Palo Alto Networks Inc (PANW)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,133,900 | 1,237,800 | 1,254,500 | 2,734,100 | 2,577,600 | 2,447,600 | 2,276,600 | 613,900 | 439,700 | 215,300 | 34,300 | -143,400 | -267,000 | -389,600 | -461,500 | -510,300 | -498,900 | -438,500 | -368,200 | -299,600 |
| 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 |
| Net profit margin | 12.30% | 13.95% | 14.64% | 32.99% | 32.11% | 31.41% | 30.24% | 8.52% | 6.38% | 3.32% | 0.56% | -2.46% | -4.85% | -7.54% | -9.50% | -11.20% | -11.72% | -11.00% | -9.73% | -8.36% |
July 31, 2025 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,133,900K ÷ $9,221,500K
= 12.30%
The net profit margin of Palo Alto Networks Inc. demonstrates a significant transformation over the analyzed period. Initially, during late 2020 and throughout 2021, the company experienced negative net profit margins, with values fluctuating between approximately -8.36% and -11.72%. This indicates that the company was operating at a loss during that period, which is common for growing technology firms investing heavily in expansion and research and development.
From late 2021 into 2022, there was a notable improvement, with the net profit margin turning positive for the first time in early 2023. Specifically, by January 2023, the margin reached 0.56%, reflecting the company’s transition toward profitability. Subsequently, the margin continued to improve substantially, reaching approximately 8.52% in October 2023. This upward trend suggests that the company's efforts to enhance operational efficiency and revenue generation have been effective.
The most marked change occurred between October 2023 and January 2024, where the net profit margin surged from 8.52% to 30.24%. This dramatic increase indicates a substantial gain in profitability, potentially attributable to increased revenues, cost management, or other operational efficiencies. This high level of profitability has been sustained through mid-2025, with margins remaining above 12% and approaching approximately 33% by October 2024.
Overall, the trajectory of Palo Alto Networks Inc.'s net profit margin illustrates a period of operational losses followed by a significant recovery and consistent profitability growth. The progression from negative to high double-digit positive margins reflects successful strategic execution and favorable market conditions. Nonetheless, the fluctuations ahead of 2024 suggest a period of adjustment or changes in operational factors that have ultimately favored profitability.