Is Palo Alto Networks (PANW) Halal?
Shariah Screening — 5 Standards
Based on financial data from July 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 0.3% / 30% | 2.2% / 30% | 2.7% / 30% | 3.94% / 5% | ✓ HALAL |
| DJIM | 0.3% / 33% | 2.2% / 33% | 2.7% / 33% | 3.94% / 5% | ✓ HALAL |
| MSCI | 1.4% / 33% | 12.3% / 33% | 15.6% / 33% | 3.94% / 5% | ✓ HALAL |
| S&P | 0.3% / 33% | 2.2% / 33% | 2.7% / 33% | 3.94% / 5% | ✓ HALAL |
| FTSE | 1.4% / 33% | 12.3% / 33% | 15.6% / 50% | 3.94% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 73.5% | |
| Operating Margin | 15.5% | |
| Net Margin | 13.0% | |
| Return on Equity (ROE) | 16.3% | |
| Return on Assets (ROA) | 3.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.7B |
| Free Cash Flow | $3.5B |
| Total Debt | $338M |
| Debt-to-Equity | 4.9 |
| Current Ratio | 1.0 |
| Total Assets | $23.6B |
Price & Trading
| Last Close | $156.36 |
| 50-Day MA | $164.83 |
| 200-Day MA | $188.50 |
| Avg Volume | 10.1M |
| Beta | 0.8 |
|
52-Week Range
$139.57
| |
About Palo Alto Networks (PANW)
Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers Prisma Access, a secure access service edge solution; Strata Cloud Manager, a network security management solution; and Prisma AIRS to protect customers' entire AI ecosystem. It provides a comprehensive cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments. It provides security operation solutions through the Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR to prevent, detect, and respond to cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name. It provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline; and threat intelligence, data loss prevention, services to resolve network disruptions, and sensitive data protection. It offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
Purification Calculator
As a halal stock with 3.94% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Palo Alto Networks (PANW) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Palo Alto Networks is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Palo Alto Networks's debt ratio?
Palo Alto Networks's debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.4%.
Does Palo Alto Networks require dividend purification?
Yes, Palo Alto Networks has an impermissible income ratio of 3.94%, which means 3.94% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Palo Alto Networks's key financial metrics?
Palo Alto Networks has a market capitalization of $120.0B, trailing P/E ratio of 82.1, and revenue of $9.2B. The company maintains a gross margin of 73.5% and a net margin of 13.0%. Return on equity stands at 16.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.