Palo Alto Networks, Inc. stock research
FY2023 Q4
Palo Alto Networks (PANW) Gross Margin — Quarter Ended Jul 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved, reflecting a favorable relationship between revenue and cost of revenue.
- The improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue, compared to both the preceding quarter and the year-ago period.
- Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.1%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$506.8M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+5.8 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% |
| Apr 30, 2023 | $1.7B | $1.2B | $474.8M | 72.4% |
| Jul 31, 2023 | $2.0B | $1.4B | $506.8M | 74.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
+1.6 pts
Year-over-year change
Jul 31, 2022
+5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growth outpacing the increase in cost of revenue, compared to both the preceding quarter and the year-ago period.
Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters.