Palo Alto Networks, Inc. (PANW) scored on five pillars from its reported financial statements, and ranked against 260 Technology companies.
Palo Alto Networks, Inc. (PANW) scores 6.5 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on efficiency, and profitability is what holds it back.
One pillar, solvency, is unscored because the filings behind it carry too little to judge. It is shown as a dash rather than a zero, and the overall score is the weighted average of what could be scored.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Palo Alto Networks, Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
On the filings behind it, Palo Alto Networks, Inc. earns 6.5 out of 10 for business quality as of October 16, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.
Ranked with the 260 Technology companies Lemma publishes, the score sits at the 69th percentile, in the upper half of the group, short of the top quarter. The median across the group is 5.9, and the top quarter begins at 6.7, so Palo Alto Networks, Inc. is above the typical company here.
Palo Alto Networks, Inc.’s profitability score is 3.8 out of 10 (weak). Against a median of 4.6 among 252 Technology companies, that is below the group and the 42nd percentile. Low margins and returns leave little cushion, so a downturn or a cost increase reaches the bottom line quickly.
There is no solvency score for Palo Alto Networks, Inc.: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 194 Technology companies the median for this pillar is 8.0. Without it the overall says nothing about how comfortably the company carries its debt.
Growth scores 8.4 out of 10, which reads as strong. The median across 207 Technology companies is 6.4, so Palo Alto Networks, Inc. is well above its peers on this pillar and ranks at the 77th percentile. Strong growth means revenue, earnings and cash flow have been compounding faster than at most peers over the last few years.
Efficiency scores 9.8 out of 10, which reads as strong. The median across 240 Technology companies is 7.1, so Palo Alto Networks, Inc. is well above its peers on this pillar and ranks at the 99th percentile. High efficiency means assets and earnings are being turned into cash and output better than at most peers, a sign of a well run operation.
On predictability, Palo Alto Networks, Inc. scores 5.5, an average reading. Its peers have a median of 4.7 across 258 Technology companies, which places it above them, at the 63rd percentile. Consistency near the median is typical, and it is worth checking whether the swings came from the business itself or from one-off items.
This is a lopsided profile. Efficiency scores 9.8 but profitability only 3.8, a gap of 6.0 points, so the overall hides a business that is excellent in one respect and weak in another. An efficiency lead means the operation turns what it has into cash better than it does anything else. A profitability shortfall is the one most worth understanding, since it bears directly on whether the business creates value.
Closing the gap on profitability would do the most for the overall. At the median of Technology companies, 4.6, Palo Alto Networks, Inc. would score about 6.8 instead of 6.5. Only four of the five pillars could be scored. Together they carry 80 of the 100 weight points (the full set is profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and the overall is the weighted average of those alone.
These are the Technology companies closest to Palo Alto Networks, Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Palo Alto Networks, Inc. scores 6.5 out of 10, which reads as solid quality. Its strongest pillar is efficiency, its weakest is profitability. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Palo Alto Networks, Inc. ranks at the 69th percentile of the 260 Technology companies Lemma publishes a score for. The median there is 5.9 and the top quarter starts at 6.7, against Palo Alto Networks, Inc.’s 6.5.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 16, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for PANW are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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