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NASDAQ · PANW

Palo Alto Networks

Enterprise cybersecurity platforms

Earnings release date
2026.09.01
Market data date
2026.10.13
Last checked
2026.10.13
PUBLICATION GATEOfficial Facts MatchedThe key facts shown on this page match issuer IR/SEC materials and market data.
View Matched Facts
Official sources and filing dateMatchedRevenueMatchedTTM revenueMatchedShares outstandingMatchedClosing price and market-data dateMatched
01

EARNINGS & GROWTH

Revenue · Profitability · Key Metrics

Revenue$3.410B
YoY+$0.874B · +34%
QoQ+$0.408B · +13.6%
Subscription + Support Revenue$2.672B
YoY+$0.710B · +36.2%
QoQ+$0.264B · +11.0%
NGS ARR$9.10B
YoY+$3.52B · +63%
QoQ+$0.97B · +11.9%
Customers with >$5M NGS ARR223
YoY+45%*
QoQ+28 · +14.4%

* Large NGS ARR customer counts and growth rates exclude CyberArk and Chronosphere. The comparable prior-year customer count was not disclosed.

02

EARNINGS ANALYSIS

Stock Analysis · Growth Drivers · Business Model

Revenue

Acquisitions Broadened Reported Growth

Acquired businesses added to reported revenue growth while demand in the existing business also remained solid. The quarter is best understood by separating acquisition-driven growth from the underlying performance of the existing business.

Subscription + Support Revenue

The Recurring Revenue Base Kept Expanding

Subscription and support remained a major growth driver, reinforcing PANW’s recurring revenue base. Acquired Identity and Observability businesses also contributed, so headline growth should not be interpreted as a pure measure of the existing business.

NGS ARR

Platform Demand Strengthened

NGS ARR growth and platformization activity continued to reinforce expansion within existing enterprise customers. Reported NGS ARR also includes acquisition effects, so it should be distinguished from organic growth in the existing business.

Customers with >$5M NGS ARR

Large-Customer Expansion Continued

The large-NGS-ARR customer base continued to expand, while major wins showed repeated cross-sell across multiple platforms. This provides an important operating signal of broader security adoption inside large enterprise customers.

03

VALUATION · RETURN CALCULATOR

P/E · Multiples · Long-Term Investing

Current market cap$324.8B

$397.03 × 0.82B

TTM revenue$11.480B
See calculation

FY2026 Q1 revenue $2.474B
+ FY2026 Q2 revenue $2.594B
+ FY2026 Q3 revenue $3.002B
+ FY2026 Q4 revenue $3.410B
= TTM $11.480B

Current P/S28.3x
Current market cap
$324.8B
TTM revenue
$11.480B

$324.8B ÷ $11.480B = 28.3x

Current P/E1057.9x
Current market cap
$324.8B
GAAP TTM net income
$0.307B

$324.8B ÷ $0.307B = 1057.9x

GAAP TTM net margin 2.7%

TTM vs. Annualized Revenue

Trailing twelve monthsTTM revenue$11.480B
FY2026 Q4Annualized latest-quarter revenue$13.640BQuarter revenue $3.410B ×4
FY2027 Q1Annualized guidance midpoint$13.220BGuidance revenue midpoint $3.305B ×4

Recent-quarter and guidance annualizations are simple quarter-revenue ×4 comparisons, not forecasts for the next 12 months.

View high-point comparison
HIGH-POINT COMPARISON

All-Time Closing High

2026-10-06
Sources and calculations checked
Peak close$419.91
Market cap at peak$343.5B
P/S at peak29.9x
P/E at peak1118.8x
Trailing twelve months at the peakTTM revenue at the peak$11.480B

FY2026 Q4Annualized latest quarter at the peak$13.640B

Quarter revenue $3.410B ×4

FY2027 Q1Annualized public guidance at the peak$13.220B

Guidance revenue midpoint $3.305B ×4

At peakCurrentChange
TTM revenue$11.480B$11.480B+0.0%
Latest quarter$3.410B$3.410B+0.0%
Public guidance$3.305B$3.305B+0.0%

Only information available at the peak is used. The comparison uses fiscal fourth-quarter 2026 results and the share count available on October 6, 2026. Later results are not applied retroactively.

