Palo Alto Networks, Inc. stock research
FY2026 Q3
Palo Alto Networks (PANW) Gross Margin & Quarterly History
Explore Palo Alto Networks, Inc. (PANW) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Apr 30, 2026 · FY2026 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a faster pace, causing gross margin to weaken. The relationship among the metrics shows that the growth in cost of revenue outpaced revenue growth, compressing gross profit as a share of revenue.
- The strongest observable margin driver is the increase in cost of revenue relative to revenue, which directly reduced gross margin. This is evident from the sequential and year-over-year comparisons where cost of revenue grew faster than revenue.
- Compared to the immediately preceding quarter, gross margin was lower, as revenue and gross profit increased but cost of revenue rose more sharply. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit higher but cost of revenue growing at a faster rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.6%
Gross profit
$2.0B
Revenue
$3.0B
Cost of revenue
$974.0M
Quarter-over-quarter change
-6.0 pts
Year-over-year change
-5.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 31, 2025 | $2.5B | $1.9B | $679.6M | 73.2% |
| Oct 31, 2025 | $2.5B | $1.8B | $638.0M | 74.2% |
| Jan 31, 2026 | $2.6B | $1.9B | $685.0M | 73.6% |
| Apr 30, 2026 | $3.0B | $2.0B | $974.0M | 67.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
-6.0 pts
Year-over-year change
Apr 30, 2025
-5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue relative to revenue, which directly reduced gross margin. This is evident from the sequential and year-over-year comparisons where cost of revenue grew faster than revenue.
Compared to the immediately preceding quarter, gross margin was lower, as revenue and gross profit increased but cost of revenue rose more sharply. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit higher but cost of revenue growing at a faster rate.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether gross margin stabilizes or continues to weaken.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Palo Alto Networks, Inc. (PANW) | 67.6% |