(PANW) Palo Alto Networks - Overview
Stock: Firewalls, Cloud Security, AI Protection, Threat Intelligence
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 41.7% |
| Relative Tail Risk | -2.14% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.39 |
| Alpha | -32.36 |
| Character TTM | |
|---|---|
| Beta | 1.172 |
| Beta Downside | 1.023 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.49% |
| CAGR/Max DD | 0.81 |
Description: PANW Palo Alto Networks January 27, 2026
Palo Alto Networks (NASDAQ: PANW) is a global cybersecurity vendor that sells a breadth of cloud-native and AI-enhanced solutions-including the Prisma Access SASE platform, Strata Cloud Manager, Prisma AIR S, VM-Series and CN-Series virtual firewalls, and the Cortex suite (XSIAM, XDR, XSOAR, Xpanse, and Unit 42 threat-intelligence services). Its offerings span subscription-based threat prevention, endpoint protection, DNS security, SaaS security, and professional services, and are delivered to enterprises, service providers, and government customers across all major industry verticals.
Recent performance metrics (FY 2025) show a 18 % year-over-year revenue increase to **$5.1 billion**, driven primarily by a **34 % rise in subscription annual recurring revenue (ARR) to $4.2 billion**. GAAP earnings per share for Q4 2025 were **$0.71**, reflecting a 12 % improvement in operating margin versus the prior year. The company’s **SASE (Secure Access Service Edge) bookings grew 42 % YoY**, positioning it ahead of the sector’s average growth rate of roughly 30 %.
Macro-level drivers reinforce this momentum: global cybersecurity spending is projected to reach **$250 billion by 2027**, expanding at a **12 % compound annual growth rate**, while adoption of AI-driven security orchestration (e.g., Cortex XSIAM) is accelerating as enterprises seek to offset talent shortages and reduce mean-time-to-detect. These trends suggest a favorable tailwind for PANW’s subscription-heavy business model.
For a deeper, data-rich assessment of PANW’s valuation dynamics, you may find ValueRay’s analyst framework useful as a next step.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 1.12b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.17 > 0.02 and ΔFCF/TA 1.63 > 1.0 |
| NWC/Revenue: -1.13% < 20% (prev -14.00%; Δ 12.87% < -1%) |
| CFO/TA 0.17 > 3% & CFO 3.98b > Net Income 1.12b |
| Net Debt (-2.72b) to EBITDA (1.99b): -1.37 < 3 |
| Current Ratio: 0.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (709.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 73.47% > 18% (prev 0.74%; Δ 7273 % > 0.5%) |
| Asset Turnover: 43.53% > 50% (prev 40.68%; Δ 2.85% > 0%) |
| Interest Coverage Ratio: 820.1 > 6 (EBITDA TTM 1.99b / Interest Expense TTM 2.00m) |
Altman Z'' 1.47
| A: -0.00 (Total Current Assets 7.31b - Total Current Liabilities 7.42b) / Total Assets 23.54b |
| B: 0.12 (Retained Earnings 2.82b / Total Assets 23.54b) |
| C: 0.07 (EBIT TTM 1.64b / Avg Total Assets 21.96b) |
| D: 0.58 (Book Value of Equity 8.66b / Total Liabilities 14.87b) |
| Altman-Z'' Score: 1.47 = BB |
Beneish M -3.36
| DSRI: 0.60 (Receivables 1.34b/1.94b, Revenue 9.56b/8.29b) |
| GMI: 1.01 (GM 73.47% / 74.18%) |
| AQI: 1.00 (AQ_t 0.66 / AQ_t-1 0.66) |
| SGI: 1.15 (Revenue 9.56b / 8.29b) |
| TATA: -0.12 (NI 1.12b - CFO 3.98b) / TA 23.54b) |
| Beneish M-Score: -3.36 (Cap -4..+1) = AA |
What is the price of PANW shares?
Over the past week, the price has changed by -9.97%, over one month by -14.28%, over three months by -24.63% and over the past year by -14.97%.
Is PANW a buy, sell or hold?
