Palo Alto Networks (PANW) 10-K Red Flags
Risk signals extracted deterministically from Palo Alto Networks’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (17)
- Gross margin compression: Gross margin contracted +46.1%pp (from 407.6% to 361.5%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 4 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 27 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 3 filing(s).
- NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 7 filing(s).
- Operating cash flow exceeds net income: OCF is 6.32x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 20 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 4 new risk-language term(s) detected in filing text: Going concern doubt, Substantial doubt about ability to continue, Restatement of financial statements, Impairment charge.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Market cap $283.67B at $348.06 per share.
- Trailing P/E 543.84, P/S 205.78, P/B 10.25.
- Composite risk: Elevated.
- Leverage debt/equity 0.07 (low).
- Gross margin compression: Gross margin contracted +46.1%pp (from 407.6% to 361.5%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 4 filing(s).
Filings & ownership
- Latest quarterly report (10-Q) filed Jun 3, 2026.
- 12 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 5 sell transactions — net selling $5.6M.
- ~10,000+ recent 13F-HR filings reference Palo Alto Networks; broad institutional reporting.
- Recent filers include MAPLELANE CAPITAL, LLC, Axiom Investment Management LLC, MAPLELANE CAPITAL, LLC.
- 20 recent 13G passive institutional ownership notices.
Full PANW analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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