Net Profit Margin
since 2012
Calculation
Palo Alto Networks Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 2.67% | = | 100 | × | 307) | ÷ | 11,480) |
| Jul 31, 2025 | 12.30% | = | 100 | × | 1,134) | ÷ | 9,222) |
| Jul 31, 2024 | 32.11% | = | 100 | × | 2,578) | ÷ | 8,028) |
| Jul 31, 2023 | 6.38% | = | 100 | × | 440) | ÷ | 6,893) |
| Jul 31, 2022 | -4.85% | = | 100 | × | (267) | ÷ | 5,502) |
| Jul 31, 2021 | -11.72% | = | 100 | × | (499) | ÷ | 4,256) |
| Jul 31, 2020 | -7.83% | = | 100 | × | (267) | ÷ | 3,408) |
| Jul 31, 2019 | -2.82% | = | 100 | × | (82) | ÷ | 2,900) |
| Jul 31, 2018 | -6.51% | = | 100 | × | (148) | ÷ | 2,273) |
| Jul 31, 2017 | -12.30% | = | 100 | × | (217) | ÷ | 1,762) |
| Jul 31, 2016 | -16.39% | = | 100 | × | (226) | ÷ | 1,379) |
| Jul 31, 2015 | -17.78% | = | 100 | × | (165) | ÷ | 928) |
| Jul 31, 2014 | -37.86% | = | 100 | × | (226) | ÷ | 598) |
| Jul 31, 2013 | -7.38% | = | 100 | × | (29) | ÷ | 396) |
| Jul 31, 2012 | 0.29% | = | 100 | × | 1) | ÷ | 255) |
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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
1 US$ in millions
The financial performance from 2012 to 2026 reveals a trajectory of aggressive revenue scaling paired with prolonged periods of negative profitability, followed by a brief peak in margins and a subsequent contraction.
- Revenue Expansion
- A consistent and significant upward trend in revenue is observed, growing from 255 million in 2012 to 11.48 billion by 2026. This represents a steady expansion of the top line over the fourteen-year period.
- Profitability Cycle and Net Profit Margin Trends
- The net profit margin experienced extreme volatility. After a near-breakeven start in 2012, margins declined sharply to a nadir of -37.86% in 2014. A gradual recovery followed, though margins remained negative for a decade, fluctuating between -2.82% and -11.72% through 2022.
- Profitability Pivot and Peak Performance
- A fundamental shift occurred in 2023 when the net profit margin turned positive for the first time in ten years, reaching 6.38%. This trend culminated in a significant peak in 2024, where the net profit margin surged to 32.11%, coinciding with a net income of 2.578 billion.
- Recent Margin Contraction
- Following the 2024 peak, a sharp downward trend in profitability is evident. The net profit margin fell to 12.30% in 2025 and further contracted to 2.67% by 2026, despite continued revenue growth. This indicates that expenses grew at a faster rate than revenue during this final period, eroding the previously achieved gains in net income.
In summary, the data illustrates a transition from a high-loss investment phase to a period of high profitability, ending with a recent trend of diminishing returns on the net profit margin.
