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, 2026 | 6.05% | = | 100 | × | 695) | ÷ | 11,480) |
| Jul 31, 2025 | 13.48% | = | 100 | × | 1,243) | ÷ | 9,222) |
| Jul 31, 2024 | 8.52% | = | 100 | × | 684) | ÷ | 8,028) |
| Jul 31, 2023 | 5.62% | = | 100 | × | 387) | ÷ | 6,893) |
| Jul 31, 2022 | -3.43% | = | 100 | × | (189) | ÷ | 5,502) |
| Jul 31, 2021 | -7.15% | = | 100 | × | (304) | ÷ | 4,256) |
| Jul 31, 2020 | -5.25% | = | 100 | × | (179) | ÷ | 3,408) |
| Jul 31, 2019 | -1.87% | = | 100 | × | (54) | ÷ | 2,900) |
| Jul 31, 2018 | -5.68% | = | 100 | × | (129) | ÷ | 2,273) |
| Jul 31, 2017 | -10.21% | = | 100 | × | (180) | ÷ | 1,762) |
| Jul 31, 2016 | -13.79% | = | 100 | × | (190) | ÷ | 1,379) |
| Jul 31, 2015 | -14.39% | = | 100 | × | (134) | ÷ | 928) |
| Jul 31, 2014 | -36.00% | = | 100 | × | (215) | ÷ | 598) |
| Jul 31, 2013 | -4.70% | = | 100 | × | (19) | ÷ | 396) |
| Jul 31, 2012 | 1.53% | = | 100 | × | 4) | ÷ | 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 trajectory from 2012 to 2026 is characterized by a prolonged period of strategic investment and operating losses, followed by a transition toward operational profitability. While revenue demonstrated consistent and significant growth throughout the entire period, the operating profit margin experienced substantial volatility before stabilizing in positive territory starting in 2023.
- Revenue Growth and Scale
- A continuous upward trend in revenue is observed, scaling from 255 million US dollars in 2012 to 11.48 billion US dollars by 2026. This steady expansion indicates a successful increase in market penetration and scale, providing the necessary foundation for the eventual shift in operating margins.
- Operational Loss Phase (2013–2022)
- Following a marginal profit in 2012, the company entered a decade-long period of operating losses. The most severe contraction occurred in 2014, with the operating profit margin dropping to -36.00%. A gradual recovery trend was evident between 2015 and 2019, where margins improved from -14.39% to -1.87%. However, this progress was interrupted in 2020 and 2021, with margins dipping back to -5.25% and -7.15% respectively, suggesting a phase of renewed aggressive spending or operational headwinds.
- Pivot to Profitability (2023–2026)
- A fundamental shift in operational efficiency occurred in 2023, as the company achieved a positive operating profit margin of 5.62% and an operating income of 387 million US dollars. This positive momentum accelerated through 2024 and peaked in 2025, reaching an operating profit margin of 13.48% and a record operating income of 1.243 billion US dollars. A subsequent contraction is noted in 2026, where the operating profit margin declined to 6.05% and operating income fell to 695 million US dollars, despite continued revenue growth.
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Comparison to Competitors
Palo Alto Networks Inc., operating profit margin, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 6.05% | 15.38% | — | — | — | — | 27.43% | 46.78% | 30.59% | — | 20.06% | — | — | 7.55% |
| Jul 31, 2025 | 13.48% | 14.68% | 36.63% | 75.75% | 28.17% | -1.29% | 26.14% | 45.62% | 30.80% | 31.59% | 19.01% | 13.74% | 12.97% | 4.91% |
| Jul 31, 2024 | 8.52% | 14.79% | 31.35% | 39.78% | 29.10% | 2.02% | 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% | 19.74% | 30.59% | -1.57% | 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% | -1.70% | 30.15% | -3.50% | 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% | 5.37% | 26.07% | -1.86% | 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% | -2.28% | 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% | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 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% | — | 28.35% | 29.52% | 36.92% | — | -1.55% | -15.42% | 10.82% | — |
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).