Does PALO ALTO NETWORKS, INC have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores PALO ALTO NETWORKS, INC (PANW) 56.5 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 11, balance-sheet safety 73, capital discipline 44.

Is PANW stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $9.58 per share versus a recent price of $358.68 — 3646% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has PANW's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 56.5 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

PALO ALTO NETWORKS, INC

PANW · Technology · $239.6B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power100

Median gross margin 72.2% over 10y, very stable.

Returns on capital11

Median ROIC -10.0%, above the 9% hurdle in 30% of years.

Balance-sheet safety73

Net debt/EBITDA n/ax, interest coverage 414x.

Capital discipline44

Owner earnings trend unclear, share count n/a.

Margin of safety

Above valueOn sale

3646% above value

Owner earnings (normalized): $575.6M
Est. intrinsic value / share: $9.58
Recent price: $358.68
Discount to value: 3646% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

16 years of fundamentals

The business, in plain English

PALO ALTO NETWORKS, INC booked $9.2B of revenue in FY2025 in the Technology sector and kept 73.4% of it as gross profit — a high-margin business by that measure. After every other cost, 12.3% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $118.6M (FY2011) to $9.2B (FY2025) — about 36.5% a year compounded over 14 years.

It earned 15.9% on invested capital in FY2025, with a median of −11.8% across 12 filed years. The Returns on Capital filter above scores it 11/100.

The balance sheet carried $2.0B of total debt in FY2023. Balance-Sheet Safety scores it 73/100.

The share count rose 3274.9% between FY2010 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 44/100.

Put together: Pricing Power is the strongest of the four filters (100/100) and Returns on Capital the weakest (11/100), which is how PANW lands at 57/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$9.2B FY2025

Gross marginRevenue kept after cost of goods73.4% FY2025

Return on invested capitalOperating profit on the capital employed15.9% FY2025

Owner earningsCash an owner could take out$1.2B FY2025

Gaps in a line mean that item isn’t in PANW’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale56.5 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — PANW has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#159 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#157ZIP ZIPRECRUITER, INC.56.7 out of 100, Shallow moatShallow moat
#158DOCU DOCUSIGN, INC.56.6 out of 100, Shallow moatShallow moat
#160VPG Vishay Precision Group, Inc.56.3 out of 100, Shallow moatShallow moat
#161RGP RESOURCES CONNECTION, INC.56.1 out of 100, Shallow moatShallow moat

Compare PANW with its nearest peers →All Technology companies on the Index →

Common questions about PANW

Does PALO ALTO NETWORKS, INC have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores PALO ALTO NETWORKS, INC (PANW) 56.5 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 11, balance-sheet safety 73, capital discipline 44.
Is PANW stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $9.58 per share versus a recent price of $358.68 — 3646% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has PANW's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 56.5 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell PANW. See the disclaimer.