Operating Profit Margin
since 2012
Calculation
Palo Alto Networks Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Jul 31, 2025 | 13.48% | = | 100 | × | 1,242,900) | ÷ | 9,221,500) |
| Jul 31, 2024 | 8.52% | = | 100 | × | 683,900) | ÷ | 8,027,500) |
| Jul 31, 2023 | 5.62% | = | 100 | × | 387,300) | ÷ | 6,892,700) |
| Jul 31, 2022 | -3.43% | = | 100 | × | (188,800) | ÷ | 5,501,500) |
| Jul 31, 2021 | -7.15% | = | 100 | × | (304,100) | ÷ | 4,256,100) |
| Jul 31, 2020 | -5.25% | = | 100 | × | (179,000) | ÷ | 3,408,400) |
| Jul 31, 2019 | -1.87% | = | 100 | × | (54,100) | ÷ | 2,899,600) |
| Jul 31, 2018 | -5.68% | = | 100 | × | (129,100) | ÷ | 2,273,100) |
| Jul 31, 2017 | -10.21% | = | 100 | × | (179,800) | ÷ | 1,761,600) |
| Jul 31, 2016 | -13.79% | = | 100 | × | (190,100) | ÷ | 1,378,500) |
| Jul 31, 2015 | -14.39% | = | 100 | × | (133,536) | ÷ | 928,052) |
| Jul 31, 2014 | -36.00% | = | 100 | × | (215,347) | ÷ | 598,179) |
| Jul 31, 2013 | -4.70% | = | 100 | × | (18,621) | ÷ | 396,107) |
| Jul 31, 2012 | 1.53% | = | 100 | × | 3,891) | ÷ | 255,138) |
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), 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 thousands
- Revenue Trend
- Revenue has shown a consistent and substantial upward trajectory over the observed period, increasing from approximately $255 million in 2012 to an estimated $9.22 billion by 2025. This reflects strong growth and successful expansion in the company's market presence and sales capabilities over the years.
- Operating Income (Loss) Trend
- The operating income exhibits significant volatility and has generally been negative for most years until the recent periods. Initially positive in 2012 at around $3.9 million, it swung to substantial losses from 2013 through 2022, reaching a peak loss of approximately $304 million in 2021. However, a marked reversal occurred starting from 2023, with operating income turning positive to $387 million and continuing to strengthen, reaching an estimated $1.24 billion by 2025. This suggests improvements in operational efficiency or cost management in recent years.
- Operating Profit Margin Analysis
- The operating profit margin closely mirrors the trends in operating income and shows a predominantly negative margin throughout most of the period, indicating operating losses relative to revenue. Margins deteriorated sharply around 2014 with a low of -36%, and although there was some recovery, margins remained negative through 2022. From 2023 onward, the margin shifted positively, increasing to 5.62% and then to an anticipated 13.48% in 2025. The positive margin trajectory aligns with the improvement in operating income and indicates enhanced profitability.
- Overall Insights
- Despite strong revenue growth, the company experienced prolonged periods of operating losses, possibly due to high operating expenses, investments in growth, or market conditions. The recent turnaround in operating income and margins suggests a strategic shift or operational improvements leading to profitability. The sustained revenue increase combined with positive operating margins in the latter years presents a favorable outlook on financial health and operational effectiveness going forward.
Comparison to Competitors
Palo Alto Networks Inc., operating profit margin, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2025 | 13.48% | — | — | — | -3.05% | — | — | 26.14% | 45.62% | 30.80% | — | 19.01% | — | — | 4.91% |
| Jul 31, 2024 | 8.52% | 14.79% | 31.35% | 29.10% | -0.07% | 2.02% | 42.71% | 22.29% | 44.64% | 28.99% | 10.83% | 14.38% | 12.42% | 22.13% | 2.52% |
| Jul 31, 2023 | 5.62% | 13.74% | 34.26% | 30.59% | -8.48% | -1.57% | 42.47% | 21.86% | 41.77% | 26.21% | 5.39% | 3.29% | 8.49% | 21.72% | -3.57% |
| Jul 31, 2022 | -3.43% | 15.21% | 34.64% | 30.15% | -9.82% | -3.50% | 39.38% | 20.20% | 42.06% | 25.74% | -8.46% | 2.07% | 4.90% | 22.87% | -2.27% |
| Jul 31, 2021 | -7.15% | 15.08% | 36.76% | 26.07% | -10.58% | -1.86% | 38.40% | 25.95% | 41.59% | 37.58% | -26.66% | 2.14% | 4.36% | 17.48% | -5.76% |
| Jul 31, 2020 | -5.25% | 14.69% | 32.93% | 24.06% | -30.34% | -2.28% | 22.86% | 28.34% | 37.03% | 35.57% | -107.41% | 1.74% | 4.40% | 16.83% | -13.85% |
| Jul 31, 2019 | -1.87% | 14.59% | 29.25% | 21.05% | — | -5.55% | 21.86% | 27.33% | 34.14% | 34.26% | — | 4.03% | 1.22% | 15.48% | -16.42% |
| Jul 31, 2018 | -5.68% | 14.04% | 31.45% | 18.53% | — | — | 19.99% | 25.10% | 31.77% | 34.34% | — | 2.25% | -1.63% | 11.54% | -14.15% |
| Jul 31, 2017 | -10.21% | 12.60% | 29.69% | 16.67% | — | — | 19.01% | 26.95% | 24.82% | 33.69% | — | 0.77% | -5.25% | 12.76% | -24.00% |
| Jul 31, 2016 | -13.79% | 13.82% | 25.51% | 13.49% | — | — | 19.24% | 26.46% | 23.65% | 34.02% | — | 1.72% | -30.41% | 13.10% | -22.77% |
| Jul 31, 2015 | -14.39% | 13.48% | 18.83% | 16.77% | — | — | 16.39% | 17.60% | 19.41% | 36.29% | — | -2.71% | -16.55% | 11.88% | -27.38% |
| Jul 31, 2014 | -36.00% | 13.49% | 9.95% | 13.07% | — | — | 20.52% | 29.16% | 31.97% | 38.56% | — | -7.03% | -22.24% | 12.09% | -32.69% |
| Jul 31, 2013 | -4.70% | 14.27% | 10.42% | 12.94% | — | — | 21.74% | 29.56% | 34.38% | 39.49% | — | -3.63% | -15.61% | 12.56% | -43.07% |
| Jul 31, 2012 | 1.53% | 13.00% | 26.80% | 15.96% | — | — | 24.89% | 28.35% | 29.52% | 36.92% | — | -1.55% | -15.42% | 10.82% | — |
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), 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).