771m (+25%, or +20% excluding Red Canary) (Zscaler 8-K press release)
Cisco Systems (CSCO)	~$442.4bn (whole company)	Q4 FY2026 security revenue +14% YoY; total quarterly revenue $17.3bn (Cisco 8-K press release)
Check Point Software (CHKP)	~$13.3bn	Q2 2026 revenue $674m (+1%); security subscriptions $333m (+12%) (Check Point press release)

Market caps are at the 02 Oct 2026 close from Yahoo Finance and StockAnalysis. Microsoft also competes in endpoint, identity and cloud security, and CyberArk's identity business now competes with Okta and others.

9. Leadership and Ownership

Nikesh Arora is Chairman and CEO. His open-market purchase of 68,085 shares at about $146.88 on 27 Mar 2026 (about $10.0m) is the largest insider buy of the year, and no Arora sales were found in the past twelve months. Dipak Golechha is CFO, and Lee Klarich, Chief Product and Technology Officer, sits on the board. Recent insider activity has been mostly selling under 10b5-1 plans as the shares hit records.

Name	Date	Type	Shares	Price	Value	Plan Type
Lee Klarich (CPTO, director)	30 Sep 2026	Gift	25,000	n/a	n/a	n/a
Dipak Golechha (CFO)	24 Sep 2026	Sale	27,500	~$391.61 (avg)	~$10.77m	10b5-1 (adopted 25 Jun 2026)
James Goetz (director)	17 Sep 2026	Sale	20,000	~$376.68	~$7.53m	Not under 10b5-1
John Key (director)	14 Sep 2026	Sale	2,500	$376.03	~$0.94m	Not stated
Josh Paul (CAO)	25 Aug 2026	Sale	900	$353.77	~$0.32m	10b5-1 (adopted 17 Sep 2025)
Dipak Golechha (CFO)	23 Jun 2026	Sale	5,000	$289.57	~$1.45m	Not stated
Lee Klarich (CPTO, director)	22 May 2026	Sale	62,904	~$258.65 (avg)	~$16.27m	10b5-1 (adopted 11 Dec 2025)
Nikesh Arora (Chairman and CEO)	27 Mar 2026	Open-market purchase	68,085	~$146.88	~$10.0m	Discretionary

Sources: SEC Form 4 filings on EDGAR, listed via OpenInsider. RSU vesting and tax withholdings are not shown.

10. Risks and Challenges

• Integration (Operational): CyberArk was the company's largest acquisition, and Chronosphere, Koi Security, Portkey and Console followed within months. Keeping customers and staff while merging products, sales teams and systems is a substantial task.
• Competition (Competitive): CrowdStrike, Fortinet, Zscaler, Cisco and Microsoft all push their own platforms. Platformisation deals that offer free periods to win customers can delay revenue and pressure pricing.
• Dilution and stock-based pay (Financial): About 111m shares were issued for CyberArk, and stock-based compensation is excluded from non-GAAP earnings. The 2030 convertible notes add potential dilution above $280.75 a share.
• Product vulnerabilities (Operational): As a security vendor, a serious flaw in its firewalls or software, or a breach of its own systems, would damage customer trust and could invite regulatory scrutiny.
• Geopolitical exposure (Geopolitical): A large share of research and development, including CyberArk's and Koi Security's teams, is in Israel, and the shares are now listed in Tel Aviv. Regional conflict could disrupt operations.
• IT budgets and firewall cycles (Macro): Product revenue depends on firewall refresh cycles and enterprise capital budgets, which can be delayed in a downturn.

11. Recent Developments

• 24 Sep 2026 — CFO share sale. CFO Dipak Golechha sold 27,500 shares at an average of about $391.61 under a 10b5-1 plan. The same day CEO Nikesh Arora told CNBC that slowing AI development is “unrealistic”.
• 22 Sep 2026 — Frontier AI defence service. The company launched Unit 42 Continuous Frontier AI Defense, using Anthropic's Mythos and OpenAI's GPT-5.6-Cyber models.
• 10 Sep 2026 — Annual report and investor conference. The FY2026 Form 10-K was filed, and management presented at the Goldman Sachs Communacopia + Technology Conference.
• 01 Sep 2026 — FY2026 results and FY2027 guidance. Q4 revenue rose 34% to $3,410m and Next-Generation Security ARR 63% to $9.10bn. FY2027 guidance is revenue of $14.10–14.20bn and non-GAAP EPS of $4.16–4.19.
• 01 Sep 2026 — Console acquired. Palo Alto Networks bought Console, an AI-native agentic operations platform, to extend Cortex. Terms were not disclosed.
• 20 Aug 2026 — NTT DATA alliance. A global strategic alliance with NTT DATA was announced.
• 19 Aug 2026 — Frontier AI Critical Defense Program. A program to help customers defend against threats from frontier AI models was launched.
• 12 May 2026 — Idira identity platform. CyberArk's products were relaunched under the Idira brand.

12. Key Dates Coming Up

• Expected 18 Nov 2026 — Q1 FY2027 results after the US market close. The date comes from market calendars and the company has not confirmed it; Q1 FY2026 was reported on 19 Nov 2025. Guidance is revenue of $3.300–3.310bn and non-GAAP EPS of $0.96–0.98.
• Expected Dec 2026 — Annual stockholders' meeting; the 2025 meeting was held on 09 Dec 2025.
• 31 Dec 2026 — Expiry of the $1.0bn share repurchase authorisation approved on 10 Mar 2026.
• Expected Feb 2027 — Q2 FY2027 results.

Macro events are on the ChartsView Economic Calendar, and you can discuss Palo Alto Networks on the ChartsView Forum.

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