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.

Palo Alto Networks Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Jul 31, 2025	Jul 31, 2024	Jul 31, 2023	Jul 31, 2022	Jul 31, 2021	Jul 31, 2020
Net income (loss)	1,133,900)	2,577,600)	439,700)	(267,000)	(498,900)	(267,000)
Change in unrealized gains (losses) on investments	18,500)	48,200)	(13,000)	(25,000)	(3,000)	1,000)
Change in unrealized gains (losses)	29,600)	(18,900)	(200)	(54,000)	1,100)	8,300)
Net realized (gains) losses reclassified into earnings	1,900)	12,300)	25,600)	33,300)	(18,500)	4,900)
Net change on cash flow hedges	31,500)	(6,600)	25,400)	(20,700)	(17,400)	13,200)
Other comprehensive income (loss), net of tax	50,000)	41,600)	12,400)	(45,700)	(20,400)	14,200)
Comprehensive income (loss)	1,183,900)	2,619,200)	452,100)	(312,700)	(519,300)	(252,800)

Based on: 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), 10-K (reporting date: 2020-07-31).

Net Income (Loss): The net income shows considerable volatility over the years. Initially, there were significant losses of -267 million in 2020 and a larger loss of nearly -499 million in 2021. The loss returned to -267 million in 2022, followed by a notable turnaround to a positive 440 million in 2023. The upward trend continued sharply with net income reaching 2.58 billion in 2024, before decreasing to approximately 1.13 billion in 2025. This pattern indicates a recovery phase post-2022 with strong profitability, though with some decline in the final reported year.
Change in Unrealized Gains (Losses) on Investments: This line item reflects fluctuating unrealized gains and losses. It started with a minor gain of 1 million in 2020, then shifted to losses in 2021 and 2022, reaching a loss of -25 million. Losses decreased slightly in 2023. A strong reversal occurred in 2024 with a gain of 48.2 million, followed by a decline to 18.5 million in 2025. This indicates increased investment valuation gains in the most recent years after a period of losses.
Change in Unrealized Gains (Losses): There is a highly variable pattern in unrealized gains/losses with gains of 8.3 million in 2020 and 1.1 million in 2021. This was followed by a sharp decline to a loss of 54 million in 2022, with smaller losses recorded in 2023 and 2024. The figure rebounded to a gain of 29.6 million in 2025. These fluctuations suggest volatility in the valuation of certain assets or investments outside the specifically noted investments category.
Net Realized (Gains) Losses Reclassified Into Earnings: The realized gains and losses reclassified into earnings have been inconsistent. Starting with a 4.9 million gain in 2020, the figure dropped to a loss of -18.5 million in 2021, followed by gains of 33.3 million in 2022 and 25.6 million in 2023. The gains then diminished to 12.3 million in 2024 and further to 1.9 million in 2025. This indicates some gains realized from previously unrealized gains, albeit with decreasing amounts in the most recent periods.
Net Change on Cash Flow Hedges: Cash flow hedge changes have been volatile, with positive 13.2 million in 2020, shifting to negative amounts of -17.4 million in 2021 and -20.7 million in 2022. In 2023, there was a substantial positive swing to 25.4 million, which dropped again to -6.6 million in 2024, followed by a rise to 31.5 million in 2025. This demonstrates fluctuating impacts from hedging activities on the financial statements.
Other Comprehensive Income (Loss), Net of Tax: This measure signals overall other comprehensive results and shows a peak at 14.2 million in 2020, then turns negative with -20.4 million in 2021 and a significant -45.7 million loss in 2022. Recovery is observed afterward with a positive 12.4 million in 2023 and an increase to 41.6 million in 2024, ultimately reaching 50 million in 2025. The data suggests improving other comprehensive income items post-2022.
Comprehensive Income (Loss): Comprehensive income (loss), which includes both net income and other comprehensive items, mirrors the net income trends with heavy losses recorded at -252.8 million in 2020, worsening to -519.3 million in 2021, and somewhat less severe losses of -312.7 million in 2022. A strong positive change is noted with 452.1 million in 2023 and a significant surge to 2.62 billion in 2024, followed by a decrease to approximately 1.18 billion in 2025. This pattern reflects the overall financial recovery and growth after a period of losses.

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Palo Alto Networks Inc. (NASDAQ:PANW)

Statement of Comprehensive Income