Palo Alto Networks Inc(PANW)Stock Analysis
AI analysis on 2,800+ stocks →Deep AI analysis on 2,800+ stocks →13F Pro Quality Score
Rank #517 of 2,879 stocksTOP 25%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
PANW Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Palo Alto Networks Inc (PANW), a Technology sector company. 13F Pro's AI-powered ranking engine scores PANW at 66.5/100 on a 32-signal composite quality model, placing it at rank #517 of 2,879 stocks — the top 25% of the AI-ranked universe. PANW scores in the top quartile across institutional flow (94.4), free cash flow (87.7), revenue scale (86.9). Areas of concern include earnings quality (8.1), which score below median versus the broader universe. Shareholder dilution risk is elevated at 12.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), Palo Alto Networks Inc reports quarterly revenue of $3.0B, net income of $-177.0M, free cash flow of $788.0M. Top institutional holders of PANW by reported 13-F value include Swedbank AB, Assenagon Asset Management S.A., OFI INVEST ASSET MANAGEMENT, based on the most recent SEC filings. PANW trades on the Nasdaq exchange and files with the SEC under CIK 1327567. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PANW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Palo Alto Networks Inc directly from SEC EDGAR. Palo Alto Networks Inc's 13F Pro composite quality score has ranged between 8 and 85 since 2021, currently 66.5 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving PANW's Business? Latest 10-Q Breakdown
✓ 28/28 datapoints verifiedAI-extracted from Palo Alto Networks Inc's 10-Q filed 2026-06-03 — Q3 FY2026 (three months ended April 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Palo Alto Networks posted 31% YoY revenue growth to $3.0B in Q3 FY2026, but swung to a net loss of $177M due to CyberArk acquisition integration costs and $21.1B acquisition spending.
Biggest Revenue Drivers
Total revenue: $3.0B+31% YoY
Increased demand for subscription and support offerings from end-customers and impact of CyberArk acquisition.
Increased demand for hardware products and higher software licenses revenue from CyberArk acquisition.
Largest Expense Items
Increased personnel costs from headcount growth including CyberArk acquisition and higher amortization of intangible assets.
Increased personnel costs and headcount growth, largely due to CyberArk acquisition integration.
Higher cloud hosting service costs, increased amortization of intangible assets, and personnel cost growth to support subscription expansion.
Accelerated vesting of equity awards, employee severance charges, and acquisition-related costs from CyberArk integration.
Margins: Gross margin declined to 67.6% from 72.9% YoY, primarily due to higher amortization of intangible assets from CyberArk acquisition and increased cloud hosting costs, partially offset by shift toward software licenses revenue. Operating margin turned negative at -6.1% from +9.6% due to substantial acquisition-related expenses and integration costs.
Watch Items from the Filing
- CyberArk acquisition integration risks: $21.1B acquisition in February 2026 adding 4,166 headcount; company initiated $59M workforce optimization plan; full synergy benefits remain uncertain and may not be realized on expected timeline.
- Channel concentration: Two distributors represent 31% of total revenue for nine months ended April 30, 2026 and 29% of gross accounts receivable as of April 30, 2026.
- 2030 Convertible Notes obligation: $1.1B principal outstanding; holders converted $153M during make-whole period; if sale price condition met, significant cash payment may be required in Q1 FY2027; management believes cash from operations plus existing liquidity sufficient.
- Contingent consideration liability related to IBM QRadar asset acquisition: $240M recorded as of April 30, 2026; potential cash outflows through fiscal Q4 2028 with estimated range of $0.3B to $0.5B undiscounted.
- Litigation exposure: Centripetal Networks judgment of $114M plus statutory interest recorded in long-term liabilities; appeal pending with surety bond posted; additional patent infringement matters in European Patent Office and Unified Patent Court in Germany.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$3.0B
Net Income
Q3 2026
$-177.0M
Free Cash Flow
Q3 2026
$788.0M
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+33.8% YoYNet Income
+157.9% YoYOperating Income
+220.9% YoYEPS (Diluted)
+400.0% YoYTotal Assets
+62.6% YoYTotal Debt
Op. Cash Flow
+33.8% YoY| Metric | FY 2025 | FY 2023 | FY 2022 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $9.22B +33.8% | $6.89B +25.3% | $5.50B +61.4% | $3.41B +17.5% | $2.90B +27.6% | $2.27B |
| Net Income | $1.13B +157.9% | $439.7M +264.7% | $-267.0M +0.0% | $-267.0M -226.0% | $-81.9M +33.0% | $-122.2M |
| Operating Income | $1.24B +220.9% | $387.3M +305.1% | $-188.8M -5.5% | $-179.0M -230.9% | $-54.1M +48.1% | $-104.2M |
| EPS (Diluted) | $1.60 +400.0% | $0.32 +313.3% | $-0.15 +67.4% | $-0.46 -217.2% | $-0.14 | — |
| Total Assets | $23.58B +62.6% | $14.50B +18.3% | $12.25B +35.2% | $9.07B +37.5% | $6.59B +10.8% | $5.95B |
| Total Debt | — | $1.99B -45.8% | $3.68B +19.2% | $3.08B +115.7% | $1.43B -25.5% | $1.92B |
| Operating Cash Flow | $3.72B +33.8% | $2.78B +39.9% | $1.98B +91.6% | $1.04B -1.9% | $1.06B +1.7% | $1.04B |
AI Insight: PANW Financial Trends
Massive acquisition in Q2 2026 destroyed profitability and tripled equity, though revenue accelerated 16% YoY and operating cash flow remained strong.
