Palo Alto Networks (PANW) FY2023 results: revenue $6.9 billion, up 25.3% on the year

Palo Alto Networks Inc. (PANW) reported revenue of $6.9 billion for fiscal 2023, the year ended 31 July 2023, up 25.3% on the year before. Net income was $440 million, and diluted earnings per share $0.64. The figures are the company's own, from the 10-K it filed with the SEC on 1 September 2023.

Revenue

$6.9 billion

+25.3% on the year

FY2016FY2023

Operating margin

5.6%

-3.4% a year earlier

FY2016FY2023

Net income

$440 million

FY2016FY2023

Diluted EPS

$0.64

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	6,893	5,502	4,256	+25.3%
Cost of revenue	1,910	1,719	1,275	+11.1%
Gross profit	4,983	3,783	2,981	+31.7%
Gross margin	72.3%	68.8%	70.0%
Research and development	1,604	1,418	1,140	+13.1%
Operating income	387	-189	-304
Operating margin	5.6%	-3.4%	-7.1%
Interest expense	27.2	27.4	163	-0.7%
Pre-tax income	566	-207	-465
Income tax	127	59.8	33.9	+111.7%
Effective tax rate	22.4%	n/a	n/a
Net income	440	-267	-499
Net margin	6.4%	-4.9%	-11.7%
Diluted EPS	$0.64	-$0.45	-$0.86

$ million except per share.

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

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	2,778	1,985	1,503	+39.9%
Capital expenditure	146	193	116	-24.1%
Free cash flow	2,631	1,792	1,387	+46.8%
Free cash flow margin	38.2%	32.6%	32.6%
Cash from investing	-2,034	-933	-1,481
Cash from financing	-1,726	-807	-1,104
Depreciation and amortisation	282	283	260	-0.1%
Share-based compensation	1,074	1,011	894	+6.3%
Buybacks	273	892	1,178	-69.4%
Diluted shares, weighted	685m	591m	578m	+15.8%
Shares outstanding at period end	617m	598m	584m	+3.2%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,748	210	634	+732.6%
Redeemable equity	n/a	0.0	129
Debt	1,992	3,677	3,226	-45.8%
Operating lease liabilities	279	276	313	+1.1%
Other liabilities	10,482	8,091	5,939	+29.6%
Total liabilities and equity	14,501	12,254	10,242	+18.3%
Fixed assets	354	358	318	-0.9%
Goodwill	2,927	2,748	2,710	+6.5%
Intangible assets	315	384	499	-18.0%
Investments	4,303	2,568	1,915	+67.6%
Cash and equivalents	1,135	2,118	1,874	-46.4%
Receivables	2,463	2,142	1,240	+15.0%
Other assets	3,003	1,935	1,685	+55.2%
Total assets	14,501	12,254	10,242	+18.3%

10-K for the year ended 31 July 2023, filed 1 September 2023: the filing.