Return on Equity (ROE)
since 2012
Calculation
Palo Alto Networks Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jul 31, 2026 | 1.12% | = | 100 | × | 307) | ÷ | 27,492) |
| Jul 31, 2025 | 14.49% | = | 100 | × | 1,134) | ÷ | 7,824) |
| Jul 31, 2024 | 49.86% | = | 100 | × | 2,578) | ÷ | 5,170) |
| Jul 31, 2023 | 25.15% | = | 100 | × | 440) | ÷ | 1,748) |
| Jul 31, 2022 | -127.14% | = | 100 | × | (267) | ÷ | 210) |
| Jul 31, 2021 | -78.63% | = | 100 | × | (499) | ÷ | 635) |
| Jul 31, 2020 | -24.23% | = | 100 | × | (267) | ÷ | 1,102) |
| Jul 31, 2019 | -5.16% | = | 100 | × | (82) | ÷ | 1,586) |
| Jul 31, 2018 | -15.30% | = | 100 | × | (148) | ÷ | 966) |
| Jul 31, 2017 | -28.52% | = | 100 | × | (217) | ÷ | 760) |
| Jul 31, 2016 | -28.60% | = | 100 | × | (226) | ÷ | 790) |
| Jul 31, 2015 | -33.81% | = | 100 | × | (165) | ÷ | 488) |
| Jul 31, 2014 | -48.33% | = | 100 | × | (226) | ÷ | 469) |
| Jul 31, 2013 | -10.74% | = | 100 | × | (29) | ÷ | 272) |
| Jul 31, 2012 | 0.32% | = | 100 | × | 1) | ÷ | 229) |
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 net losses followed by a sharp transition to profitability and a subsequent massive expansion of the equity base. This evolution is directly reflected in the Return on Equity (ROE), which moved from deep negative territory to a peak of nearly 50% before trending downward as equity grew exponentially.
- Profitability and Net Income Trends
- A sustained period of net losses was observed from 2013 through 2022, with losses peaking in 2021 at 499 million US$. A significant pivot occurred in 2023, as the company achieved a positive net income of 440 million US$, which surged to a peak of 2,578 million US$ in 2024. However, net income is projected to decline in the subsequent years, falling to 1,134 million US$ in 2025 and 307 million US$ by 2026.
- Stockholders' Equity Dynamics
- Equity levels exhibited volatility between 2012 and 2022, reaching a minimum of 210 million US$ in 2022. Starting in 2023, there was an aggressive increase in stockholders' equity, rising to 1,748 million US$ and continuing a steep upward trajectory to reach 27,492 million US$ by 2026. This represents a massive capital accumulation phase in the latter part of the period.
- Return on Equity (ROE) Analysis
- The ROE remained negative for a decade, reaching its lowest point in 2022 at -127.14%, driven by the combination of net losses and a diminished equity base. The transition to profitability in 2023 and 2024 resulted in a rapid spike in ROE, peaking at 49.86%. Despite remaining positive, the ROE declined sharply to 14.49% in 2025 and further to 1.12% in 2026. This decline is attributed to the disproportionate growth of stockholders' equity relative to the growth of net income, indicating a significant dilution of the return generated on the invested capital.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Palo Alto Networks Inc., ROE, 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 | 1.12% | — | — | — | — | — | — | 24.04% | 30.23% | 40.20% | — | 12.61% | — | — | 8.88% |
| Jul 31, 2025 | 14.49% | 24.61% | 61.34% | 156.17% | 20.26% | 2.89% | 32.45% | 19.63% | 29.65% | 60.84% | 22.00% | 10.13% | 13.48% | 4.70% | 5.82% |
