Free cash flow
Palo Alto Networks, Inc. Free cash flow increased by 80.5% to $1.69B in Q3 2025 compared to the prior quarter. Year-over-year, this metric grew by 15.1%, from $1.47B to $1.69B. Over 4 years (FY 2021 to FY 2025), Free cash flow shows an upward trend with a 25.8% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
free_cash_flowHistorical Data
| Q1 '21 | Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $250.90M | $298.40M | $554.30M | $401.90M | $351.20M | $484.50M | $1.20B | $656.30M | $400.90M | $376.90M | $1.49B | $654.80M | $491.50M | $465.30M | $1.47B | $509.40M | $560.40M | $934.50M | $1.69B |
| QoQ Change | — | +18.9% | +85.8% | -27.5% | -12.6% | +38.0% | +147.1% | -45.2% | -38.9% | -6.0% | +295.1% | -56.0% | -24.9% | -5.3% | +215.0% | -65.2% | +10.0% | +66.8% | +80.5% |
| YoY Change | — | — | — | — | +40.0% | +62.4% | +116.0% | +63.3% | +14.2% | -22.2% | +24.4% | -0.2% | +22.6% | +23.5% | -1.6% | -22.2% | +14.0% | +100.8% | +15.1% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is Palo Alto Networks, Inc.'s free cash flow?
- Palo Alto Networks, Inc. (PANW) reported free cash flow of $1.69B in Q3 2025.
- How has Palo Alto Networks, Inc.'s free cash flow changed year-over-year?
- Palo Alto Networks, Inc.'s free cash flow increased by 15.1% year-over-year, from $1.47B to $1.69B.
- What is the long-term trend for Palo Alto Networks, Inc.'s free cash flow?
- Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s free cash flow has grown at a 25.8% compound annual growth rate (CAGR), from $1.39B to $3.47B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.