Income StatementBalance SheetCash FlowSegments
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Palo Alto Networks, Inc. Cash Flow Statement

Operating, investing, and financing cash movements

Palo Alto Networks, Inc. generated $4.0B in operating cash flow over the trailing twelve months. After $408.2M in capital expenditures, free cash flow was $3.6B. Free cash flow increased 0.2% year-over-year. Based on the Q1 2026 filing.

Net Cash From Operating (TTM)$4.0BNet Cash From Investing (TTM)-$2.6BNet Cash From Financing (TTM)-$480.1MCapital Expenditures (TTM)$408.2MDepreciation And Amortization Cf (TTM)$352.4MNet Change In Cash (TTM)$131.9M
Latest FilingQ1 2026
Report Date2026-02-18
Market Cap$211.33B
P/E Ratio164.86
ROE16.26%

Financing

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Payment for contingent consideration liability (financing)$0.0$0.0——$121.0M$14.0M
Payment for Contingent Consideration (Financing)$0.0$0.0——$121.0M$14.0M
Repayments of Convertible Debt$319.0M$113.0M$150.3M$383.3M$0.0$0.0
Repayments of debt$319.0M$113.0M$150.3M$383.3M$0.0$0.0
Proceeds from exercises of stock options and other stock issuances$121.0M$37.0M$202.6M$9.9M$130.0M$8.0M
Repayments of Convertible Debt$319.0M$113.0M$150.3M$383.3M$0.0$0.0
Payment of Deferred Purchase Consideration$0.0$0.0——$121.0M$14.0M
Net cash from financing activities-$220.0M-$232.0M$0.0-$374.1M$8.0M-$114.0M
Other financing activities$0.0$0.0——$121.0M$14.0M
Proceeds from issuance of common stock$121.0M$37.0M$202.6M$9.9M$130.0M$8.0M
Taxes paid for net share settlement$22.0M$156.0M$5.1M$700.0K$1.0M$108.0M

Investing

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Acquisitions, net of cash acquired$500.0M$0.0$500.0K$554.9M$2.0M$2.6B
Sales of short-term available-for-sale investments$291.0M$354.0M$184.9M$367.0M$30.0M$2.8B
Capital expenditures$44.0M$48.0M$67.9M$86.3M$84.0M$170.0M
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-Sale$369.0M$384.0M$455.5M$386.4M$474.0M$1.1B
Sale of investments$291.0M$354.0M$184.9M$367.0M$30.0M$2.8B
Net cash from investing activities-$544.0M-$381.0M-$517.2M-$762.5M-$983.0M—
Proceeds from maturities/sales of investments$369.0M$276.0M$563.5M$386.4M$474.0M$2.3B
Purchases of investments$660.0M$1.1B$1.1B$874.7M$1.4B$524.0M

Operating

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Amortization of debt issuance costs$500.0K$500.0K$0.0$100.0K——
Amortization of deferred commissions$110.0M$115.0M$119.1M$136.5M$126.0M$135.0M
Amortization of Investment Discount and Premium$15.0M$11.0M$9.2M$5.9M$7.0M$45.0M
Accretion (amortization) of discounts and premiums on investments$15.0M$11.0M$9.2M$5.9M$7.0M$45.0M
Change in accounts payable$97.0M—$85.7M—-$2.0M$42.0M
Change in accounts receivable-$1.5B——$1.0B-$1.6B—
Change in accrued liabilities-$94.0M$31.0M$97.6M$112.9M-$53.0M—
Change in deferred revenue-$416.0M$169.0M$310.4M$1.2B-$522.0M—
Change in other assets$4.0M-$93.0M—-$20.5M$33.0M$12.0M
Change in fair value of contingent consideration$6.0M$10.0M$4.3M-$155.6M-$13.0M—
Change in Finance Receivables-$11.0M$22.0M-$112.8M-$89.3M-$125.0M-$50.0M
Deferred income taxes-$137.0M-$180.0M-$124.5M—$9.0M$5.0M
Depreciation and amortization$84.0M$87.0M$88.6M$83.8M$89.0M$91.0M
Accretion (Amortization) of Investment Discounts and Premiums$15.0M$11.0M$9.2M$5.9M$7.0M$45.0M
Amortization of Contract Acquisition Assets$110.0M$115.0M$119.1M$136.5M$126.0M$135.0M
Net cash from operating activities$1.5B$557.0M$628.2M$1.0B$1.8B$554.0M
Net income$351.0M$267.0M$262.1M$253.8M$334.0M$432.0M
Accretion (Amortization) of Discounts and Premiums, Investments$15.0M$11.0M$9.2M$5.9M$7.0M$45.0M
Non-cash interest expense$500.0K$500.0K$0.0$100.0K——
Contingent consideration fair value adjustments$6.0M$10.0M$4.3M-$155.6M-$13.0M—
Amortization of costs capitalized to obtain revenue contracts, net$110.0M$115.0M$119.1M$136.5M$126.0M$135.0M
Accrued expenses and other liabilities-$94.0M$95.0M$33.6M$112.9M-$53.0M$76.0M
Increase (Decrease) In Capitalized Contract Cost$79.0M$114.0M$135.4M$226.6M$82.0M$124.0M
Accrued compensation and employee benefits-$201.0M——$99.8M-$210.0M—
Increase (Decrease) in Prepaid Expense and Other Assets$4.0M-$93.0M—-$20.5M$33.0M$12.0M
Non-cash operating lease expense$16.0M$16.0M$16.1M$17.3M$18.0M$17.0M
Operating lease right-of-use asset amortization$16.0M$16.0M$16.1M$17.3M$18.0M$17.0M
Accretion (Amortization) of Investment Discounts and Premiums$15.0M$11.0M$9.2M$5.9M$7.0M$45.0M
Stock-based compensation$295.0M$320.0M$325.7M$354.4M$370.0M$301.0M

Free Cash Flow

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Free cash flow$1.5B$509.0M$560.3M$934.5M$1.7B$384.0M

Supplemental

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Income taxes paid$126.4M$126.4M$126.4M$126.4M——
Income Taxes Paid, Net$126.4M$126.4M$126.4M$126.4M——
Cash paid for contractual interest$425.0K$425.0K$425.0K$425.0K——

Other

MetricQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Contingent consideration (receivable) payable - financing activities$0.0$0.0——$121.0M$14.0M
Net increase (decrease) in cash$746.0M—$158.2M—$796.0M$1.1B
Contingent consideration for a business acquisition-$649.0M$1.3B-$1.3B$0.0$0.0$0.0