PANWNEUTRAL

PANW Gross Margin Analysis

67.6%

Updated 225h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services; a higher number generally indicates stronger pricing power or cost efficiency.

Sector Performance

80th percentile

PANW

67.6%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

73.6%(Apr 2026)

↓ Declining

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Deep Analysis

PANW’s current gross margin of 67.6% substantially exceeds the sector median of 44.6%, placing it in the 83rd percentile among peers. Year-over-year and quarter-over-quarter changes are both listed as N/A, and the historical data shows only a single value, so no trend direction can be assessed. The combination of a high margin relative to peers with an unknown trend suggests the company enjoys a strong competitive position, but the lack of trend information introduces uncertainty about whether that level is sustainable or deteriorating. This metric supports the overall NEUTRAL verdict: the strong margin level is a positive factor, but without trend data it cannot justify a bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about PANW?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are PANW's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.