What is Palo Alto Networks, Inc.'s R&D?

Palo Alto Networks, Inc. (PANW) reported R&D of $734M in Q1 2026.

How has Palo Alto Networks, Inc.'s R&D changed year-over-year?

Palo Alto Networks, Inc.'s R&D increased by 48.6% year-over-year, from $494M to $734M.

What is the long-term trend for Palo Alto Networks, Inc.'s R&D?

Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s R&D has grown at a 14.8% compound annual growth rate (CAGR), from $1.14B to $1.98B.

Costs of research activities to discover new knowledge and development activities to translate research into new or improved products, services, processes, or technologies.

Palo Alto Networks, Inc. PANW R&D

R&D at other companies

MicrosoftMSFT

$8.92B+8.7%

Cisco Systems, Inc.CSCO

$2.38B+1.8%

F5, Inc.FFIV

$151.04M+10.6%

VirnetX Holding Corp VHC

$1.16M-7.7%

Akamai TechnologiesAKAM

$141.58M+14.6%

Qualys, Inc.QLYS

$29.02M-0.5%

Other financials

Income statement

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Revenue$3.0B+31.1%

Gross profit$2.0B+21.4%

Operating income-$183.0M-184%

Net income-$177.0M-168%

EPS (diluted)-$0.22-159%

Balance sheet

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Cash & equivalents$2.4B-0.9%

Total debt$2.2B+206%

Total equity$27.7B+283%

Total assets$46.3B+110%

Cash flow

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Operating cash flow$871.0M+38.7%

CapEx$83.0M+22.1%

Free cash flow$788.0M+40.7%

Valuation

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Market cap$277.93B+110%

Enterprise value$277.79B+113%

P/E329.7×+223×

P/S26.2×+11.3×

Profitability

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Gross margin71.9%-1.6pp

Operating margin9.6%-1.5pp

Net margin7.9%-6.0pp

FCF margin35.8%+2.0pp

Returns & leverage

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Return on equity4.8%-16.3pp

Debt / equity0.1×0.0×

Current ratio0.9×0.0×

Where this comes from

Reported directly by Palo Alto Networks, Inc. in its filing.

Tagged under the XBRL concept us-gaap:ResearchAndDevelopmentExpense.

The official record: Palo Alto Networks, Inc.’s 10-Q, filed June 3, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Palo Alto Networks, Inc.'s R&D?: Palo Alto Networks, Inc. (PANW) reported R&D of $734M in Q1 2026.
How has Palo Alto Networks, Inc.'s R&D changed year-over-year?: Palo Alto Networks, Inc.'s R&D increased by 48.6% year-over-year, from $494M to $734M.
What is the long-term trend for Palo Alto Networks, Inc.'s R&D?: Over 4 years (2021 to 2025), Palo Alto Networks, Inc.'s R&D has grown at a 14.8% compound annual growth rate (CAGR), from $1.14B to $1.98B.
What does R&D mean?: Costs of research activities to discover new knowledge and development activities to translate research into new or improved products, services, processes, or technologies.