Palo Alto Networks Inc (PANW)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 7,824,400 | 7,230,500 | 6,375,300 | 5,911,800 | 5,169,700 | 4,467,800 | 4,357,200 | 2,170,500 | 1,748,400 | 1,232,400 | 729,000 | 508,000 | 210,000 | 337,600 | 117,800 | 518,900 | 763,600 | 997,200 | 1,198,500 | 747,000 |
| ROE | 14.49% | 17.12% | 19.68% | 46.25% | 49.86% | 54.78% | 52.25% | 28.28% | 25.15% | 17.47% | 4.71% | -28.23% | -127.14% | -115.40% | -391.77% | -98.34% | -65.34% | -43.97% | -30.72% | -40.11% |
July 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,133,900K ÷ $7,824,400K
= 14.49%
The analysis of Palo Alto Networks Inc.'s return on equity (ROE) over the period indicates a significant transformation from deeply negative values to positive territory. From October 31, 2020, through October 31, 2021, the ROE was persistently negative, with the most severe decline occurring on January 31, 2022, where it reached -391.77%. This trend reflects substantial losses relative to shareholders’ equity during that period, possibly driven by increased expenses, investments in growth initiatives, or other operational challenges.
Starting from late 2021, a marked improvement emerges. The ROE shifts to positive territory by January 31, 2023, reaching 4.71%, signaling a transition towards operational profitability and enhanced efficiency in generating returns for shareholders. This positive trend continues into mid-2023, with ROE rising to 17.47% by April 30, 2023, and further to 25.15% on July 31, 2023. By October 31, 2023, the ROE maintains a healthy level at 28.28%, indicating sustained profitability and effective utilization of shareholders' equity.
Looking forward, projections show a further upward trend: ROE is expected to peak around January 31, 2024, at approximately 52.25%, before gradually declining but remaining positive through subsequent quarters. The decline into 2024 and 2025, with estimates around 19.68% by January 31, 2025, suggests a possible normalization or moderation of return levels, potentially due to strategic investments, market conditions, or competitive factors.
Overall, the trajectory from sharply negative ROE to consistent positive figures signifies a substantial turnaround in Palo Alto Networks’ profitability and operational efficiency. The steady improvement indicates effective management and operational strategies, although future fluctuations may reflect ongoing corporate developments, market dynamics, or reinvestment activities.
See also:
Palo Alto Networks Inc Return on Equity (ROE) (Quarterly Data)