Return on Assets (ROA)
since 2012
Calculation
Palo Alto Networks Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 0.63% | = | 100 | × | 307) | ÷ | 48,460) |
| Jul 31, 2025 | 4.81% | = | 100 | × | 1,134) | ÷ | 23,576) |
| Jul 31, 2024 | 12.89% | = | 100 | × | 2,578) | ÷ | 19,991) |
| Jul 31, 2023 | 3.03% | = | 100 | × | 440) | ÷ | 14,501) |
| Jul 31, 2022 | -2.18% | = | 100 | × | (267) | ÷ | 12,254) |
| Jul 31, 2021 | -4.87% | = | 100 | × | (499) | ÷ | 10,242) |
| Jul 31, 2020 | -2.95% | = | 100 | × | (267) | ÷ | 9,065) |
| Jul 31, 2019 | -1.24% | = | 100 | × | (82) | ÷ | 6,592) |
| Jul 31, 2018 | -2.54% | = | 100 | × | (148) | ÷ | 5,823) |
| Jul 31, 2017 | -6.30% | = | 100 | × | (217) | ÷ | 3,438) |
| Jul 31, 2016 | -8.18% | = | 100 | × | (226) | ÷ | 2,761) |
| Jul 31, 2015 | -8.40% | = | 100 | × | (165) | ÷ | 1,965) |
| Jul 31, 2014 | -15.32% | = | 100 | × | (226) | ÷ | 1,478) |
| Jul 31, 2013 | -4.99% | = | 100 | × | (29) | ÷ | 586) |
| Jul 31, 2012 | 0.18% | = | 100 | × | 1) | ÷ | 408) |
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 negative returns on assets followed by a sharp transition toward profitability and a subsequent decline in asset efficiency.
- Long-term Asset Growth and Profitability Lag
- A consistent and aggressive expansion of the asset base is observed, with total assets increasing from 408 million US dollars in 2012 to 48.46 billion US dollars by 2026. For the majority of this period, specifically between 2013 and 2022, the return on assets (ROA) remained negative, reflecting a strategic phase where asset accumulation outpaced net income generation. The most significant negative peak occurred in 2014, with an ROA of -15.32%.
- Profitability Pivot and Peak Efficiency
- A fundamental shift in financial performance occurred in 2023, marking the first instance of positive ROA (3.03%) following a decade of losses. This trend culminated in 2024, where the ROA reached a peak of 12.89%, driven by a substantial increase in net income to 2.578 billion US dollars against a total asset base of 19.99 billion US dollars.
- Recent Efficiency Compression
- Following the 2024 peak, a marked decline in ROA is evident. By 2026, the ROA dropped to 0.63%. This compression is attributed to a dual impact: a significant reduction in net income from 2.578 billion US dollars in 2024 to 307 million US dollars in 2026, coupled with a rapid doubling of the asset base to 48.46 billion US dollars. This indicates a substantial increase in capital employed that has not yet translated into proportional earnings growth.
