Palo Alto Networks, Inc. stock research
FY2023 Q2
Palo Alto Networks (PANW) Gross Margin — Quarter Ended Jan 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, and gross margin improved as cost of revenue grew at a slower rate than revenue.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, and gross margin improved as cost of revenue grew at a slower rate than revenue.
- Revenue grew at a faster pace than cost of revenue, leading to an expansion in gross margin.
- Sequentially, gross margin was higher than the preceding quarter. Year-over-year, gross margin was also higher compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$466.2M
Quarter-over-quarter change
n/a
Year-over-year change
+2.6 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $1.7B | $1.2B | $466.2M | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 31, 2022
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew at a faster pace than cost of revenue, leading to an expansion in gross margin.
Sequentially, gross margin was higher than the preceding quarter. Year-over-year, gross margin was also higher compared to the same quarter one year earlier.
Monitor the relationship between cost of revenue and revenue in future quarters to evaluate margin sustainability.