Palo Alto Networks, Inc (PANW) FY2026 Annual Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2025-08-01 to 2026-07-31

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Palo Alto Networks, Inc cash flow reconciliation, Aug 1, 2025 through Jul 31, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Net income → Net cash from operating activities: $307,000,000.00Share-based compensation for equity-based awards → Operating adjustments reconciliation: $1,774,000,000.00Deferred revenue → Operating adjustments reconciliation: $1,202,000,000.00Depreciation and amortization → Operating adjustments reconciliation: $855,000,000.00Amortization of deferred contract costs → Operating adjustments reconciliation: $590,000,000.00Change in fair value of convertible senior notes and capped calls → Operating adjustments reconciliation: $562,000,000.00Accrued compensation → Operating adjustments reconciliation: $327,000,000.00Financing receivables, net → Operating adjustments reconciliation: $181,000,000.00Accrued and other liabilities → Operating adjustments reconciliation: $95,000,000.00Reduction of operating lease right-of-use assets → Operating adjustments reconciliation: $75,000,000.00Accounts payable → Operating adjustments reconciliation: $43,000,000.00Unrealized foreign currency exchange (gains) losses, net → Operating adjustments reconciliation: $1,000,000.00Operating adjustments reconciliation → Net cash from operating activities: $4,246,000,000.00Operating adjustments reconciliation → Deferred contract costs: $795,000,000.00Operating adjustments reconciliation → Accounts receivable, net: $335,000,000.00Operating adjustments reconciliation → Prepaid expenses and other assets: $139,000,000.00Operating adjustments reconciliation → Change in fair value of contingent consideration liability: $117,000,000.00Operating adjustments reconciliation → Amortization of investment premiums, net of accretion of purchase discounts: $54,000,000.00Operating adjustments reconciliation → Deferred income taxes: $19,000,000.00Proceeds from sales of investments → investing reconciliation: $3,489,000,000.00Proceeds from maturities of investments → investing reconciliation: $2,204,000,000.00investing reconciliation → Business acquisitions, net of cash and restricted cash acquired: $4,663,000,000.00investing reconciliation → Purchases of investments: $3,694,000,000.00investing reconciliation → Purchases of property, equipment, and other assets: $440,000,000.00Net cash used in financing activities → financing reconciliation: $1,202,000,000.00Proceeds from sales of shares through employee equity incentive plans → financing reconciliation: $265,000,000.00Proceeds from capped calls related to convertible senior notes → financing reconciliation: $10,000,000.00financing reconciliation → Repurchases of common stock: $1,000,000,000.00financing reconciliation → Payments of contingent consideration liability: $191,000,000.00financing reconciliation → Repayments and settlement of conversions of convertible senior notes: $160,000,000.00financing reconciliation → Payments for taxes related to net share settlement of equity awards: $126,000,000.00Net cash used in investing activities → investing reconciliation: $3,104,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $2,279,000,000.00Net cash from operating activities → Cash sources and uses: $4,553,000,000.00Cash sources and uses → Exchange-rate effect: $3,000,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $2,523,000,000.00Cash sources and uses → Net cash used in investing activities: $3,104,000,000.00Cash sources and uses → Net cash used in financing activities: $1,202,000,000.00Net income: $307,000,000.00Net income+$307.00 MShare-based compensation for equity-based awards: $1,774,000,000.00Stock-based compensation+$1.77 BDeferred income taxes: -$19,000,000.00Deferred taxes & credits−$19.00 MDepreciation and amortization: $855,000,000.00Depreciation & amortization+$855.00 MAmortization of deferred contract costs: $590,000,000.00Contract cost amortization+$590.00 MAmortization of debt issuance costs: $0.00Change in fair value of convertible senior notes and capped calls: $562,000,000.00Convertible notes & capped call FV+$562.00 MChange in fair value of contingent consideration liability: -$117,000,000.00Contingent consideration change−$117.00 MReduction of operating lease right-of-use assets: $75,000,000.00Operating lease amortization+$75.00 MAmortization of investment premiums, net of accretion of purchase discounts: -$54,000,000.00Investment discount & premium−$54.00 MUnrealized foreign currency exchange (gains) losses, net: $1,000,000.00Unrealized FX gain & loss+$1.00 MAccounts receivable, net: -$335,000,000.00Accounts receivable−$335.00 MFinancing receivables, net: $181,000,000.00Finance receivables, net+$181.00 MDeferred contract costs: -$795,000,000.00Deferred contract costs−$795.00 MPrepaid expenses and other assets: -$139,000,000.00Prepaid & other assets−$139.00 MAccounts payable: $43,000,000.00Accounts payable+$43.00 MAccrued compensation: $327,000,000.00Accrued compensation+$327.00 MAccrued and other liabilities: $95,000,000.00Accrued & other liabilities+$95.00 MDeferred revenue: $1,202,000,000.00Deferred revenue+$1.20 BNet cash from operating activities: $4,553,000,000.00Operating cash+$4.55 BOperating adjustments reconciliation: $5,705,000,000.00Repayments and settlement of conversions of convertible senior notes: -$160,000,000.00Convertible debt repaid−$160.00 MProceeds from capped calls related to convertible senior notes: $10,000,000.00Convertible debt issued+$10.00 MRepurchases of common stock: -$1,000,000,000.00Common stock repurchases−$1.00 BProceeds from sales of shares through employee equity incentive plans: $265,000,000.00Employee stock plans & options+$265.00 MPayments for taxes related to net share settlement of equity awards: -$126,000,000.00Stock-award tax withholding−$126.00 MPayments of contingent consideration liability: -$191,000,000.00Contingent consideration paid−$191.00 MNet cash used in financing activities: -$1,202,000,000.00. Cash required to fund net payments.Financing cash−$1.20 Bfinancing reconciliation: $1,477,000,000.00Purchases of investments: -$3,694,000,000.00Investment purchases−$3.69 BProceeds from sales of investments: $3,489,000,000.00AFS securities sales+$3.49 BProceeds from maturities of investments: $2,204,000,000.00AFS securities maturities+$2.20 BBusiness acquisitions, net of cash and restricted cash acquired: -$4,663,000,000.00Acquisitions, net of cash−$4.66 BPurchases of property, equipment, and other assets: -$440,000,000.00Capital expenditures−$440.00 MNet cash used in investing activities: -$3,104,000,000.00. Cash required to fund net payments.Investing cash−$3.10 Binvesting reconciliation: $8,797,000,000.00Cash sources and uses: $6,832,000,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $2,279,000,000.00Beginning cash$2.28 BEnding cash: Cash, cash equivalents, and restricted cash: $2,523,000,000.00Ending cash$2.52 BExchange-rate effect: -$3,000,000.00FX effect−$3.00 MCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsFree cash flow$4.11 BOperating cash − cash spent on productive assetsCash flow / Net income14.83×Operating cash flow ÷ net incomeNet cash change+$244.00 MEnding cash − beginning cash
Chart details

