PANWPalo Alto Networks Inc

Computer Peripheral Equipment, NEC

Revenue: $11.5B; 24% YoY
Operating margin: 6.1%; 55% YoY
EBITDA: $1.6B; 2.3% YoY
Market cap: $298.2B
Employees: 21,921; $524K revenue each
Net debt / EBITDA: -0.3×; −$523M net debt
AI in 10-K: 30.2; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 3 of 7

TSR below peersNo
0 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$80M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
15× net income
Cash flow under 80% of net income
Dilutive SBCYes
15% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
22% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
45% of assets
Over 40% of assets
Shareholder dissentYes
47% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$524K · 69th pct
Bottom quartile of its SIC industry
Quiet on AINo
30.2 per 10K words · 100th pct
Bottom quartile of AI mentions in 10-Ks
Net cashYes
Net cash · 0.3× EBITDA
More cash than debt, positive EBITDA
Buyout-sizedNo
$298.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$123M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$5.5B	$6.9B	$8.0B	$9.2B	$11.5B	24%
Operating income	−$189M	$387M	$684M	$1.2B	$695M	44%
Net income	−$267M	$440M	$2.6B	$1.1B	$307M	73%
Operating cash flow	$2.0B	$2.8B	$3.3B	$3.7B	$4.6B	23%
Capex	$193M	$146M	$157M	$247M	$440M	78%
Stock-based comp	$1.0B	$1.1B	$1.1B	$1.3B	$1.8B	37%
Buybacks	$892M	$273M	$567M	$0	$1.0B

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $10M · 2
Open-market sells, 12 mo: $133M · 101
Net: −$123M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	$80M	$814M	499	253
FY2025	$100M	$267M	261	200
FY2024	$58M	$105M	244	162
FY2023	$151M	$266M	188	120
FY2022	$10M	$209M	125	94