Key Variables at the Peak

Enterprise security spending, platform adoption and acquisition integration were important business variables.

Growth and Profitability Conditions Implied by the Peak Multiple

The peak multiple was consistent with expectations for continued expansion of PANW's recurring-revenue security platform.

Close $419.91 × 0.82B shares outstanding = approximately $343.5B market cap at the peak.

CURRENT MARKET CAP REQUIREMENTS

Requirements Implied by the Current Market Cap

Current Market Cap Basis
Implied 2030 Revenue CAGR26.0% annuallyTTM revenue growth +24.5% YoY
Current market cap$324.8B
Assumed 2030 P/S11.2x14.6% assumed net margin × 76.7x assumed P/E
Required 2030 revenue$28.9B

This is the 2030 revenue implied by the current market cap under the displayed valuation assumptions.

Share-count changes and dividends are not included in this calculation.

Conditional Business Scenarios

Conservative · Base · Optimistic
PANW conditional assumptions
Current TTM$11.480B
Latest-quarter annualized$13.640B
Guidance-midpoint annualized$13.220B
Conservative
Assumed 2030 revenue$19.512BRevenue CAGR from TTM 14.2%
CAGR from annualized latest-quarter revenue 9.4%CAGR from annualized guidance midpoint 10.2%
Assumed 2030 net margin
14.2%Current 2.7%
Assumed 2030 P/E
73.0xCurrent 1057.9x
Converted P/S
10.4x
Conditional Shareholder Return Bridge
Conditional Market Cap$202.1BVs. current -37.8%Conditional market cap is calculated from the revenue, net margin, and multiple assumptions.
Conditional Projected Shares0.86BVs. current +4.6%Reflects company-specific share-count changes, including repurchases and issuance.
Conditional Implied Share Value$236.12Current $397.03 · -40.5%Conditional market cap and conditional projected shares determine implied share value.
Conditional Total Shareholder Return-40.5%Implied Share Value Change -40.5% · Dividend Contribution +0.0 ppAnnualized -12.2%
View Conditional Shareholder Return Details

Shows the relationship among market cap, share count, implied share value, and shareholder return.

Implied Share Value Change
Market Cap
$324.8B$202.1B
Shares
0.82B0.86B
Implied Share Value Change
-40.5%
Shareholder Return Components
Implied Share Value Change
-40.5%
Dividend Contribution
+0.0 pp
Conditional Total Shareholder Return
-40.5%

Enterprise security demand and the large-customer base hold, while platform adoption and cross-sell across product families progress relatively slowly.

Base
Assumed 2030 revenue$20.012BRevenue CAGR from TTM 14.9%
CAGR from annualized latest-quarter revenue 10.1%CAGR from annualized guidance midpoint 10.9%
Assumed 2030 net margin
14.6%Current 2.7%
Assumed 2030 P/E
76.7xCurrent 1057.9x
Converted P/S
11.2x
Conditional Shareholder Return Bridge
Conditional Market Cap$224.6BVs. current -30.8%Conditional market cap is calculated from the revenue, net margin, and multiple assumptions.
Conditional Projected Shares0.86BVs. current +4.7%Reflects company-specific share-count changes, including repurchases and issuance.
Conditional Implied Share Value$262.26Current $397.03 · -33.9%Conditional market cap and conditional projected shares determine implied share value.
Conditional Total Shareholder Return-33.9%Implied Share Value Change -33.9% · Dividend Contribution +0.0 ppAnnualized -9.8%
View Conditional Shareholder Return Details

Shows the relationship among market cap, share count, implied share value, and shareholder return.

Implied Share Value Change
Market Cap
$324.8B$224.6B
Shares
0.82B0.86B
Implied Share Value Change
-33.9%
Shareholder Return Components
Implied Share Value Change
-33.9%
Dividend Contribution
+0.0 pp
Conditional Total Shareholder Return
-33.9%

Large-customer expansion and platform adoption continue, and cross-sell across security products broadens gradually.

