Palo Alto Networks, Inc. stock research
FY2025 Q4
Palo Alto Networks (PANW) Gross Margin — Quarter Ended Jul 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year ago.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue from the prior quarter, supporting the gross margin improvement.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.2%
Gross profit
$1.9B
Revenue
$2.5B
Cost of revenue
$679.6M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Oct 31, 2024 | $2.1B | $1.6B | $554.0M | 74.1% |
| Jan 31, 2025 | $2.3B | $1.7B | $599.0M | 73.5% |
| Apr 30, 2025 | $2.3B | $1.7B | $619.0M | 73.0% |
| Jul 31, 2025 | $2.5B | $1.9B | $679.6M | 73.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
+0.2 pts
Year-over-year change
Jul 31, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue from the prior quarter, supporting the gross margin improvement.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may affect future gross margin stability.