PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis

NASDAQ:PANW • US6974351057

152.35 USD
-11.15 (-6.82%)
At close: Feb 18, 2026
152.8 USD
+0.45 (+0.3%)
Pre-Market: 2/19/2026, 4:17:25 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, PANW scores 5 out of 10 in our fundamental rating. PANW was compared to 276 industry peers in the Software industry. Both the profitability and the financial health of PANW get a neutral evaluation. Nothing too spectacular is happening here. PANW shows excellent growth, but is valued quite expensive already. These ratings could make PANW a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • PANW had positive earnings in the past year.
  • PANW had a positive operating cash flow in the past year.
  • In multiple years PANW reported negative net income over the last 5 years.
  • PANW had a positive operating cash flow in each of the past 5 years.
PANW Yearly Net Income VS EBIT VS OCF VS FCFPANW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • PANW's Return On Assets of 4.75% is fine compared to the rest of the industry. PANW outperforms 71.01% of its industry peers.
  • With a decent Return On Equity value of 12.89%, PANW is doing good in the industry, outperforming 76.09% of the companies in the same industry.
  • PANW's Return On Invested Capital of 5.58% is fine compared to the rest of the industry. PANW outperforms 73.19% of its industry peers.
  • PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 10.64%.
  • The last Return On Invested Capital (5.58%) for PANW is above the 3 year average (4.95%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.75%
ROE 12.89%
ROIC 5.58%
ROA(3y)6.91%
ROA(5y)2.74%
ROE(3y)29.83%
ROE(5y)-23.25%
ROIC(3y)4.95%
ROIC(5y)N/A
PANW Yearly ROA, ROE, ROICPANW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • PANW has a better Profit Margin (11.69%) than 71.74% of its industry peers.
  • PANW has a better Operating Margin (13.24%) than 78.62% of its industry peers.
  • The Gross Margin of PANW (73.47%) is comparable to the rest of the industry.
  • PANW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.24%
PM (TTM) 11.69%
GM 73.47%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.21%
GM growth 5Y0.76%
PANW Yearly Profit, Operating, Gross MarginsPANW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • PANW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • PANW has more shares outstanding than it did 1 year ago.
  • PANW has more shares outstanding than it did 5 years ago.
  • There is no outstanding debt for PANW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
PANW Yearly Shares OutstandingPANW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
PANW Yearly Total Debt VS Total AssetsPANW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • PANW has an Altman-Z score of 5.03. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.03, PANW is in the better half of the industry, outperforming 77.90% of the companies in the same industry.
  • PANW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.03
ROIC/WACC0.51
WACC10.94%
PANW Yearly LT Debt VS Equity VS FCFPANW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • PANW has a Current Ratio of 0.99. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • PANW has a Current ratio of 0.99. This is in the lower half of the industry: PANW underperforms 75.36% of its industry peers.
  • PANW has a Quick Ratio of 0.99. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.99, PANW is doing worse than 74.28% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
PANW Yearly Current Assets VS Current LiabilitesPANW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.46% over the past year.
  • PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
  • Looking at the last year, PANW shows a quite strong growth in Revenue. The Revenue has grown by 14.87% in the last year.
  • The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.63% on average over the next years. This is quite good.
  • PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.08% yearly.
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
PANW Yearly Revenue VS EstimatesPANW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
PANW Yearly EPS VS EstimatesPANW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 41.06, PANW can be considered very expensive at the moment.
  • PANW's Price/Earnings ratio is in line with the industry average.
  • PANW is valuated expensively when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 34.44, PANW can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PANW.
  • When comparing the Price/Forward Earnings ratio of PANW to the average of the S&P500 Index (28.16), we can say PANW is valued slightly more expensively.
Industry RankSector Rank
PE 41.06
Fwd PE 34.44
PANW Price Earnings VS Forward Price EarningsPANW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as PANW.
  • 63.04% of the companies in the same industry are more expensive than PANW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 28.77
EV/EBITDA 62.48
PANW Per share dataPANW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PANW does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.78% in the coming years.
PEG (NY)2.29
PEG (5Y)1.26
EPS Next 2Y15.08%
EPS Next 3Y14.78%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for PANW!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

