How Palo Alto Networks (PANW) Makes Money: A Visual Guide
Palo Alto Networks (PANW) generated $9.89B in revenue (TTM through Q1 2026), earning $1.28B in net profit (13% margin). Its largest revenue source is Subscription (53.3% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Palo Alto Networks (PANW) Income Statement Flow
Frequently asked questions
How does Palo Alto Networks (PANW) make money?
- Palo Alto Networks (PANW) primarily makes money through Subscription, which accounts for 53.3% of total revenue. For TTM through Q1 2026, Palo Alto Networks generated $9.89B in total revenue with a net profit margin of 13%.
What is Palo Alto Networks (PANW) gross profit margin?
- Palo Alto Networks (PANW) reported a gross profit margin of 73.5% for TTM through Q1 2026, equivalent to $7.27B in gross profit. This means Palo Alto Networks retains 73.5% of each revenue unit after direct costs of production.
What is Palo Alto Networks (PANW) operating profit margin?
- Palo Alto Networks (PANW) reported an operating profit margin of 14.4% for TTM through Q1 2026, equivalent to $1.43B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Palo Alto Networks (PANW) net profit margin?
- Palo Alto Networks (PANW) reported a net profit margin of 13% for TTM through Q1 2026, equivalent to $1.28B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Palo Alto Networks (PANW) invest in R&D?
- Palo Alto Networks (PANW) invested $2.04B in research and development in TTM through Q1 2026 (20.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Palo Alto Networks (PANW) spend on capital expenditures?
- Palo Alto Networks (PANW) spent $396.20M on capital expenditures in TTM through Q1 2026 (4.0% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Palo Alto Networks (PANW) free cash flow?
- Palo Alto Networks (PANW) generated $4.07B in free cash flow for TTM through Q1 2026 (41.1% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Palo Alto Networks (PANW) effective tax rate?
- Palo Alto Networks (PANW) had an effective tax rate of 31.2% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q1 2026.