Palo Alto Networks (PANW) Q4 FY2022 earnings: revenue $1.6 billion, up 27.2% on the year

Palo Alto Networks Inc. (PANW) reported revenue of $1.6 billion for Q4 FY2022, the quarter ended 31 July 2022, up 27.2% on the same quarter a year earlier. Net income was $3 million. The figures are the company's own, from the 10-K it filed with the SEC on 6 September 2022.

Revenue$1.6 billionup 27.2%

Net income$3 million

Diluted EPSn/a

QuarterQ4 FY2022ended 31 July 2022

The quarter, against the one before and a year earlier

Line	Q4 FY2022	Q3 FY2022	A year earlier	Change on the year
Revenue	1,550	1,387	n/a	n/a
Cost of revenue	492	440	n/a	n/a
Gross profit	1,058	946	n/a	n/a
Gross margin	68.2%	68.2%	n/a
Research and development	364	355	n/a	n/a
Operating income	15.4	-47.6	n/a	n/a
Operating margin	1.0%	-3.4%	n/a
Interest expense	6.9	6.8	n/a	n/a
Pre-tax income	17.3	-52.5	n/a	n/a
Income tax	14.0	20.7	n/a	n/a
Effective tax rate	80.9%	n/a	n/a
Net income	3.3	-73.2	n/a	n/a
Net margin	0.2%	-5.3%	n/a
Diluted EPS	n/a	-$0.12	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2022	Q3 FY2022	A year earlier	Change on the year
Operating cash flow	524	390	n/a	n/a
Capital expenditure	39.2	0.0	n/a	n/a
Free cash flow	484	390	n/a	n/a
Free cash flow margin	31.2%	28.1%	n/a
Cash from investing	-472	42.9	n/a	n/a
Cash from financing	-353	66.3	n/a	n/a
Depreciation and amortisation	72.5	71.4	n/a	n/a
Share-based compensation	240	247	n/a	n/a
Buybacks	342	0.0	n/a	n/a
Diluted shares, weighted	98m	593m	n/a	n/a
Shares outstanding at period end	598m	598m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2022	Q3 FY2022	A year earlier	Change on the year
Shareholders' equity	210	338	n/a	n/a
Redeemable equity	0.0	n/a	n/a	n/a
Debt	3,677	3,676	n/a	n/a
Operating lease liabilities	276	276	n/a	n/a
Other liabilities	8,091	6,811	n/a	n/a
Total liabilities and equity	12,254	11,100	n/a	n/a
Fixed assets	358	356	n/a	n/a
Goodwill	2,748	2,731	n/a	n/a
Intangible assets	384	412	n/a	n/a
Investments	2,568	2,169	n/a	n/a
Cash and equivalents	2,118	2,420	n/a	n/a
Receivables	2,142	1,241	n/a	n/a
Other assets	1,935	1,771	n/a	n/a
Total assets	12,254	11,100	n/a	n/a

Questions

What was Palo Alto Networks' revenue in Q4 FY2022?

Palo Alto Networks (PANW) reported revenue of $1.6 billion for Q4 FY2022, the quarter ended 31 July 2022, up 27.2% on the same quarter a year earlier.

How much did Palo Alto Networks earn in Q4 FY2022?

Net income for Q4 FY2022 was $3 million.

When did Palo Alto Networks report Q4 FY2022 results?

Palo Alto Networks filed its 10-K for the year that ended with the quarter on 6 September 2022; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025 †	Q3 FY2025 †	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	1,247	1,317	1,387	1,550	1,563	1,655	1,721	1,953	1,878	1,975	1,985	2,190	2,139	2,257	2,289	2,536	2,474	2,594	3,002	3,410
Cost of revenue	381	405	440	492	462	466	475	507	473	499	514	574	554	599	619	679	638	685	974	1,106
Gross profit	867	912	946	1,058	1,102	1,189	1,246	1,446	1,405	1,476	1,471	1,616	1,585	1,658	1,670	1,857	1,836	1,909	2,028	2,304
Gross margin	69%	69%	68%	68%	70%	72%	72%	74%	75%	75%	74%	74%	74%	73%	73%	73%	74%	74%	68%	68%
R&D	340	359	355	364	372	404	414	414	410	448	457	495	480	506	494	504	528	511	734	779
Operating income	-82.7	-73.9	-47.6	15.4	15.2	39.9	78.7	254	215	53.6	177	238	286	241	219	497	309	397	-183	172
Operating margin	-7%	-6%	-3%	1%	1%	2%	5%	13%	11%	3%	9%	11%	13%	11%	10%	20%	12%	15%	-6%	5%
Interest expense	6.9	6.8	6.8	6.9	6.8	6.9	7.8	5.7	2.9	2.8	2.3	0.3	1.2	0.9	0.7	0.2	0.0	0.0	0.0	0.0
Pre-tax income	-91.2	-80.8	-52.5	17.3	34.4	84.4	131	316	283	136	251	319	369	325	310	592	412	549	-156	-269
Tax rate	n/a	n/a	n/a	81%	42%	0%	18%	28%	31%	-1189%	-11%	-12%	5%	18%	16%	57%	19%	21%	n/a	n/a
Net income	-104	-93.5	-73.2	3.3	20.0	84.2	108	228	194	1,747	279	358	351	267	262	254	334	432	-177	-282
Net margin	-8%	-7%	-5%	0%	1%	5%	6%	12%	10%	88%	14%	16%	16%	12%	11%	10%	14%	17%	-6%	-8%
Diluted EPS	-$0.17	-$0.16	-$0.12	n/a	$0.03	$0.12	$0.15	$0.32	$0.28	$2.44	$0.40	$0.51	$0.49	$0.38	$0.37	$0.36	$0.47	$0.61	-$0.22	-$0.35
Operating cash flow	589	483	390	524	1,237	695	432	414	1,526	690	529	513	1,510	557	629	1,021	1,771	554	871	1,357
Capital expenditure	34.6	80.7	0.0	39.2	39.6	38.3	31.2	37.2	36.8	35.2	37.4	47.4	44.0	47.5	68.3	86.3	84.0	170	83.0	103
Free cash flow	554	402	390	484	1,197	656	401	377	1,489	655	492	465	1,466	509	560	934	1,687	384	788	1,254
Buybacks	0.0	550	0.0	342	22.7	250	0.0	0.0	66.7	0.0	500	0.0	0.0	0.0	0.0	0.0	n/a	n/a	n/a	n/a
Shares outstanding	197m	197m	598m	598m	605m	605m	611m	617m	627m	645m	647m	650m	655m	660m	666m	668m	692m	703m	813m	815m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A blank figure marked on a quarter is one the filings do not give on their own: the quarters as filed do not add to the year the company filed, or the year and its quarters stand on different share counts. Each quarter's page says which. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 July 2022, filed 6 September 2022: the filing.