Palo Alto Networks (XTER:5AP) EBIT: €1,194 Mil (TTM As of Apr. 2026)


XTER:5AP Palo Alto Networks Inc XTER:5AP
68 GF Score
Price €252.75
GF Value €188.12
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Palo Alto Networks EBIT?

Palo Alto Networks XTER:5AP -0.71% 68 EBIT is €1,194 Mil as of Apr. 2026. GuruFocus rates XTER:5AP with a GF Score™ of 68/100 and a GF Value™ of €188.12 (Significantly Overvalued). The stock has 7 warning signs investors should review.

Palo Alto Networks's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2026 was €-133 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was €1,194 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Palo Alto Networks's annualized ROC % for the quarter that ended in Apr. 2026 was -2.10%. Palo Alto Networks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was -61.39%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Palo Alto Networks's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 0.59%.


Palo Alto Networks  (XTER:5AP) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Palo Alto Networks's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=-625.86 * ( 1 - 0% )/( (19930.42 + 39762.63)/ 2 )
=-625.86/29846.525
=-2.10 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21257.129 - 1020.349 - ( 3860.136 - max(0, 6815.659 - 7122.019+3860.136))
=19930.42

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=39557.43 - 900.315 - ( 2659.905 - max(0, 7700.13 - 6594.615+2659.905))
=39762.63

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Palo Alto Networks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-533.52/( ( (725.903 + max(-4125.648, 0)) + (1012.32 + max(-4133.925, 0)) )/ 2 )
=-533.52/( ( 725.903 + 1012.32 )/ 2 )
=-533.52/869.1115
=-61.39 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1800.716 + 0 + 889.295) - (1020.349 + 5317.048 + 478.262)
=-4125.648

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2438.46 + 0 + 990.945) - (900.315 + 6081.615 + 581.4)
=-4133.925

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Palo Alto Networks's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2026 )
=1193.871/203401.785
=0.59 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Palo Alto Networks EBIT Related Terms


Palo Alto Networks EBIT Historical Data

* Premium members only.

The historical data trend for Palo Alto Networks's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Palo Alto Networks EBIT Chart

Palo Alto Networks Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -259.72 -183.82 530.47 915.64 1,369.14

Palo Alto Networks Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 277.68 506.14 353.91 467.20 -133.38

XTER:5AP vs CRWD, FTNT, SNPS: EBIT Comparison

For the Software - Infrastructure subindustry, Palo Alto Networks's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Palo Alto Networks EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Palo Alto Networks's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Palo Alto Networks's EV-to-EBIT falls into.


XTER:5AP
68GF Score
Palo Alto Networks Inc XTER:5AP
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Palo Alto Networks EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,194 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €1,194 Mil mean?
Palo Alto Networks (XTER:5AP) has a EBIT of €1,194 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Palo Alto Networks.
Is Palo Alto Networks' EBIT too high?
Palo Alto Networks' current EBIT is €1,194 Mil. Overall, Palo Alto Networks has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palo Alto Networks' EBIT compare to CRWD and FTNT?
Palo Alto Networks' EBIT of €1,194 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Palo Alto Networks. Palo Alto Networks's current EBIT is €1,194 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palo Alto Networks stock overvalued right now?
Based on GuruFocus' analysis, Palo Alto Networks (XTER:5AP) is currently considered Significantly Overvalued. The stock's GF Value™ is €188.12, compared to a current price of €252.75 — trading 34.4% above its estimated fair value. The current EBIT is €1,194 Mil. Palo Alto Networks' overall GF Score™ is 68/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Palo Alto Networks (XTER:5AP), the current EBIT is €1,194 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Palo Alto Networks (XTER:5AP) Overvalued in 2026?

Based on GuruFocus' analysis, Palo Alto Networks stock appears to be overvalued. The current stock price of €252.75 is trading 34.4% above its estimated GF Value™ of €188.12. GuruFocus considers Palo Alto Networks to be Significantly Overvalued.

Key valuation signals for XTER:5AP:

  • EBIT: €1,194 Mil
  • GF Value™: €188.12 vs. price of €252.75 (34.4% above fair value)
  • GF Score™: 68/100 with 7 warning signs

No single metric tells the full story. See the XTER:5AP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Palo Alto Networks Business Description

Address 3000 Tannery Way, Santa Clara, CA, USA, 95054
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three-fourths of the Global 2000.
68GF Score

Get the complete analysis for XTER:5AP

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€252.75
Price
€188.12
GF Value