Palo Alto Networks (PANW)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$333.26+0.40%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
QuarterlyIQ Insights · PANW
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks PANW against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated neutral grew net income 55% of the time over the next year (vs 56% for the rest of the cohort, n=8445).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 0% of the last 5 guided quarters · -67.1% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue strong revenue growth driven by Next-Generation Security ARR and platform expansion, targeting 22% to 23% growth in FY 2026.
Stated as a priority in 4 of last 4 quarters. Management guided fiscal year 2026 revenue to $11.415-$11.425 billion, implying 22%-23% growth from approximately $9.19 billion in fiscal 2025. Revenue grew from $9.22 billion in 2025 to $11.42 billion guidance for 2026, showing delivery on growth targets with an improving trajectory.
“For fiscal year 2026, total revenue expected in range of $11.415 billion to $11.425 billion, representing 24% growth.”
“For fiscal year 2026, total revenue expected in range of $11.28 billion to $11.31 billion, representing 22% to 23% growth.”
“For fiscal year 2026, total revenue expected in range of $10.50 billion to $10.54 billion, representing 14% growth.”
“For fiscal year 2026, total revenue expected in range of $10.50 billion to $10.54 billion, representing 14% growth.”
Maintain earnings per share growth with non-GAAP EPS guidance of $3.77 to $3.79 for fiscal year 2026, reflecting profitable growth.
Stated as a priority in 4 of last 4 quarters. Management consistently guided fiscal year 2026 diluted non-GAAP EPS around $3.77 to $3.79. Actual diluted EPS was $0.47 in 2026-Q1, $0.61 in 2026-Q2, and negative in 2026-Q3 due to GAAP loss, indicating mixed delivery but consistent focus on EPS growth.
“Diluted non-GAAP net income per share guidance for fiscal year 2026 is $3.77 to $3.79.”
Sustain operating margin expansion with non-GAAP operating margin guidance near 29.5% to 30% for fiscal year 2026.
Stated as a priority in 4 of last 4 quarters. Management guided non-GAAP operating margin near 29.5% to 30% for fiscal 2026. Actual GAAP operating income declined in 2026-Q3 but non-GAAP margins remain targeted at this level, indicating ongoing focus on margin expansion with some volatility.
“Non-GAAP operating margin guidance for fiscal year 2026 is 28.9% to 29.2%.”
Maintain strong cash flow generation with adjusted free cash flow margin guidance of 38% to 39% for fiscal year 2026.
Stated as a priority in 4 of last 4 quarters. Management guided adjusted free cash flow margin of 38% to 39% for fiscal 2026. Actual adjusted free cash flow margin was 38.4% in 2026-Q3, consistent with guidance and demonstrating delivery on cash flow generation targets.
“Fiscal year 2026 adjusted free cash flow margin was 38.4%.”
Complete integration of CyberArk to establish identity security as a core pillar and expand platform capabilities across human, machine, and AI identities.
Stated as a priority in 2 of last 4 quarters. Management completed CyberArk acquisition in 2026-Q1 and integration is ongoing to expand identity security platform. This strategic M&A aligns with platform expansion goals, with integration progress consistent with stated plans.
“Palo Alto Networks completed acquisition of CyberArk and integration is underway to infuse CyberArk capabilities.”
Over the trailing year it converted 4.72x of net income into operating cash flow. Historically, Information Technology names rated robust grew net income 62% of the time over the next year (vs 50% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, the US dollar, long-term interest rates, Fed net liquidity (low R² over the window).
20 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Diluted non-GAAP net income per share guidance for fiscal year 2026 is $3.77 to $3.79.”
“Diluted non-GAAP net income per share guidance for fiscal year 2026 is $3.80 to $3.90.”
“Diluted non-GAAP net income per share guidance for fiscal year 2026 is $3.80 to $3.90.”
“Non-GAAP operating margin guidance for fiscal year 2026 is 29.5% to 30.0%.”
“Non-GAAP operating margin guidance for fiscal year 2026 is 29.5% to 30.0%.”
“Non-GAAP operating margin guidance for fiscal year 2026 is 29.5% to 30.0%.”
“Adjusted free cash flow margin guidance for fiscal year 2026 is 38% to 39%.”
“Adjusted free cash flow margin guidance for fiscal year 2026 is 38% to 39%.”
“Adjusted free cash flow margin guidance for fiscal year 2026 is 38% to 39%.”
“Announced intent to acquire CyberArk to establish identity security as a core pillar.”