Palo Alto Networks Inc (PANW)
Pretax margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,595,700 | 988,300 | 566,300 | -207,200 | -465,000 |
| Revenue | US$ in thousands | 9,221,500 | 8,027,500 | 6,892,700 | 5,501,500 | 4,256,100 |
| Pretax margin | 17.30% | 12.31% | 8.22% | -3.77% | -10.93% |
July 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $1,595,700K ÷ $9,221,500K
= 17.30%
The pretax margin of Palo Alto Networks Inc has exhibited a notable progression over the observed period from July 31, 2021, through July 31, 2025. In the fiscal year ending July 31, 2021, the pretax margin was deeply negative at -10.93%, indicating that the company faced operating losses before income taxes. By the subsequent year ending July 31, 2022, the pretax margin improved substantially to -3.77%, reflecting a significant reduction in losses, although the company still remained unprofitable on a pretax basis.
The trend shifted markedly in the year ending July 31, 2023, when the pretax margin turned positive at 8.22%, signaling the company's transition to profitability before income taxes. This positive turn suggests an improvement in operational efficiency and revenue generation capabilities, coupled with effective cost management.
Continuing its positive trend, the pretax margin increased further to 12.31% for the fiscal year ending July 31, 2024, indicating enhanced profitability on a pretax basis. The margin's further expansion to 17.30% by July 31, 2025, underscores ongoing gains in profitability, potentially driven by revenue growth, improved cost controls, or a combination of both.
Overall, the progression from negative to strongly positive pretax margins over these years illustrates a significant turnaround in the company's profitability profile. The steady increase in pretax margin implies that Palo Alto Networks Inc has been successful in enhancing its operational performance, moving from a period of losses to one of consistent and increasing profitability before income taxes.