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Palo Alto Networks cash flow, quarter by quarter

Latest: Q4 FY26 · from the cash-flow statements filed with the SEC

Free cash flow$1.3B in Q4 FY26

Operating cash flow$1.4B
Capital spending−$103M
Free cash flow+$1.3B

Analysis

In Q4 FY26, Palo Alto Networks generated $1.4B of operating cash flow and spent $103M on capital projects, leaving free cash flow of $1.3B. That is $320M more than in Q4 FY25 ($934M).

Operating cash flow was $1.4B against net income of −$282M. The largest differences: deferred revenue +$1.1B, receivables −$776M, stock-based pay +$460M.

Free cash flow

Palo Alto Networks: free cash flow by quarterPalo Alto Networks: free cash flow by quarter$1.5BQ1 FY25$509MQ2 FY25$560MQ3 FY25$934MQ4 FY25$1.7BQ1 FY26$384MQ2 FY26$788MQ3 FY26$1.3BQ4 FY26
Operating cash flow less capital spending.
Palo Alto Networks: operating cash flow against capital spendingPalo Alto Networks: operating cash flow against capital spendingOperating cash flowCapital spending$1.5B$44.0MQ1 FY25$557M$48.0MQ2 FY25$628M$68.0MQ3 FY25$1.0B$87.0MQ4 FY25$1.8B$84.0MQ1 FY26$554M$170MQ2 FY26$871M$83.0MQ3 FY26$1.4B$103MQ4 FY26
Latest (Q4 FY26): Operating cash flow $1.4B, Capital spending $103M.

Capital allocation, year by year

Palo Alto Networks: where the cash came from (up) and went (down), by fiscal yearPalo Alto Networks: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingAcquisitionsBuybacksFY22: Operating cash flow $2.0BFY22: Net borrowing −$600KFY22: Shares issued $137MFY22: Capital spending −$193MFY22: Acquisitions −$37.0MFY22: Buybacks −$892M$2.1BFY22FY23: Operating cash flow $2.8BFY23: Net borrowing −$1.7BFY23: Shares issued $259MFY23: Capital spending −$146MFY23: Acquisitions −$204MFY23: Buybacks −$273M$3.0BFY23FY24: Operating cash flow $3.3BFY24: Net borrowing −$1.0BFY24: Shares issued $283MFY24: Capital spending −$157MFY24: Acquisitions −$611MFY24: Buybacks −$567M$3.5BFY24FY25: Operating cash flow $3.7BFY25: Net borrowing −$966MFY25: Shares issued $371MFY25: Capital spending −$247MFY25: Acquisitions −$1.1B$4.1BFY25FY26: Operating cash flow $4.6BFY26: Net borrowing −$150MFY26: Shares issued $265MFY26: Capital spending −$440MFY26: Acquisitions −$4.7BFY26: Buybacks −$1.0B$4.8BFY26
Over these 5 years operating cash flow totalled $16.3B; the largest uses were acquisitions ($6.6B) and net borrowing ($3.8B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$3.1B
Debtnone
Net cash$3.1B

Palo Alto Networks funds itself: free cash flow was — over the last twelve months, with $3.1B of cash and investments and no debt on the balance sheet.

Where the cash came from and went

Palo Alto Networks: sources (+) and uses (−) of cash, Q4 FY26Palo Alto Networks: sources (+) and uses (−) of cash, Q4 FY26Operating cash flow$1.4BOther investing−$803MNet borrowing (+) / repaid (−)−$160MCash drawn (+) / kept (−)−$149MCapital spending−$103MAcquisitions−$100MOther financing−$37.0MExchange rates−$5.0MTaxes on employees’ shares−$1.0MShares issued$1.0M

From profit to cash

Palo Alto Networks: net income to operating cash flow, Q4 FY26Palo Alto Networks: net income to operating cash flow, Q4 FY26Net income−$282MDepreciation & amortization$341MStock-based pay$460MDeferred taxes−$57.0MReceivables−$776MPayables−$7.0MAccrued liabilities$84.0MEmployee-related liabilities$369MDeferred revenue$1.1BPrepaid and other assets−$92.0MOperating cash flow$1.4B
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q4 FY26$1.4B−$103M−$100M−$160M$1.0M−$149M$1.3B
Q3 FY26$871M−$83.0M−$2.0B—$126M$1.8B$788M
Q2 FY26$554M−$170M−$2.6B—$8.0M−$1.1B$384M
Q1 FY26$1.8B−$84.0M−$2.0M—$130M−$796M$1.7B
Q4 FY25$1.0B−$87.0M−$555M−$383M$10.0M$116M$934M
Q3 FY25$628M−$68.0M—−$151M$203M−$158M$560M
Q2 FY25$557M−$48.0M$1.0M−$113M$37.0M$56.0M$509M
Q1 FY25$1.5B−$44.0M−$500M−$319M$121M−$746M$1.5B

Palo Alto Networks: income statement and cash flow

Palo Alto Networks, Q4 FY26: revenue $3.4B (+34% year over year), operating margin 5.0%. The chart follows the revenue to costs, profit and cash.

Palo Alto Networks: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.