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, 2025 | 14.49% | = | 100 | × | 1,133,900) | ÷ | 7,824,400) |
| Jul 31, 2024 | 49.86% | = | 100 | × | 2,577,600) | ÷ | 5,169,700) |
| Jul 31, 2023 | 25.15% | = | 100 | × | 439,700) | ÷ | 1,748,400) |
| Jul 31, 2022 | -127.14% | = | 100 | × | (267,000) | ÷ | 210,000) |
| Jul 31, 2021 | -78.63% | = | 100 | × | (498,900) | ÷ | 634,500) |
| Jul 31, 2020 | -24.23% | = | 100 | × | (267,000) | ÷ | 1,101,800) |
| Jul 31, 2019 | -5.16% | = | 100 | × | (81,900) | ÷ | 1,586,300) |
| Jul 31, 2018 | -15.30% | = | 100 | × | (147,900) | ÷ | 966,400) |
| Jul 31, 2017 | -28.52% | = | 100 | × | (216,600) | ÷ | 759,600) |
| Jul 31, 2016 | -28.60% | = | 100 | × | (225,900) | ÷ | 789,900) |
| Jul 31, 2015 | -33.81% | = | 100 | × | (164,982) | ÷ | 487,899) |
| Jul 31, 2014 | -48.33% | = | 100 | × | (226,452) | ÷ | 468,583) |
| Jul 31, 2013 | -10.74% | = | 100 | × | (29,246) | ÷ | 272,420) |
| Jul 31, 2012 | 0.32% | = | 100 | × | 737) | ÷ | 229,071) |
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
- Net Income (Loss) Trends
- The company experienced negative net income for a prolonged period spanning from 2013 through 2022, with losses peaking in 2021 at approximately -$498.9 million. Earlier years showed a worsening trend from a modest income of $737 thousand in 2012 to substantial losses in the subsequent years. However, a notable recovery occurred in 2023 and 2024, with net income turning positive—reaching $439.7 million and $2.58 billion respectively—before decreasing to $1.13 billion in 2025. This suggests a significant turnaround in profitability after more than a decade of losses.
- Stockholders' Equity Dynamics
- Stockholders’ equity exhibited an overall upward trajectory from 2012 through 2025. Starting at $229 million in 2012, equity increased steadily, with some fluctuations, reaching approximately $7.82 billion by 2025. The most rapid growth phases occurred between 2015 and 2019, and then again between 2022 and 2025. The dip observed in 2020 and 2021, where equity fell to a low around $634.5 million, indicates a period of stress or capital restructuring. The recovery and subsequent growth beyond 2021 indicate strengthening financial stability and possibly capital infusion or retained earnings accumulation.
- Return on Equity (ROE) Analysis
- ROE data reflects the company’s profitability relative to shareholder equity and reveals a pattern consistent with net income trends. ROE was positive but minimal in 2012 at 0.32%, followed by sustained negative values from 2013 through 2022, with the lowest values occurring in 2021 (-127.14%). This indicates significant inefficiency in generating returns during the loss periods. Beginning in 2023, there was a notable improvement as ROE shifted to positive territory (25.15%), with a further increase to 49.86% in 2024 before moderating to 14.49% in 2025. This trend confirms the shift to profitability and enhanced value creation for shareholders in recent years.
- Overall Financial Health Assessment
- The analysis points to an extended period of financial distress marked by large losses and negative returns, affecting shareholder equity growth. However, a pronounced recovery phase emerges beginning in 2023. The substantial turnaround in net income and ROE, coupled with the growing stockholders’ equity, signifies improved operational performance and effective capital management. The stabilization and positive trajectory project enhanced financial resilience and potential for sustained shareholder value generation moving forward.
Comparison to Competitors
Palo Alto Networks Inc., ROE, long-term trends, comparison to competitors
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings 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, 2025 | 14.49% | 24.61% | — | — | -0.59% | — | — | 19.63% | 29.65% | 60.84% | — | 10.13% | — | — | 5.82% |
| Jul 31, 2024 | 49.86% | 25.68% | 39.42% | 22.58% | 3.88% | 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% | 30.58% | -12.52% | 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% | 30.93% | -22.89% | -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% | 25.39% | -10.64% | -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% | -19.10% | -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: 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, 2025 | 14.49% | — |
| Jul 31, 2024 | 49.86% | 28.42% |
| Jul 31, 2023 | 25.15% | 28.33% |
| Jul 31, 2022 | -127.14% | 30.85% |
| Jul 31, 2021 | -78.63% | 36.03% |
| Jul 31, 2020 | -24.23% | 30.18% |
| 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: 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, 2025 | 14.49% | — |
| Jul 31, 2024 | 49.86% | 29.23% |
| Jul 31, 2023 | 25.15% | 31.86% |
| Jul 31, 2022 | -127.14% | 38.98% |
| Jul 31, 2021 | -78.63% | 42.34% |
| Jul 31, 2020 | -24.23% | 35.67% |
| Jul 31, 2019 | -5.16% | 36.60% |
| Jul 31, 2018 | -15.30% | 30.38% |
| Jul 31, 2017 | -28.52% | 23.40% |
| Jul 31, 2016 | -28.60% | 23.35% |
| Jul 31, 2015 | -33.81% | 26.17% |
| Jul 31, 2014 | -48.33% | 25.61% |
| Jul 31, 2013 | -10.74% | 24.89% |
| Jul 31, 2012 | 0.32% | 26.24% |
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).