Optimistic
Assumed 2030 revenue$20.512BRevenue CAGR from TTM 15.6%
CAGR from annualized latest-quarter revenue 10.7%CAGR from annualized guidance midpoint 11.6%
Assumed 2030 net margin
15.0%Current 2.7%
Assumed 2030 P/E
80.5xCurrent 1057.9x
Converted P/S
12.1x
Conditional Shareholder Return Bridge
Conditional Market Cap$248.3BVs. current -23.6%Conditional market cap is calculated from the revenue, net margin, and multiple assumptions.
Conditional Projected Shares0.86BVs. current +4.7%Reflects company-specific share-count changes, including repurchases and issuance.
Conditional Implied Share Value$289.76Current $397.03 · -27.0%Conditional market cap and conditional projected shares determine implied share value.
Conditional Total Shareholder Return-27.0%Implied Share Value Change -27.0% · Dividend Contribution +0.0 ppAnnualized -7.6%
View Conditional Shareholder Return Details

Shows the relationship among market cap, share count, implied share value, and shareholder return.

Implied Share Value Change
Market Cap
$324.8B$248.3B
Shares
0.82B0.86B
Implied Share Value Change
-27.0%
Shareholder Return Components
Implied Share Value Change
-27.0%
Dividend Contribution
+0.0 pp
Conditional Total Shareholder Return
-27.0%

Large customers adopt multiple platforms and expand their use of products more quickly, strengthening cross-sell across product families.

This analysis presents long-term valuation scenarios. Scenario inputs are conditional assumptions and are not company guidance or market consensus.

Conditional Shareholder Return Calculator

P/E and P/S are linked through the assumed net margin.

Conditional Shareholder Return Bridge
Conditional Market Cap$224.6BVs. current -30.8%Conditional market cap is calculated from the revenue, net margin, and multiple assumptions.
Conditional Projected Shares0.86BVs. current +4.7%Reflects company-specific share-count changes, including repurchases and issuance.
Conditional Implied Share Value$262.26Current $397.03 · -33.9%Conditional market cap and conditional projected shares determine implied share value.
Conditional Total Shareholder Return-33.9%Implied Share Value Change -33.9% · Dividend Contribution +0.0 ppAnnualized -9.8%
View Conditional Shareholder Return Details

Shows the relationship among market cap, share count, implied share value, and shareholder return.

Implied Share Value Change
Market Cap
$324.8B$224.6B
Shares
0.82B0.86B
Implied Share Value Change
-33.9%
Shareholder Return Components
Implied Share Value Change
-33.9%
Dividend Contribution
+0.0 pp
Conditional Total Shareholder Return
-33.9%

This is a conditional arithmetic result based on the displayed assumptions, not a forecast of future share price.

Original Sources

PANW FY2026 Form 10-K ↗

Official Palo Alto Networks IR/SEC materials and market data.

Methodology, Terms and Operating Principles

What is GAAP?

GAAP refers to U.S. generally accepted accounting principles. GAAP financial results include items such as stock-based compensation and amortization that companies may adjust out of non-GAAP measures.

Company-Specific Valuation Assumptions

VALUFOUR does not apply the same valuation multiples to every company. Conditional scenarios are analytical assumptions based on each company’s business model, revenue scale, growth rate, profitability, durability of growth and historical valuation range. They are not forecasts or recommendations.

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NGS ARR

NGS ARR is an operating metric for the annualized amount allocated to next-generation security product, subscription and support offerings in active contracts at period end. It excludes hardware products, legacy attached subscriptions and support, and professional services. It differs from GAAP revenue, deferred revenue and RPO, and changes with contract starts, ends and renewals; it is not a forecast of future revenue.

Subscription and support revenue

PANW's reported revenue category for revenue recognized from subscription and support services.

Platformization

PANW's platformization strategy centers on customers consolidating and expanding security functions across platforms such as Network Security, Cortex, Idira and Observability.

Diluted shares

Employee share issuance can increase the share count, while repurchases can reduce it. Any additional shares from convertible notes depend on conversion and settlement terms.