Palo Alto Networks Inc (PANW)
Gross profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 6,933,900 | 5,968,300 | 4,983,000 | 3,782,800 | 2,981,200 |
| Revenue | US$ in thousands | 9,221,500 | 8,027,500 | 6,892,700 | 5,501,500 | 4,256,100 |
| Gross profit margin | 75.19% | 74.35% | 72.29% | 68.76% | 70.05% |
July 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $6,933,900K ÷ $9,221,500K
= 75.19%
The gross profit margin of Palo Alto Networks Inc. demonstrates a generally upward trend over the observed period from July 31, 2021, to July 31, 2025. Specifically, the gross profit margin was recorded at 70.05% in July 2021, reflecting the proportion of revenue remaining after deducting the cost of goods sold relative to total sales. This margin experienced a decline in the subsequent year, decreasing to 68.76% by July 31, 2022, suggesting a narrowing of gross profitability, possibly due to increased cost pressures or changes in product mix.
However, from that point onward, the gross profit margin reversed its decline and consistently improved, reaching 72.29% by July 31, 2023. This indicates enhanced efficiency or pricing strategies that positively impacted gross profit margins. The upward trajectory persisted into the subsequent years, with margins increasing further to 74.35% in July 2024 and 75.19% by July 2025. These figures suggest ongoing improvements in the company’s gross profitability, potentially driven by factors such as better cost management, economies of scale, or favorable changes in sales composition.
Overall, the trend in Palo Alto Networks Inc.'s gross profit margin reflects a recovery and continuous improvement in gross profitability over the analyzed period, indicating a strengthening of cost control measures and/or revenue growth at higher margin levels.