Palo Alto Networks Inc (PANW)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,595,700 | 1,322,900 | 1,263,600 | 1,074,300 | 988,300 | 985,800 | 865,600 | 814,500 | 566,300 | 267,100 | 83,600 | -81,600 | -207,200 | -326,800 | -424,700 | -473,900 | -465,000 | -411,100 | -328,500 | -259,600 |
| 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 |
| Pretax margin | 17.30% | 14.91% | 14.74% | 12.96% | 12.31% | 12.65% | 11.50% | 11.30% | 8.22% | 4.12% | 1.36% | -1.40% | -3.77% | -6.32% | -8.74% | -10.40% | -10.93% | -10.31% | -8.68% | -7.25% |
July 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,595,700K ÷ $9,221,500K
= 17.30%
The pretax margin of Palo Alto Networks Inc. exhibits a notable evolution over the period from October 2020 to July 2025. Initially, the company reported negative pretax margins throughout the fiscal periods ending October 2020 through October 2022, with figures declining from -7.25% to a low of -10.93%. This indicates that during this period, the company was consistently incurring pretax losses, which is typical for rapidly growing technology firms investing heavily in expansion and R&D, or possibly reflecting operational challenges affecting profitability.
From the fiscal quarter ending in January 2023, the pretax margin turned positive at 1.36%, marking a significant inflection point and suggesting improvement in operational efficiency or revenue growth outpacing expenses. This positive trend continued through subsequent periods, with margins escalating to 4.12% in April 2023, then further to 8.22% in July 2023, and reaching 11.30% in October 2023. The steady increase indicates progressive gains in profitability before the end of the fiscal year.
In 2024, the pretax margin maintained an upward trajectory, reaching 11.50% by January and improving further to 12.65% by April, before experiencing a slight decline to 12.31% in July. By October 2024, the pretax margin approached 13%, specifically at 12.96%, reflecting sustained improvement with ongoing operational efficiencies or revenue growth.
The trend continued into 2025, with margins significantly improving to 14.74% in January, 14.91% in April, and reaching 17.30% by July 2025. This substantial increase highlights a pronounced shift towards higher profitability, reducing the prior losses and positioning the company well within positive territory with robust pretax profit margins.
Overall, the data depict a transition from consistent pretax losses in the initial periods towards sustained profitability in the later periods, with a clear upward trend in pretax margin percentages over the last several fiscal quarters. This progression suggests effective strategic initiatives, operational improvements, and/or revenue expansion that have positively impacted the company’s profitability profile.