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Comparison to Competitors
Palo Alto Networks Inc., ROA, 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 | 0.63% | — | — | — | — | — | — | 12.41% | 17.64% | 6.53% | — | 6.64% | — | — | 3.83% |
| Jul 31, 2025 | 4.81% | 11.74% | 24.17% | 45.92% | 10.92% | 1.62% | 6.97% | 10.47% | 16.45% | 7.39% | 18.26% | 6.02% | 6.71% | 2.76% | 2.93% |
| Jul 31, 2024 | 12.89% | 12.99% | 18.39% | 26.92% | 11.76% | 3.18% | 4.39% | 9.22% | 17.21% | 7.42% | 7.29% | 4.14% | 6.99% | 17.31% | 8.39% |
| Jul 31, 2023 | 3.03% | 13.41% | 18.23% | 6.66% | 18.36% | 1.23% | 5.55% | 8.58% | 17.56% | 6.33% | 4.64% | 0.21% | 9.96% | 11.90% | -2.72% |
| Jul 31, 2022 | -2.18% | 14.55% | 17.51% | -3.30% | 16.53% | -1.67% | 1.29% | 7.45% | 19.94% | 6.15% | -10.80% | 1.52% | 2.44% | 10.45% | 0.28% |
| Jul 31, 2021 | -4.87% | 13.68% | 17.70% | 0.58% | 15.87% | -0.87% | 4.35% | 13.29% | 18.36% | 10.48% | -16.02% | 6.14% | 2.13% | 8.66% | -3.24% |
| Jul 31, 2020 | -2.95% | 13.78% | 21.66% | — | 14.95% | -1.30% | 3.58% | 16.70% | 14.70% | 8.78% | -43.35% | 0.23% | 1.36% | 8.27% | -7.05% |
| Jul 31, 2019 | -1.24% | 16.04% | 14.22% | — | 29.46% | -1.61% | 6.20% | 24.78% | 13.69% | 10.20% | — | 3.61% | 10.41% | 8.31% | -7.58% |
| Jul 31, 2018 | -2.54% | 16.61% | 13.80% | — | 14.01% | — | 7.07% | 23.39% | 6.40% | 2.79% | — | 0.61% | -0.69% | 7.04% | -6.49% |
| Jul 31, 2017 | -6.30% | 15.18% | 11.65% | — | 8.44% | — | 4.59% | 23.87% | 8.80% | 6.92% | — | 1.02% | -4.39% | 2.53% | -12.89% |
| Jul 31, 2016 | -8.18% | 19.95% | 9.20% | — | 9.69% | — | 10.11% | 23.04% | 8.67% | 7.93% | — | -0.37% | -22.22% | 5.09% | -10.62% |
| Jul 31, 2015 | -8.40% | 16.72% | 5.37% | — | 10.74% | — | 11.94% | 7.35% | 6.92% | 8.96% | — | -2.46% | -10.98% | 4.48% | -10.51% |
| Jul 31, 2014 | -15.32% | 16.41% | 2.49% | — | 4.95% | — | 10.23% | 17.44% | 12.81% | 12.13% | — | -2.54% | -12.59% | 5.43% | -7.93% |
| Jul 31, 2013 | -4.99% | 19.46% | 2.79% | — | 6.76% | — | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.89% | -6.31% | 5.68% | -12.43% |
| Jul 31, 2012 | 0.18% | 15.32% | 8.35% | — | 19.24% | — | 13.93% | 16.91% | 14.00% | 12.74% | — | -0.28% | -7.81% | 4.40% | — |
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., ROA, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2026 | 0.63% | — |
| Jul 31, 2025 | 4.81% | 12.15% |
| Jul 31, 2024 | 12.89% | 12.26% |
| Jul 31, 2023 | 3.03% | 11.19% |
| Jul 31, 2022 | -2.18% | 11.32% |
| Jul 31, 2021 | -4.87% | 12.19% |
| Jul 31, 2020 | -2.95% | 9.68% |
| Jul 31, 2019 | -1.24% | 10.81% |
| Jul 31, 2018 | -2.54% | 6.11% |
| Jul 31, 2017 | -6.30% | 7.29% |
| Jul 31, 2016 | -8.18% | 8.86% |
| Jul 31, 2015 | -8.40% | 8.53% |
| Jul 31, 2014 | -15.32% | 11.18% |
| Jul 31, 2013 | -4.99% | 13.46% |
| Jul 31, 2012 | 0.18% | 13.36% |
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., ROA, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2026 | 0.63% | — |
| Jul 31, 2025 | 4.81% | 15.31% |
| Jul 31, 2024 | 12.89% | 11.80% |
| Jul 31, 2023 | 3.03% | 12.34% |
| Jul 31, 2022 | -2.18% | 14.33% |
| Jul 31, 2021 | -4.87% | 14.52% |
| Jul 31, 2020 | -2.95% | 11.46% |
| Jul 31, 2019 | -1.24% | 11.67% |
| Jul 31, 2018 | -2.54% | 10.94% |
| Jul 31, 2017 | -6.30% | 9.00% |
| Jul 31, 2016 | -8.18% | 9.68% |
| Jul 31, 2015 | -8.40% | 11.51% |
| Jul 31, 2014 | -15.32% | 12.33% |
| Jul 31, 2013 | -4.99% | 13.22% |
| Jul 31, 2012 | 0.18% | 14.06% |
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).