• Revenue grew from $2,474M (Q4 2025) to $3,002M (Q2 2026), a 21% sequential jump and 31% YoY growth.
• Net income swung from $334M profit (Q4 2025) to $177M loss (Q2 2026); operating income fell from $309M to negative $183M.
• Equity ballooned from $7,824M (Q3 2025) to $27,668M (Q2 2026), signaling a major capital transaction or stock issuance.
⚠ Q2 2026 GAAP loss of $177M marks first quarterly loss in dataset; integration charges or amortization likely temporary.
⚠ Operating cash flow surged to $1,771M in Q4 2025 and held at $871M in Q2 2026, despite profit collapse—monitor normalization.
AI Insight: PANW Ratio Trends
Profitability collapsed in Q2 2026 across all metrics, with operating margin turning negative for the first time in the dataset.
• Operating margin swung from +15.3% in Q1 2026 to -6.1% in Q2 2026, the sharpest quarterly decline in the dataset.
• Net profit margin fell to -5.9% in Q2 2026 from +16.7% in Q1 2026, signaling severe earnings pressure.
• ROIC dropped 19.5pp from Q1 2026 (+16.9%) to Q2 2026 (-2.6%), erasing capital efficiency entirely.
⚠ Q2 2026 shows losses across ROE, ROA, and ROIC—requires immediate clarification on one-time charges vs. structural issues.
⚠ Q3 2025's ROIC spike to 25.4% was followed by sharp deterioration; volatility suggests operational instability.
Get alerted when PANW's score changes
Free account: watchlist tracking, the daily AI brief, and the AI screener.
Available Research
13F Pro tracks comprehensive data for Palo Alto Networks Inc including:
Top Institutional Holders of PANW
Swedbank AB
$827.4M2,426,137 shAssenagon Asset Management S.A.
$307.3M901,261 shOFI INVEST ASSET MANAGEMENT
$190.3M636,643 shDAVENPORT & Co LLC
$166.5M491,241 shMOGY JOEL R INVESTMENT COUNSEL INC
$105.0M308,019 shCzech National Bank
$78.7M230,842 shWEALTH ENHANCEMENT ADVISORY SERVICES, LLC
$75.3M339,398 shHoward Capital Management Group, LLC
$72.9M213,748 shTRAN CAPITAL MANAGEMENT, L.P.
$69.2M203,058 shAVITY INVESTMENT MANAGEMENT INC.
$66.4M194,590 sh
| Fund | Value | Shares |
|---|---|---|
| Swedbank AB | $827.4M | 2,426,137 |
| Assenagon Asset Management S.A. | $307.3M | 901,261 |
| OFI INVEST ASSET MANAGEMENT | $190.3M | 636,643 |
| DAVENPORT & Co LLC | $166.5M | 491,241 |
| MOGY JOEL R INVESTMENT COUNSEL INC | $105.0M | 308,019 |
| Czech National Bank | $78.7M | 230,842 |
| WEALTH ENHANCEMENT ADVISORY SERVICES, LLC | $75.3M | 339,398 |
| Howard Capital Management Group, LLC | $72.9M | 213,748 |
| TRAN CAPITAL MANAGEMENT, L.P. | $69.2M | 203,058 |
| AVITY INVESTMENT MANAGEMENT INC. | $66.4M | 194,590 |
More Technology Companies
View all Technology →Put PANW on your watchlist
Track score changes the day Palo Alto Networks Inc files with the SEC, follow the hedge funds that own it, screen 2,800+ AI-scored stocks, and get the daily brief — free.
Free tier includes 13F data, economic indicators, and market overview. Pro starts at $6.67/mo (billed annually).
Popular Research
Is PANW a good stock to buy?
13F Pro's AI-powered analysis of Palo Alto Networks Inc (PANW) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PANW are available on the PANW stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own PANW?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PANW. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Palo Alto Networks Inc's investment landscape.