Palo Alto Networks — software card

PANW

LargeRevenue $11.5B TTM4-quarter TTM

Close · Oct 26, 2026390.46P/E n/m · EV $297.7B

EV / revenue25.9×EV / gross profit 36.9×

Rule of 4063growth +24% + FCF +38%

+105% above 5y medianEV / revenue vs. its own five years

Board median EV / revenue12.0×five-year median 11.8× · +1%

Median Rule of 405320 of 24 above the line

Median revenue growth18%a year ago 15% · accelerating

Median SBC / revenue11%FCF margin 30% → 16% ex-SBC

Lights on1 of 3prices Oct 26, 2026 · TTM through Sep 30, 2026

Against the line

growth + FCF margin, in points

line 40score 63

growth 24 ptFCF margin 38 pt

Growth +24% plus FCF margin +38% is 63 points, 23 above the line at 40.

Where it has traded

quarter-end EV / revenue · 20 quarters · Oct 31, 2021 → Jul 31, 2026

Five-year median 12.7×, middle half 10.7–14.7×, range 8.6–22.0×. Now 25.9×: +105% above its own median, higher than 100% of those quarters.Each quarter at its own close, shares and balance sheet · the band is the 25th–75th percentile

What the cash flow really is

TTM through Jul 31, 2026 · $B

No waterfall: the cash-flow window or the SBC line is unusable this run.

Against its scale group

PANW (blue) vs. the other Large companies on the board (14), grey

Revenue growth+24% vs. +27%

Gross margin70% vs. 76%

FCF margin+38% vs. +32%

SBC / revenue— vs. 14%

Rule of 4063 vs. 59

EV / revenue25.9× vs. 20.1×

Group averages are the plain mean of the other companies in the same scale group with a usable window.

Quarter by quarter

8 quarters · Oct 31, 2024 → Jul 31, 2026 · a gap is a dropped quarter

Revenue, $B3.41

Growth YoY, quarter+34%

FCF margin, quarter+37%

SBC / revenue, quarter3%

Lights

on / off, no score

Dilutionon

The diluted share count grew 7.8% in a year

Decelerationoff

Off. Growth +24% vs. +15% a year earlier (light when more than 10 points lower).

Cash burnoff

Off. Trailing FCF is $4.4B.

The numbers

colour = threshold

Revenue growth · a year ago: +24% · +15%
Gross margin · operating margin: 70% · +6%
FCF margin: +38%
Rule of 40: 63
SBC / revenue: —
FCF ex-SBC: —
Shares YoY · buybacks TTM: +7.8% · $1.0B
EV / revenue · EV / GP · EV / FCF: 25.9× · 36.9× · 68×
P/E: n/m
Net cash · share of EV: $571.0M · +0%
Revenue TTM · market cap: $11.5B · $298.3B

Thresholds: growth ≥25% · FCF margin ≥25% · Rule of 40 ≥40 · SBC ≤8% · shares ≤0% are green. Full method → · How to value a software company →

Data quality this run

4-quarter TTM

Stock-based compensation unusable (2026-04-30: stock-based compensation not positive); SBC figures omitted.Prices Oct 26, 2026 · financials TTM through Sep 30, 2026.