PANW Palo Alto Networks margins

Relative Growth: Rel. Growth: 44

Relative Strength: Rel. Strength: 94

Relative Valuation: Rel. Valuation: 5

Relative Profitability: Rel. Profitability: 46

Gross margin

70.4%

Operating margin

6.1%

EBITDA margin

12.8%

Net margin

2.7%

For this period, Palo Alto Networks reports a gross margin of 70.4%, an operating margin of 6.1%, an EBITDA margin of 12.8%, and a net margin of 2.7%. All available margins contracted year over year, led by net margin with a decline of 9.6 percentage points.

PANW margin history

Gross, operating, EBITDA and net margin trends

Palo Alto Networks's margins averaged 73.38% gross, 10.13% operating, 18.35% EBITDA, and 17.62% net during the last 3 years. All four current margins are lower than their three-year averages.

PANW margin expansion

Year-over-year margin changes in percentage points

Net margin led the decline, falling by 9.6 percentage points, while the other available margins also decreased.

Gross margin expansion

-3pp

Operating margin expansion

-7.4pp

EBITDA margin expansion

-8.9pp

Net margin expansion

-9.6pp

PANW Gross margin

Palo Alto Networks recorded an average gross margin of 73.38% across the last 3 years. Palo Alto Networks currently reports a gross margin of 70.4%, 3 percentage points below its three-year average. Over the last 3 years, Palo Alto Networks's gross margin peaked at 74.4% in Apr 2024 and reached a low of 70.4% in Jul 2026.

PANW Operating margin

Over the last 3 years, Palo Alto Networks's operating margin averaged 10.13%. The current operating margin of 6.1% is 4 percentage points below its three-year average. During this period, operating margin reached a high of 14.4% in Jan 2026 and a low of 6.1% in Jul 2026.

PANW EBITDA margin

Across the last 3 years, Palo Alto Networks recorded an average EBITDA margin of 18.35%. Right now, Palo Alto Networks's current EBITDA margin is 12.8%, which is 5.6 percentage points below its three-year average. The highest EBITDA margin for Palo Alto Networks was 23.1% in Jan 2026, while the lowest was 12.8% in Jul 2026.

PANW Net margin

Over the last 3 years, the average net margin for Palo Alto Networks was 17.62%. The latest net margin for Palo Alto Networks is 2.7%, 14.9 percentage points below its three-year average. Palo Alto Networks's net margin ranged from a low of 2.7% in Jul 2026 to a high of 33% in Oct 2024.

PANW margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 70.4%, PANW ranks higher than the Technology sector, the industry and its peers average. In comparison with the Technology sector average of 52.2%, Palo Alto Networks's gross margin is 35% higher.

PANW margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Palo Alto Networks's gross margin?

For the period ending Jul 31, 2026, PANW recorded a gross margin of 70.4%.

What is Palo Alto Networks's operating margin?

For the period ending Jul 31, 2026, PANW recorded an operating margin of 6.1%.

What is Palo Alto Networks's EBITDA margin?

As of Jul 31, 2026, PANW has an EBITDA margin of 12.8%.

What is Palo Alto Networks's net margin?

The current net margin for PANW is 2.7% as of Jul 31, 2026.

What are the average margins of PANW?

Over the past 3 years, PANW reported average margins of 73.4% gross, 10.1% operating, 18.4% EBITDA, and 17.6% net.

What are the highest historical margins of PANW?

Palo Alto Networks's highest recorded margins during the past 5 years were 74.4% gross in Apr 2024, 14.4% operating in Jan 2026, 23.1% EBITDA in Jan 2026, and 33% net in Oct 2024.

What are the lowest historical margins of PANW?

Over this 5-year history, Palo Alto Networks's margins fell as low as 68.8% gross in Jul 2022, -7.5% operating in Oct 2021, -0.6% EBITDA in Oct 2021, and -11.2% net in Oct 2021.