Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

$24.99

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Palo Alto Networks Inc., consolidated income statement (quarterly data)

US$ in thousands

Microsoft Excel
3 months ended: 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 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019 Jan 31, 2019 Oct 31, 2018
Product
Subscription and support
Revenue
Product
Subscription and support
Cost of revenue
Gross profit
Research and development
Sales and marketing
General and administrative
Operating expenses
Operating income (loss)
Interest expense
Other income (expense), net
Income (loss) before income taxes
(Provision for) benefit from income taxes
Net income (loss)

Based on: 10-Q (reporting date: 2025-04-30), 10-Q (reporting date: 2025-01-31), 10-Q (reporting date: 2024-10-31), 10-K (reporting date: 2024-07-31), 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-Q (reporting date: 2023-10-31), 10-K (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-Q (reporting date: 2022-10-31), 10-K (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-Q (reporting date: 2021-10-31), 10-K (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-Q (reporting date: 2020-10-31), 10-K (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-Q (reporting date: 2019-10-31), 10-K (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-Q (reporting date: 2018-10-31).

Revenue Trends
Revenue shows an overall upward trajectory from October 2018 through April 2025, increasing from approximately $656 million to nearly $2.3 billion. Noteworthy acceleration is observable starting around mid-2020, with occasional moderate fluctuations but a clear growth trend sustained through the final periods.
Product Revenue
Product revenue exhibits significant volatility and a generally declining trend over time. Peaking near $305 million in mid-2019 and mid-2020, it then declines and fluctuates near $300 million or below in later periods, including a notable dip in late 2023 followed by partial recovery.
Subscription and Support Revenue
Subscription and support revenue consistently grows over the entire period, increasing from roughly $416 million to nearly $1.8 billion. This category demonstrates steady, sustained growth and constitutes an increasingly larger portion of total revenue over time.
Cost of Revenue and Gross Profit
Cost of revenue increases steadily from about $184 million to over $600 million by the latest quarters, reflecting expansion in business scale. Gross profit correspondingly grows, moving from approximately $473 million in late 2018 to around $1.67 billion by mid-2024, showing effective scaling despite rising costs.
Operating Expenses
Operating expenses consistently increase from about $505 million to peaks in the range of $1.45 billion. Within this category:
Research and Development
Research and development expense rises steadily from about $113 million to near $495 million, indicating sustained investment in innovation.
Sales and Marketing
Sales and marketing costs show a consistent increase from around $315 million to approximately $793 million, highlighting expansion in customer acquisition efforts.
General and Administrative
General and administrative expenses fluctuate but generally trend upward, with an anomalous large increase around early 2024 possibly related to a non-recurring charge or restructuring, before stabilizing back to heightened levels.
Operating Income (Loss)
Operating income exhibits volatility with losses in early periods, intermittently approaching breakeven or modest profit. From mid-2021 onward, operating results improve markedly, turning consistently positive with substantial gains in 2023 and early 2024, signaling improved operational efficiency or scaling benefits.
Interest Expense
Interest expense decreases over time from approximately $23 million to under $1 million by 2024-2025, reflecting debt reduction or refinancing efforts lowering borrowing costs.
Other Income (Expense), Net
Other income progresses positively from roughly $13 million in late 2018 to over $92 million by early 2025, indicating strengthening non-operating income streams, potentially from investments or currency gains.
Income Before Income Taxes
Income before income taxes follows a pattern similar to operating income, initially negative or near zero followed by substantial growth beginning in 2021, reaching over $300 million by 2024-2025, consistent with the positive operating trends and improved overall profitability.
Income Taxes
Provision for income taxes is variable, with periods of net benefits and charges. Of particular note is a large tax benefit recorded around early 2024, likely related to one-time or non-recurring tax events impacting net income comparability.
Net Income (Loss)
Net income mirrors the operating and pre-tax income trends. The company experienced consistent losses or marginal income early on, followed by a marked turnaround starting in 2021. The figure peaks sharply in early 2024, exceeding $1.7 billion, which is significantly influenced by the large tax benefit recorded during the same period. Subsequent quarters show normalization but maintain substantially improved profitability levels.
Summary Insights
The data reveals a business transitioning from early losses toward solid profitability, driven by strong growth in subscription and support revenue and controlled cost management. Investments in R&D and sales remain priorities, supporting sustained top-line growth. The sharp improvements in operating income, income before taxes, and net income in recent periods reflect operational scaling and effective expense management, augmented by favorable non-operating income and tax effects. Interest expense reductions further support profitability. Overall, the trends indicate successful scaling and improving financial health over the observed timeframe.