Palo Alto NetworksXTER:5AP -0.71%68 FCF Margin % is 26.25% as of Apr. 2026, which is 31% below its 10-year median of 37.90. 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. Among 2,814 Software companies, Palo Alto Networks ranks better than 95.88% on this metric.
The historical rank and industry rank for Palo Alto Networks's FCF Margin % or its related term are showing as below:
XTER:5AP'
s FCF Margin % Range Over the Past 10 Years
Min: 24.1 Med: 37.9 Max: 42.52
Current: 35.83
During the past 13 years, the highest FCF Margin % of Palo Alto Networks was 42.52%. The lowest was 24.10%. And the median was 37.90%.
XTER:5AP's FCF Margin % is ranked better than 95.88% of 2814
companies
in the Software industry
Industry Median: 2.41
vs XTER:5AP: 35.83
Palo Alto Networks FCF Margin % Related Terms
Palo Alto Networks FCF Margin % Historical Data
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The historical data trend for Palo Alto Networks's FCF Margin % 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.
XTER:5AP vs CRWD, FTNT, SNPS: FCF Margin % Comparison
For the Software - Infrastructure subindustry, Palo Alto Networks's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, Palo Alto Networks's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Palo Alto Networks's FCF Margin % falls into.
* 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 (XTER:5AP) has a FCF Margin % of 26.25% as of Apr. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Palo Alto Networks and its competitors. This is 31% below median its historical median of 37.90. Over the past decade, Palo Alto Networks' FCF Margin % has ranged from 24.10 to 42.52. According to the industry distribution chart, Palo Alto Networks ranks #116 out of 2814 companies in the Software industry, placing it in the top 4.1%.
Is Palo Alto Networks' FCF Margin % too high?
Palo Alto Networks' current FCF Margin % of 26.25% is 31% below median its 10-year median of 37.90. Over the past 10 years, this metric has ranged from a low of 24.10 to a high of 42.52. The Software industry median FCF Margin % is 2.41. Palo Alto Networks' value of 26.25% is 989.2% above this industry median. Based on the distribution chart, Palo Alto Networks ranks #116 out of 2814 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' FCF Margin % compare to CRWD and FTNT?
According to the Software industry distribution chart, Palo Alto Networks ranks #116 out of 2814 companies for FCF Margin %. This places Palo Alto Networks in the top 4% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.41. Palo Alto Networks' value of 26.25% is 989.2% above this benchmark. Historically, Palo Alto Networks' own FCF Margin % has ranged from 24.10 to 42.52 over the past decade. While the company's 10-year median is 37.90 vs. the industry median of 2.41, Palo Alto Networks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palo Alto Networks's current FCF Margin % of 26.25% is 989.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Palo Alto Networks and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palo Alto Networks's current FCF Margin % is 26.25%, which is 31% below median its own 10-year median of 37.90. 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 FCF Margin % is 26.25%, which is 31% below median its 10-year median of 37.90 and 989.2% above the Software industry median of 2.41. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Palo Alto Networks (XTER:5AP), the current FCF Margin % is 26.25% 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:
FCF Margin %: 26.25% (31% below median its 10-year median of 37.90)
GF Value™: €188.12 vs. price of €252.75 (34.4% above fair value)
Industry Position: 989.2% above the Software median (#116 of 2814)
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 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
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