PANW on Decifer

Why it ranks here

• Its returns on invested money are modest, around 6% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 21% a year, profits are expected to grow 9%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• We do not have a clean read on how it is run yet.
• Our durability check found pressure on this name, which costs it a few points.

The current read

The evidence on PANW lines up on the supportive side: fresh news: Move Over Memory, Fortinet Earnings Show Cybersecurity Stocks Are Red-Hot AI Plays. The independent signals we track are telling the same story.

Themes

• Cybersecurity: Palo Alto Networks is a leading cybersecurity platform provider. Rising cyber risk and board-level security spend drive PANW's Next-Generation Security platform adoption across enterprise and government.

Read the full PANW research brief · See all quality rankings

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