PALO ALTO NETWORKS INC

NASDAQ:PANW (2/18/2026, 8:00:02 PM)

Premarket: 152.8 +0.45 (+0.3%)

152.35

-11.15 (-6.82%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners84.5%
Inst Owner Change-1.17%
Ins Owners0.4%
Ins Owner Change5.79%
Market Cap106.19B
Revenue(TTM)9.22B
Net Income(TTM)1.12B
Analysts79.67
Price Target234.35 (53.82%)
Short Float %6.7%
Short Ratio5.67
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.86%
Min EPS beat(2)2.41%
Max EPS beat(2)5.31%
EPS beat(4)4
Avg EPS beat(4)2.93%
Min EPS beat(4)1.85%
Max EPS beat(4)5.31%
EPS beat(8)8
Avg EPS beat(8)4.22%
EPS beat(12)12
Avg EPS beat(12)8.99%
EPS beat(16)16
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.16%
Revenue beat(12)0
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.01%
PT rev (1m)1.17%
PT rev (3m)4.58%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
Industry RankSector Rank
PE 41.06
Fwd PE 34.44
P/S 11.11
P/FCF 28.77
P/OCF 26.7
P/B 12.25
P/tB 31.46
EV/EBITDA 62.48
EPS(TTM)3.71
EY2.44%
EPS(NY)4.42
Fwd EY2.9%
FCF(TTM)5.3
FCFY3.48%
OCF(TTM)5.71
OCFY3.75%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)2.29
PEG (5Y)1.26
Graham Number32.21
Profitability
Industry RankSector Rank
ROA 4.75%
ROE 12.89%
ROCE 7.85%
ROIC 5.58%
ROICexc 7.55%
ROICexgc 13.59%
OM 13.24%
PM (TTM) 11.69%
GM 73.47%
FCFM 38.63%
ROA(3y)6.91%
ROA(5y)2.74%
ROE(3y)29.83%
ROE(5y)-23.25%
ROIC(3y)4.95%
ROIC(5y)N/A
ROICexc(3y)6.58%
ROICexc(5y)N/A
ROICexgc(3y)15.61%
ROICexgc(5y)N/A
ROCE(3y)6.97%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.21%
GM growth 5Y0.76%
F-Score5
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 82.09%
Cap/Sales 2.99%
Interest Coverage 250
Cash Conversion 246.45%
Profit Quality 330.41%
Current Ratio 0.99
Quick Ratio 0.99
Altman-Z 5.03
F-Score5
WACC10.94%
ROIC/WACC0.51
Cap/Depr(3y)59.63%
Cap/Depr(5y)58.33%
Cap/Sales(3y)2.25%
Cap/Sales(5y)2.6%
Profit Quality(3y)341.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.85%
EBIT Next 3Y19.13%
EBIT Next 5YN/A
FCF growth 1Y26.27%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y29.69%
OCF growth 3Y23.25%
OCF growth 5Y29.11%

PALO ALTO NETWORKS INC / PANW FAQ

What is the ChartMill fundamental rating of PALO ALTO NETWORKS INC (PANW) stock?

ChartMill assigns a fundamental rating of 5 / 10 to PANW.


What is the valuation status for PANW stock?

ChartMill assigns a valuation rating of 2 / 10 to PALO ALTO NETWORKS INC (PANW). This can be considered as Overvalued.


What is the profitability of PANW stock?

PALO ALTO NETWORKS INC (PANW) has a profitability rating of 5 / 10.


What are the PE and PB ratios of PALO ALTO NETWORKS INC (PANW) stock?

The Price/Earnings (PE) ratio for PALO ALTO NETWORKS INC (PANW) is 41.06 and the Price/Book (PB) ratio is 12.25.


What is the expected EPS growth for PALO ALTO NETWORKS INC (PANW) stock?

The Earnings per Share (EPS) of PALO ALTO NETWORKS INC (PANW) is expected to grow by 17.91% in the next year.