Name: Palo Alto Networks Inc. (NASDAQ:PANW) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Palo Alto Networks Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Jul 31, 2026	Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021
Net income (loss)	307)	1,134)	2,578)	440)	(267)	(499)
Change in unrealized gains (losses) on investments	(62)	19)	48)	(13)	(25)	(3)
Change in unrealized gains (losses)	9)	30)	(19)	—)	(54)	1)
Net realized (gains) losses reclassified into earnings	(55)	2)	12)	26)	33)	(19)
Net change on cash flow hedges	(46)	32)	(7)	25)	(21)	(17)
Change in fair value of convertible senior notes attributable to instrument-specific credit risk	(11)	—)	—)	—)	—)	—)
Other comprehensive income (loss), net of tax	(119)	50)	42)	12)	(46)	(20)
Comprehensive income (loss)	188)	1,184)	2,619)	452)	(313)	(519)

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 performance over the observed six-year period is characterized by a transition from initial net losses to a period of significant profitability, followed by a subsequent contraction in both net and comprehensive income.

Net Income Performance: A substantial recovery is observed from 2021 to 2024, as net income moved from a loss of US$ 499 million to a peak of US$ 2,578 million. This upward trajectory reversed after 2024, with net income decreasing to US$ 1,134 million in 2025 and further declining to US$ 307 million by 2026.
Other Comprehensive Income (OCI) Volatility: Other comprehensive income, net of tax, remained negative in 2021 and 2022 before entering a positive phase from 2023 to 2025, peaking at US$ 50 million. However, a sharp reversal occurred in 2026, resulting in a net loss of US$ 119 million. This decline was driven by several factors, including unrealized losses on investments of US$ 62 million, a US$ 46 million negative change in cash flow hedges, and a US$ 55 million net realized loss reclassified into earnings.
Comprehensive Income Correlation: Total comprehensive income mirrors the trend of net income, reaching its maximum value of US$ 2,619 million in 2024. While OCI provided a modest additive effect to net income between 2023 and 2025, the significant OCI loss in 2026 acted as a further drag on the overall result, contributing to a final comprehensive income of US$ 188 million for that period.
Specific Instrument Impacts: The 2026 period introduced a new negative impact from the change in fair value of convertible senior notes attributable to instrument-specific credit risk, amounting to US$ 11 million. This addition to the OCI losses indicates an increase in the complexity of the balance sheet impact during the final year of the analysis.

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