# Palo Alto Networks (PANW) Forecast Calculator

Interactive five-year financial forecast and DCF for Palo Alto Networks. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/palo-alto-networks/forecast
- Industry: Technology
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 2899600000 | 924400000 | 99700000 | -81900000 |
| 2022 | 3408400000 | 821300000 | 27100000 | -267000000 |
| 2023 | 4256100000 | 1387000000 | -43700000 | -498900000 |
| 2024 | 5501500000 | 1791900000 | 93800000 | -267000000 |
| 2025 | 6892700000 | 2631200000 | 669500000 | 439700000 |

## Frequently asked questions

### What does Palo Alto Networks do?

Palo Alto Networks is a global cybersecurity leader providing network security, cloud security, and security operations solutions. The company has successfully transitioned from a legacy hardware firewall vendor into a software and cloud-centric security platform provider.

### What are Palo Alto Networks' primary revenue drivers?

Approximately 80% of Palo Alto Networks' revenue comes from its Subscription and Support segment, with the remaining 20% from Product sales. Its business model is highly recurring and subscription-based, characterized by strong deferred revenue generation.

### What are the key capital expenditure assumptions for Palo Alto Networks' financial model?

Palo Alto Networks' capital expenditure is projected at approximately 2% to 3% of revenue, split evenly between maintenance and growth capex. Major investments are planned for AI infrastructure and data center footprint to enhance proprietary threat intelligence.

### Why does Palo Alto Networks have negative net working capital?

Palo Alto Networks exhibits highly negative net working capital, typically around -30% to -40% of revenue. This is because the company collects cash upfront for multi-year subscriptions, while recognizing revenue over time, effectively funding its growth through its working capital.

### Can I download a financial model for Palo Alto Networks?

Yes, a downloadable Excel model is available to evaluate Palo Alto Networks' equity valuation and cash flow generation capacity. This model helps analysts determine if the company's transition to a platformised, recurring-revenue model justifies its premium market multiple.

### How does Palo Alto Networks compete in the cybersecurity market?

Palo Alto Networks holds a leading competitive position with approximately 9% market share in the fragmented cybersecurity industry. The company competes directly with Fortinet, CrowdStrike, Zscaler, and Microsoft, and is executing a "platformisation" strategy to consolidate vendor sprawl for clients.