Palo Alto Networks Inc (PANW)
Operating profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,133,200 | 683,900 | 387,300 | -188,800 | -304,100 |
| Revenue | US$ in thousands | 9,221,500 | 8,027,500 | 6,892,700 | 5,501,500 | 4,256,100 |
| Operating profit margin | 12.29% | 8.52% | 5.62% | -3.43% | -7.15% |
July 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,133,200K ÷ $9,221,500K
= 12.29%
The operating profit margin of Palo Alto Networks Inc. has demonstrated a notable upward trend over the specified period. As of July 31, 2021, the company reported a negative operating profit margin of -7.15%, indicating operational challenges and unprofitability at that time. By July 31, 2022, the operating margin had improved significantly to -3.43%, reflecting steps toward operational efficiency and cost management, albeit still remaining in negative territory.
The most substantial turnaround occurred by July 31, 2023, when the operating profit margin crossed into positive territory, reaching 5.62%. This shift signifies a meaningful improvement in the company's operational profitability, likely driven by increased revenues, better cost control, or margin-enhancing initiatives.
Continuing on this trajectory, the operating profit margin further strengthened, rising to 8.52% by July 31, 2024. This indicates that the company's operational leverage and efficiency improvements persisted in the following year. The most recent data, as of July 31, 2025, shows the operating profit margin reaching 12.29%, signifying a robust profit-generating capability and sustained operational excellence.
Overall, the progression from negative margins to positive and increasing margins over these four fiscal years underscores a substantial recovery and growth in the company’s operational profitability. This pattern suggests that Palo Alto Networks Inc. has effectively addressed previous operational inefficiencies and is on a favorable trajectory toward sustainable profitability.