Palo Alto Networks Inc. (NASDAQ:PANW)

The financial data indicates significant growth in revenue over the analyzed period, increasing consistently from approximately $255 million in 2012 to over $8 billion in 2024. This represents a substantial compound growth rate, showing that the company has significantly expanded its operations and market presence.

Despite this revenue growth, operating income (loss) reveals a volatile pattern with notable fluctuations. Initially, the company recorded a positive operating income in 2012, followed by sustained losses through most of the subsequent years up to 2022. The losses peaked around 2021 with an operating loss of approximately $304 million. However, a marked turnaround is observed in the final two years, with operating income returning to positive territory and reaching $683.9 million in 2024.

The operating profit margin metric aligns with these trends, exhibiting negative values for the majority of the period, reflecting operating losses as a percentage of revenue. The margin was most negative around 2014 (-36%) before generally improving. From 2022 onward, the margin turned positive, with 5.62% in 2023 and increasing further to 8.52% in 2024, indicating improved operational efficiency and profitability.

Revenue Trends

Consistently rising from $255 million in 2012 to $8 billion in 2024, showing robust top-line expansion.

Operating Income (Loss) Trends

Initial positive operating income in 2012, followed by losses through 2013 to 2022, peaking in 2021 with a loss around $304 million. Recovery leads to positive income in 2023 and a substantial increase in 2024 to $683.9 million.

Operating Profit Margin Trends

Negative margins dominated the early and middle years, reaching a low of -36% in 2014; gradual improvement occurred, turning positive in 2023 and rising to 8.52% in 2024, indicating newly established profitability.