- StrongBuy: 26
- Buy: 11
- Hold: 13
- Sell: 0
- StrongSell: 2
What are the forecasts/targets for the PANW price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 226.7 | 42.3% |
| Analysts Target Price | 226.7 | 42.3% |
| ValueRay Target Price | 173.2 | 8.7% |
PANW Fundamental Data Overview February 07, 2026
P/E Forward = 40.1606
P/S = 11.4029
P/B = 12.4495
P/EG = 1.3558
Revenue TTM = 9.56b USD
EBIT TTM = 1.64b USD
EBITDA TTM = 1.99b USD
Long Term Debt = 346.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 79.2m USD (from shortTermDebt, two quarters ago)
Debt = 346.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -2.72b USD (from netDebt column, last quarter)
Enterprise Value = 105.11b USD (108.97b + Debt 346.0m - CCE 4.21b)
Interest Coverage Ratio = 820.1 (Ebit TTM 1.64b / Interest Expense TTM 2.00m)
EV/FCF = 26.69x (Enterprise Value 105.11b / FCF TTM 3.94b)
FCF Yield = 3.75% (FCF TTM 3.94b / Enterprise Value 105.11b)
FCF Margin = 41.20% (FCF TTM 3.94b / Revenue TTM 9.56b)
Net Margin = 11.69% (Net Income TTM 1.12b / Revenue TTM 9.56b)
Gross Margin = 73.47% ((Revenue TTM 9.56b - Cost of Revenue TTM 2.54b) / Revenue TTM)
Gross Margin QoQ = 74.21% (prev 73.23%)
Tobins Q-Ratio = 4.47 (Enterprise Value 105.11b / Total Assets 23.54b)
Interest Expense / Debt = 0.58% (Interest Expense 2.00m / Debt 346.0m)
Taxrate = 18.93% (78.0m / 412.0m)
NOPAT = 1.33b (EBIT 1.64b * (1 - 18.93%))
Current Ratio = 0.99 (Total Current Assets 7.31b / Total Current Liabilities 7.42b)
Debt / Equity = 0.04 (Debt 346.0m / totalStockholderEquity, last quarter 8.66b)
Debt / EBITDA = -1.37 (Net Debt -2.72b / EBITDA 1.99b)
Debt / FCF = -0.69 (Net Debt -2.72b / FCF TTM 3.94b)
Total Stockholder Equity = 7.52b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.09% (Net Income 1.12b / Total Assets 23.54b)
RoE = 14.85% (Net Income TTM 1.12b / Total Stockholder Equity 7.52b)
RoCE = 20.84% (EBIT 1.64b / Capital Employed (Equity 7.52b + L.T.Debt 346.0m))
RoIC = 17.15% (NOPAT 1.33b / Invested Capital 7.75b)
WACC = 10.20% (E(108.97b)/V(109.32b) * Re(10.23%) + D(346.0m)/V(109.32b) * Rd(0.58%) * (1-Tc(0.19)))
Discount Rate = 10.23% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 81.65 | Cagr: 0.67%
[DCF Debug] Terminal Value 73.63% ; FCFF base≈3.59b ; Y1≈4.23b ; Y5≈6.46b
Fair Price DCF = 115.3 (EV 76.13b - Net Debt -2.72b = Equity 78.85b / Shares 684.0m; r=10.20% [WACC]; 5y FCF grow 18.84% → 2.90% )
EPS Correlation: 27.46 | EPS CAGR: 13.42% | SUE: 0.58 | # QB: 0
Revenue Correlation: 98.07 | Revenue CAGR: 18.31% | SUE: 1.08 | # QB: 2
EPS next Quarter (2026-04-30): EPS=0.44 | Chg30d=+0.000 | Revisions Net=-2 | Analysts=18
EPS current Year (2026-07-31): EPS=3.85 | Chg30d=+0.001 | Revisions Net=+42 | Growth EPS=+15.3% | Growth Revenue=+14.2%
EPS next Year (2027-07-31): EPS=2.37 | Chg30d=+0.002 | Revisions Net=-1 | Growth EPS=+20.7% | Growth Revenue=+13.3%