Palo Alto Networks Inc (PANW)
Gross profit margin
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 6,769,900 | 6,528,400 | 6,329,900 | 6,147,700 | 5,968,300 | 5,799,000 | 5,573,900 | 5,286,800 | 4,983,000 | 4,594,700 | 4,294,800 | 4,017,500 | 3,782,800 | 3,585,000 | 3,382,100 | 3,179,800 | 2,981,200 | 2,780,800 | 2,648,600 | 2,522,900 |
| Revenue (ttm) | US$ in thousands | 9,221,500 | 8,874,700 | 8,570,500 | 8,288,200 | 8,027,500 | 7,791,300 | 7,527,400 | 7,207,400 | 6,892,700 | 6,489,900 | 6,155,700 | 5,817,500 | 5,501,500 | 5,170,300 | 4,857,500 | 4,557,500 | 4,256,100 | 3,987,200 | 3,782,700 | 3,582,500 |
| Gross profit margin | 73.41% | 73.56% | 73.86% | 74.17% | 74.35% | 74.43% | 74.05% | 73.35% | 72.29% | 70.80% | 69.77% | 69.06% | 68.76% | 69.34% | 69.63% | 69.77% | 70.05% | 69.74% | 70.02% | 70.42% |
July 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $6,769,900K ÷ $9,221,500K
= 73.41%
The gross profit margin of Palo Alto Networks Inc exhibits a general upward trend over the analyzed period from October 31, 2020, to July 31, 2025. Starting at 70.42% in October 2020, the margin shows minor fluctuations in the subsequent quarters, remaining close to the 70% mark with slight decreases and increases. Specifically, from October 2020 through April 2022, the gross profit margin predominantly fluctuates within a narrow range of approximately 69.34% to 70.05%, indicating relative stability in gross profitability during this period.
From July 2022 onwards, a gradual upward trajectory becomes apparent. The margin increases from 68.76% in July 2022 to reach 73.35% by October 2023. This trend continues with notable accelerations, culminating at 74.43% in April 2024. The rate of increase slightly slows after this peak, with the margin remaining relatively stable around 74% through October 2024 and into early 2025, with minor declines to approximately 73.41% by July 2025.
Overall, the data suggests an enhancement in the company's gross profit efficiency, possibly reflecting improved cost control, pricing strategies, or product mix optimizations. The consistent upward trend across nearly three years indicates a strengthening in Palo Alto Networks' ability to generate gross profit relative to its revenue base. The margin's stabilization near the upper 73% to low 74% range in the latter part of the period indicates a mature phase of profitability with less volatility.