Palo Alto Networks, Inc cash flow reconciliation, Aug 1, 2025 through Jul 31, 2026

Cash flows for Aug 1, 2025 through Jul 31, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Jul 31, 2025. Ending cash: Jul 31, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Jul 31, 2025
2,279,000,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
4,553,000,000 US dollars. Net cash provided.
Net income
307,000,000 US dollars
Share-based compensation for equity-based awards
1,774,000,000 US dollars
Deferred income taxes
negative 19,000,000 US dollars
Depreciation and amortization
855,000,000 US dollars
Amortization of deferred contract costs
590,000,000 US dollars
Amortization of debt issuance costs
0 US dollars
Change in fair value of convertible senior notes and capped calls
562,000,000 US dollars
Change in fair value of contingent consideration liability
negative 117,000,000 US dollars
Reduction of operating lease right-of-use assets
75,000,000 US dollars
Amortization of investment premiums, net of accretion of purchase discounts
negative 54,000,000 US dollars
Unrealized foreign currency exchange (gains) losses, net
1,000,000 US dollars
Accounts receivable, net
negative 335,000,000 US dollars
Financing receivables, net
181,000,000 US dollars
Deferred contract costs
negative 795,000,000 US dollars
Prepaid expenses and other assets
negative 139,000,000 US dollars
Accounts payable
43,000,000 US dollars
Accrued compensation
327,000,000 US dollars
Accrued and other liabilities
95,000,000 US dollars
Deferred revenue
1,202,000,000 US dollars
Investing activities
negative 3,104,000,000 US dollars. Net cash used.
Purchases of investments
negative 3,694,000,000 US dollars
Proceeds from sales of investments
3,489,000,000 US dollars
Proceeds from maturities of investments
2,204,000,000 US dollars
Business acquisitions, net of cash and restricted cash acquired
negative 4,663,000,000 US dollars
Purchases of property, equipment, and other assets
negative 440,000,000 US dollars
Financing activities
negative 1,202,000,000 US dollars. Net cash used.
Repayments and settlement of conversions of convertible senior notes
negative 160,000,000 US dollars
Proceeds from capped calls related to convertible senior notes
10,000,000 US dollars
Repurchases of common stock
negative 1,000,000,000 US dollars
Proceeds from sales of shares through employee equity incentive plans
265,000,000 US dollars
Payments for taxes related to net share settlement of equity awards
negative 126,000,000 US dollars
Payments of contingent consideration liability
negative 191,000,000 US dollars
Operating adjustment reconciliation
5,705,000,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
1,477,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
8,797,000,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
negative 3,000,000 US dollars
Ending cash on Jul 31, 2026
2,523,000,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
6,832,000,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
244,000,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
14.83×. Operating cash flow divided by reconciliation net income for the same period. Black from 0.90× through 1.10×; green above 1.10×; red below 0.90×. Color uses the unrounded ratio.
Operating cash flow
4,553,000,000 US dollars. Operating cash flow used in the free cash flow calculation.
cash spent on productive assets
440,000,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
4,113,000,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net income enters operating cash directly in the reconciliation. The adjustment junction contributes the remaining $4.25B after reconciling the other positive and negative adjustments. These connections depict an accounting reconciliation, not traced cash receipts.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash spent on productive assets equals free cash flow: 4,553,000,000 US dollars minus 440,000,000 US dollars equals 4,113,000,000 US dollars.
Palo Alto Networks, Inc (PANW) FY2026 Annual Statement of Cash Flows Sankey chart
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