PANW · 10-K · 2026A · Full report

Free Cash Flow and Liquidity

Palo Alto Networks Inc · 2026-09-10 · Importance 54 · Surprise 40 · Matches filing data

Cash, cash equivalents, and investments totaled $7.906 billion as of July 31, 2026, down from $8.459 billion a year earlier, while cash and cash equivalents increased to $2.514 billion from $2.269 billion. Net cash provided by operating activities increased 23% to $4.553 billion from $3.716 billion, and free cash flow increased 19% to $4.113 billion from $3.469 billion. Purchases of property, equipment, and other assets were approximately $440 million in fiscal 2026, based on operating cash flow less free cash flow. Net cash used in investing activities was $3.104 billion and net cash used in financing activities was $1.202 billion, reflecting substantial acquisition and capital-allocation activity.

Key facts

• Palo Alto Networks believes its net cash provided by operating activities, existing cash, cash equivalents and investments, and access to financing, including proceeds from settlement or termination of outstanding Capped Calls, will be sufficient to meet anticipated cash needs should holders convert their 2030 Notes during the fiscal quarter ending October 31, 2026 or hold until maturity on June 15, 2030. source
• Net cash used in financing activities during fiscal 2026 was $1.2 billion, an increase of $423 million compared to fiscal 2025. source
• As of July 31, 2026, cash and cash equivalents were $2,514 million and investments were $5,392 million, totaling $7,906 million of cash, cash equivalents, and investments. source
• As of July 31, 2026, Palo Alto Networks had working capital deficit of $(1,280) million. source
• Free cash flow (non-GAAP) for fiscal 2026 was $4,113 million. source
• We believe that our cash flow from operations with existing cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next 12 months and thereafter for the foreseeable future. source
• We may also choose to seek additional equity or debt financing and, if we are unable to raise additional capital when desired, our business, financial condition, and operating results may be adversely affected. source

Impact estimates