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Comparison to Competitors
Palo Alto Networks Inc., net profit margin, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 2.67% | 11.28% | — | — | — | — | — | 21.29% | 40.31% | 25.37% | — | 17.96% | — | — | 7.26% |
| Jul 31, 2025 | 12.30% | 11.02% | 30.00% | 60.83% | 20.94% | 3.14% | 15.69% | 20.55% | 36.15% | 21.68% | 36.31% | 16.35% | 13.16% | 18.89% | 6.23% |
| Jul 31, 2024 | 32.11% | 11.19% | 25.85% | 33.55% | 22.74% | 6.85% | 9.60% | 18.19% | 35.96% | 19.76% | 16.13% | 11.87% | 12.97% | 36.94% | 19.02% |
| Jul 31, 2023 | 6.38% | 10.72% | 27.97% | 10.87% | 25.46% | 2.28% | 12.13% | 16.59% | 34.15% | 17.02% | 9.43% | 0.66% | 19.30% | 21.05% | -5.90% |
| Jul 31, 2022 | -4.85% | 11.17% | 27.01% | -6.84% | 23.84% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | 5.45% | 4.49% | 19.38% | 0.57% |
| Jul 31, 2021 | -11.72% | 11.69% | 30.55% | 1.27% | 23.29% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | 19.16% | 3.90% | 18.02% | -6.54% |
| Jul 31, 2020 | -7.83% | 11.52% | 40.88% | — | 22.02% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | 0.74% | 2.62% | 18.03% | -13.25% |
| Jul 31, 2019 | -2.82% | 11.06% | 26.42% | — | 42.33% | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | 8.36% | 18.11% | 15.84% | -14.82% |
| Jul 31, 2018 | -6.51% | 9.76% | 28.69% | — | 16.17% | — | 10.97% | 20.31% | 15.02% | 9.60% | — | 1.22% | -1.02% | 13.86% | -14.99% |
| Jul 31, 2017 | -12.30% | 9.37% | 23.20% | — | 10.50% | — | 7.27% | 18.76% | 23.57% | 24.74% | — | 2.14% | -7.71% | 5.01% | -26.01% |
| Jul 31, 2016 | -16.39% | 11.82% | 19.96% | — | 11.18% | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -0.71% | -32.49% | 11.01% | -24.94% |
| Jul 31, 2015 | -17.78% | 9.28% | 13.13% | — | 14.83% | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -4.89% | -19.73% | 10.08% | -31.48% |
| Jul 31, 2014 | -37.86% | 9.23% | 6.47% | — | 10.05% | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -5.70% | -26.28% | 12.59% | -36.79% |
| Jul 31, 2013 | -7.38% | 10.80% | 7.15% | — | 11.25% | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -8.87% | -17.36% | 12.63% | -43.55% |
| Jul 31, 2012 | 0.29% | 8.58% | 18.91% | — | 33.17% | — | 15.89% | 19.08% | 23.03% | 26.89% | — | -0.51% | -15.32% | 10.39% | — |
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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Sector (Software & Services)
Palo Alto Networks Inc., net profit margin, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2026 | 2.67% | — |
| Jul 31, 2025 | 12.30% | 26.19% |
| Jul 31, 2024 | 32.11% | 24.83% |
| Jul 31, 2023 | 6.38% | 21.91% |
| Jul 31, 2022 | -4.85% | 21.55% |
| Jul 31, 2021 | -11.72% | 25.12% |
| Jul 31, 2020 | -7.83% | 20.08% |
| Jul 31, 2019 | -2.82% | 21.61% |
| Jul 31, 2018 | -6.51% | 12.10% |
| Jul 31, 2017 | -12.30% | 15.36% |
| Jul 31, 2016 | -16.39% | 16.49% |
| Jul 31, 2015 | -17.78% | 14.57% |
| Jul 31, 2014 | -37.86% | 18.21% |
| Jul 31, 2013 | -7.38% | 20.55% |
| Jul 31, 2012 | 0.29% | 18.62% |
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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).
Comparison to Industry (Information Technology)
Palo Alto Networks Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2026 | 2.67% | — |
| Jul 31, 2025 | 12.30% | 25.66% |
| Jul 31, 2024 | 32.11% | 20.48% |
| Jul 31, 2023 | 6.38% | 20.24% |
| Jul 31, 2022 | -4.85% | 22.27% |
| Jul 31, 2021 | -11.72% | 23.48% |
| Jul 31, 2020 | -7.83% | 19.76% |
| Jul 31, 2019 | -2.82% | 19.73% |
| Jul 31, 2018 | -6.51% | 18.59% |
| Jul 31, 2017 | -12.30% | 17.77% |
| Jul 31, 2016 | -16.39% | 17.58% |
| Jul 31, 2015 | -17.78% | 18.32% |
| Jul 31, 2014 | -37.86% | 19.33% |
| Jul 31, 2013 | -7.38% | 20.15% |
| Jul 31, 2012 | 0.29% | 20.07% |
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), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).