Stock Analysis on Net
Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

$24.99

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Paying user area

Try for free

Palo Alto Networks Inc. pages available for free this week:

The data is hidden behind: . Unhide it.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Visa Mastercard Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check

Palo Alto Networks Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Jul 31, 2026 Jul 31, 2025 Jul 31, 2024 Jul 31, 2023 Jul 31, 2022 Jul 31, 2021
Net income (loss)
Share-based compensation for equity-based awards
Deferred income taxes
Depreciation and amortization
Amortization of deferred contract costs
Amortization of debt issuance costs
Change in fair value of convertible senior notes and capped calls
Change in fair value of contingent consideration liability
Reduction of operating lease right-of-use assets
Amortization of investment premiums, net of accretion of purchase discounts
Unrealized foreign currency exchange losses, net
Repayments of convertible senior notes attributable to debt discount
Accounts receivable, net
Financing receivables, net
Deferred contract costs
Prepaid expenses and other assets
Accounts payable
Accrued compensation
Accrued and other liabilities
Deferred revenue
Changes in operating assets and liabilities, net of effects of acquisitions
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Net cash provided by operating activities
Purchases of investments
Proceeds from sales of investments
Proceeds from maturities of investments
Business acquisitions, net of cash and restricted cash acquired
Purchases of property, equipment, and other assets
Net cash used in investing activities
Repayments and settlement of conversions of convertible senior notes
Proceeds from capped calls related to convertible senior notes
Payments for debt issuance costs
Repurchases of common stock
Proceeds from sales of shares through employee equity incentive plans
Payments for taxes related to net share settlement of equity awards
Payments of contingent consideration liability
Net cash used in financing activities
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
Net increase (decrease) in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash, beginning of period
Cash, cash equivalents, and restricted cash, end of period

Based on: 10-K (reporting date: 2026-07-31), 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31).

The financial data indicates a period of significant growth in cash generation from operations, coupled with a strategic shift in investment and financing activities. While net income has exhibited volatility, moving from initial losses to a peak in 2024 before declining, the net cash provided by operating activities has maintained a consistent upward trajectory, increasing from 1,503 million in 2021 to 4,553 million in 2026.

Operating Cash Flow Drivers
A substantial divergence is observed between net income and net cash provided by operating activities. This gap is primarily driven by non-cash charges, most notably share-based compensation, which increased steadily from 895 million in 2021 to 1,774 million in 2026. Additionally, deferred revenue showed strong growth through 2023, peaking at 2,302 million, before experiencing a notable decline to 1,202 million by 2026, suggesting a shift in billing patterns or revenue recognition timing.
Investment Strategy and Capital Expenditure
Investing activities are characterized by aggressive capital allocation. Net cash used in investing activities grew to 3,104 million in 2026. This was heavily influenced by a sharp increase in business acquisitions, which reached 4,663 million in 2026 compared to significantly lower levels in previous years. Purchases of property, equipment, and other assets also trended upward, reaching 440 million in 2026, indicating expanded infrastructure investment.
Financing and Debt Management
Financing activities consistently resulted in net cash outflows, reflecting a strategy of debt reduction and shareholder returns. Significant repayments of convertible senior notes occurred between 2023 and 2024, totaling over 2,700 million across those two years. Common stock repurchases were intermittent but substantial, with 1,000 million spent in 2026 after a pause in 2025.
Liquidity and Cash Position
The ending cash, cash equivalents, and restricted cash balance remained relatively stable despite large outflows for acquisitions and debt repayment. The balance ended at 2,523 million in 2026, supported by the robust growth in operating cash flow which offset the intensified investing and financing expenditures.

Overall, the analysis reveals a transition toward a more cash-generative operating model that supports aggressive inorganic growth and the systematic retirement of debt and equity.