Palo Alto Networks (PANW) Stock Analysis

July 16, 2026

This is a peer-relative look at Palo Alto Networks (PANW): its performance, risk, profitability, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Palo Alto Networks (PANW)
Profile Item	PANW
Name	Palo Alto Networks, Inc.
Country/Region	United States
GICS Sector	Information Technology
GICS Industry Group	Software & Services
GICS Industry	Software
GICS Sub-Industry	Systems Software
Market Capitalization	269.19 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	July 20, 2012
Security Type	Common Stock

Price Performance

Cumulative Growth

PANW

GSPC

Palo Alto Networks (PANW) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Palo Alto Networks (PANW) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Palo Alto Networks (PANW) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
Total Return (1Y)	76.26%	-9.94%
Total Return (3Y, Annualized)	40.34%	-1.11%
Total Return (5Y, Annualized)	38.56%	-8.14%

Risk Profile

Drawdown History

PANW

GSPC

Palo Alto Networks (PANW) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Palo Alto Networks (PANW) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
Volatility (1Y, Annualized)	40.95%	59.13%
Beta (5Y)	0.91	1.13
Max Drawdown (5Y)	-36.01%	-78.16%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PANW is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
Sharpe Ratio (1Y)	1.76	-0.28
Sortino Ratio (1Y)	2.65	-0.40

Profitability

ROE (TTM)

Palo Alto Networks (PANW) posts ROE of 4.83%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

PANW

Software & Services industry group

4.83%

Group distribution

Max: 53.38%
Q3: 16.69%
Median: 5.43%
PANW: 4.83%
Q1: -12.90%
Min: -55.27%

Largest peers

ORCL: 53.38%
IBM: 35.77%
MSFT: 34.01%
PLTR: 32.59%
SAP: 16.35%
PANW: 4.83%
CRWD: -0.25%

Where Palo Alto Networks (PANW) stands on ROE within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Palo Alto Networks (PANW) keeps 7.95% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

PANW

Software & Services industry group

7.95%

Group distribution

Max: 44.20%
Q3: 14.95%
PANW: 7.95%
Median: 3.70%
Q1: -5.33%
Min: -34.99%

Largest peers

PLTR: 43.67%
MSFT: 39.34%
ORCL: 25.37%
SAP: 19.58%
IBM: 15.61%
PANW: 7.95%
CRWD: -0.60%

Where Palo Alto Networks (PANW) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Palo Alto Networks (PANW) has negative operating margin of -2.47%. Core operations were loss-making before interest and taxes over the trailing period.

PANW

Software & Services industry group

-2.47%

Group distribution

Max: 46.97%
Q3: 16.54%
Median: 4.94%
PANW: -2.47%
Q1: -10.21%
Min: -43.35%

Largest peers

MSFT: 46.33%
PLTR: 46.18%
ORCL: 36.20%
SAP: 30.03%
IBM: 13.81%
CRWD: -2.21%
PANW: -2.47%

Where Palo Alto Networks (PANW) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
ROE (TTM)	4.83%	5.43%
ROA (TTM)	1.77%	1.77%
Net Margin (TTM)	7.95%	3.70%
Operating Margin (TTM)	-2.47%	4.94%
Gross Margin (TTM)	71.96%	69.27%

Financial Strength

Current Ratio (MRQ)

Palo Alto Networks (PANW) has current ratio of 0.86, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

PANW

Software & Services industry group

0.86

Group distribution

Max: 5.16
Q3: 2.72
Median: 1.69
Q1: 1.06
PANW: 0.86
Min: 0.03

Largest peers

PLTR: 6.91
CRWD: 1.53
MSFT: 1.28
ORCL: 1.12
SAP: 1.07
PANW: 0.86
IBM: 0.80

Where Palo Alto Networks (PANW) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Palo Alto Networks (PANW) has debt-to-equity ratio of 0.08, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

PANW

Software & Services industry group

0.08

Group distribution

Max: 2.62
Q3: 1.13
Median: 0.33
PANW: 0.08
Q1: 0.06
Min: 0.00

Largest peers

ORCL: 3.89
IBM: 2.11
MSFT: 0.30
CRWD: 0.18
SAP: 0.17
PANW: 0.08
PLTR: 0.02

Where Palo Alto Networks (PANW) stands on debt-to-equity ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
Current Ratio (MRQ)	0.86	1.69
Debt / Equity (MRQ)	0.08	0.33
Net Debt / EBITDA	-0.66	-0.09

Dividends

Dividend Yield (TTM)

Palo Alto Networks (PANW) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

PANW

Software & Services industry group

0.00%

Group distribution

PANW: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 2.34%
SAP: 1.58%
ORCL: 1.42%
MSFT: 0.92%
PANW: 0.00%
PLTR: 0.00%
CRWD: 0.00%

Where Palo Alto Networks (PANW) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Palo Alto Networks (PANW) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

PANW

Software & Services industry group

0.00%

Group distribution

PANW: 0.00%
Max: 0.00%
Q3: 0.00%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

IBM: 59.47%
SAP: 37.15%
ORCL: 34.31%
MSFT: 20.73%
PANW: 0.00%
PLTR: 0.00%
CRWD: 0.00%

Where Palo Alto Networks (PANW) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
Dividend Yield (TTM)	0.00%	0.00%
Dividend Payout Ratio (TTM)	0.00%	0.00%

Valuation

P/E Ratio (TTM)

Palo Alto Networks (PANW) trades at P/E ratio of 284.74, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.

PANW

Software & Services industry group

284.74

Group distribution

PANW: 284.74
Max: 119.94
Q3: 64.03
Median: 31.83
Q1: 16.38
Min: 0.42

Largest peers

PANW: 284.74
PLTR: 142.90
IBM: 25.68
MSFT: 22.93
ORCL: 22.52
SAP: 22.22
CRWD: --

Where Palo Alto Networks (PANW) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Palo Alto Networks (PANW) trades at 25.38 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

PANW

Software & Services industry group

25.38

Group distribution

PANW: 25.38
Max: 18.50
Q3: 8.76
Median: 4.01
Q1: 2.17
Min: 0.02

Largest peers

PLTR: 59.67
CRWD: 37.56
PANW: 25.38
MSFT: 9.13
ORCL: 5.63
SAP: 5.05
IBM: 3.96

Where Palo Alto Networks (PANW) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Palo Alto Networks (PANW) trades at 9.71 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

PANW

Software & Services industry group

9.71

Group distribution

Max: 18.41
PANW: 9.71
Q3: 8.63
Median: 4.02
Q1: 1.96
Min: -7.70

Largest peers

CRWD: 41.29
PLTR: 36.89
ORCL: 10.09
PANW: 9.71
IBM: 8.27
MSFT: 7.01
SAP: 3.58

Where Palo Alto Networks (PANW) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Palo Alto Networks (PANW) metric values compared with Software & Services industry-group medians
Metric	Current stock: PANW	Industry group median
P/E Ratio (TTM)	284.74	31.83
P/S Ratio (TTM)	25.38	4.01
P/B Ratio (MRQ)	9.71	4.02
Free Cash Flow Yield (TTM)	1.33%	4.27%