Palo Alto Networks, Inc. stock research
FY2026 Q2
Palo Alto Networks (PANW) Gross Margin — Quarter Ended Jan 31, 2026
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin remained relatively stable, reflecting the relationship among these metrics.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q2
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin remained relatively stable, reflecting the relationship among these metrics.
- The gross margin was stable as revenue and cost of revenue moved in the same direction, with the change in cost of revenue being proportionally similar to the change in revenue.
- Compared to the prior quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.6%
Gross profit
$1.9B
Revenue
$2.6B
Cost of revenue
$685.0M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Apr 30, 2025 | $2.3B | $1.7B | $619.0M | 73.0% |
| 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% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
-0.6 pts
Year-over-year change
Jan 31, 2025
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was stable as revenue and cost of revenue moved in the same direction, with the change in cost of revenue being proportionally similar to the change in revenue.
Compared to the prior quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin.