Palo Alto Networks Inc (PANW)
Net profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,133,900 | 2,577,600 | 439,700 | -267,000 | -498,900 |
| Revenue | US$ in thousands | 9,221,500 | 8,027,500 | 6,892,700 | 5,501,500 | 4,256,100 |
| Net profit margin | 12.30% | 32.11% | 6.38% | -4.85% | -11.72% |
July 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $1,133,900K ÷ $9,221,500K
= 12.30%
The net profit margin of Palo Alto Networks Inc exhibits notable fluctuations over the analyzed period. As of July 31, 2021, the company reported a negative net profit margin of -11.72%, indicating unprofitable operations during that fiscal year. The subsequent year, July 31, 2022, saw a significant improvement, with the net profit margin narrowing to -4.85%, reflecting a reduction in net losses and better cost management or revenue performance.
By July 31, 2023, the company reversed its negative trend, achieving a positive net profit margin of 6.38%. This transition suggests successful efforts in improving profitability, cost control, or revenue growth. The most remarkable change occurs in July 31, 2024, with the net profit margin reaching 32.11%, highlighting a strong profit generation capability and efficient cost structure, positioning the company well within profitability metrics that surpass many industry peers.
In the following year, July 31, 2025, the net profit margin decreases to 12.30%. Although still positive, this decline may indicate increased expenses, competitive pressures, or other operational considerations impacting margins. Overall, the progression from negative to high positive margins illustrates a substantial turnaround in profitability, with the company moving from incurred losses to generating strong profit margins within a span of approximately three years.