| Jul 31, 2024 | 49.86% | 25.68% | 39.42% | 144.96% | 22.58% | 6.77% | 22.06% | 16.07% | 32.83% | 120.26% | 9.24% | 6.93% | 14.83% | 25.17% | 17.09% |
| Jul 31, 2023 | 25.15% | 26.75% | 32.86% | 28.39% | 30.58% | 2.40% | 33.29% | 13.81% | 35.09% | 792.45% | 6.04% | 0.36% | 22.69% | 20.01% | -6.57% |
| Jul 31, 2022 | -127.14% | 31.11% | 33.85% | -10.13% | 30.93% | -3.56% | 7.47% | 12.57% | 43.68% | — | -14.57% | 2.48% | 6.46% | 17.85% | 0.65% |
| Jul 31, 2021 | -78.63% | 30.25% | 32.59% | 1.66% | 25.39% | -1.99% | 30.38% | 20.89% | 43.15% | 262.43% | -22.71% | 9.81% | 6.22% | 14.31% | -8.62% |
| Jul 31, 2020 | -24.23% | 30.05% | 39.66% | — | 23.69% | -2.56% | 27.14% | 35.76% | 37.43% | 83.94% | -76.61% | 0.37% | 4.18% | 13.54% | -19.33% |
| Jul 31, 2019 | -5.16% | 33.17% | 28.03% | — | 47.03% | -2.14% | 45.25% | 41.53% | 38.35% | 50.87% | — | 7.11% | 29.45% | 13.04% | -21.36% |
| Jul 31, 2018 | -15.30% | 39.17% | 27.67% | — | 26.84% | — | 51.96% | 51.44% | 20.03% | 8.37% | — | 1.36% | -2.40% | 12.43% | -20.33% |
| Jul 31, 2017 | -28.52% | 38.50% | 20.02% | — | 20.63% | — | 32.70% | 71.71% | 29.29% | 17.33% | — | 2.40% | -25.53% | 4.17% | -35.11% |
| Jul 31, 2016 | -28.60% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -0.95% | -116.76% | 8.35% | -25.52% |
| Jul 31, 2015 | -33.81% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -6.61% | -35.01% | 7.21% | -22.02% |
| Jul 31, 2014 | -48.33% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -7.64% | -41.85% | 8.48% | -14.53% |
| Jul 31, 2013 | -10.74% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -11.67% | -18.70% | 8.89% | -20.12% |
| Jul 31, 2012 | 0.32% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | -0.73% | -15.34% | 7.29% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Palo Alto Networks Inc. | Software & Services | |
|---|---|---|
| Jul 31, 2026 | 1.12% | — |
| Jul 31, 2025 | 14.49% | 26.90% |
| Jul 31, 2024 | 49.86% | 28.81% |
| Jul 31, 2023 | 25.15% | 28.49% |
| Jul 31, 2022 | -127.14% | 30.78% |
| Jul 31, 2021 | -78.63% | 35.91% |
| Jul 31, 2020 | -24.23% | 30.34% |
| Jul 31, 2019 | -5.16% | 35.56% |
| Jul 31, 2018 | -15.30% | 20.20% |
| Jul 31, 2017 | -28.52% | 23.83% |
| Jul 31, 2016 | -28.60% | 26.25% |
| Jul 31, 2015 | -33.81% | 23.04% |
| Jul 31, 2014 | -48.33% | 28.09% |
| Jul 31, 2013 | -10.74% | 31.71% |
| Jul 31, 2012 | 0.32% | 32.66% |
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., ROE, long-term trends, comparison to industry (information technology)
| Palo Alto Networks Inc. | Information Technology | |
|---|---|---|
| Jul 31, 2026 | 1.12% | — |
| Jul 31, 2025 | 14.49% | 34.38% |
| Jul 31, 2024 | 49.86% | 28.82% |
| Jul 31, 2023 | 25.15% | 31.26% |
| Jul 31, 2022 | -127.14% | 38.03% |
| Jul 31, 2021 | -78.63% | 41.64% |
| Jul 31, 2020 | -24.23% | 35.38% |
| Jul 31, 2019 | -5.16% | 35.94% |
| Jul 31, 2018 | -15.30% | 30.23% |
| Jul 31, 2017 | -28.52% | 23.19% |
| Jul 31, 2016 | -28.60% | 23.00% |
| Jul 31, 2015 | -33.81% | 25.97% |
| Jul 31, 2014 | -48.33% | 25.43% |
| Jul 31, 2013 | -10.74% | 24.73% |
| Jul 31, 2012 | 0.32% | 26.09% |
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).