Palo Alto Networks (PANW) Margins & Profitability 2020-2026

Gross, EBITDA, operating, and net margin trends

Margins

Profit margins across the income statement

Gross Margin: 67.6%
EBITDA Margin: 5.0%
Op. Margin: -6.1%
Net Margin: -5.9%

Op. margin of -6.1% is down 15.7% YoY — costs are rising relative to revenue. Net margin at -5.9% and gross margin of 67.6% — earnings take a bigger bite when COGS stays lean..

Gross Margin (%)

Revenue left after direct cost of goods sold

EBITDA Margin (%)

Operating profitability independent of capital structure

Operating & Net Margins (%)

How much of each dollar becomes profit