PANWNEUTRAL

PANW Return on Equity (ROE) Analysis

4.8%

Updated 225h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—a 4.8% ROE means PANW earned $0.048 for every $1 of equity invested.

Sector Performance

23th percentile

PANW

4.8%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

14.5%(Apr 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity—a 4.8% ROE means PANW earned $0.048 for every $1 of equity invested.

This sits well below the sector median of 13.8%, placing PANW in the 21st percentile among peers, indicating weaker profitability relative to its industry. No year-over-year or quarter-over-quarter changes are available, and there is no trend data for the last eight quarters, so no direction can be assessed. The combination of a low ROE level with an absent trend makes it impossible to judge whether performance is improving or worsening, which adds uncertainty rather than a clear risk or opportunity signal. This low relative ROE directly contradicts a bullish outlook, but the lack of trend data tempers a bearish conclusion, aligning with the overall NEUTRAL verdict that finds no decisive evidence for a strong buy or sell.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PANW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are PANW's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.