Palo Alto Networks

PANW closed FY25 with free cash flow of ~$3.47B and ended Q1 FY26 with cash and investments of roughly $10.2B (cash and equivalents ~$3.07B, short‑term investments ~$1.14B, long‑term investments ~$5.98B). Convertible notes due 2025 were fully settled; there is no material funded debt outstanding beyond leases and standard liabilities.

Adjusted FCF margin guides to 38–39% for FY26, and management targets 40%+ by FY28. This balance sheet and cash generation provide ample shock absorption for downturns or integration costs. Key caveat: large cash outlays and equity issuance tied to CyberArk and Chronosphere will reduce the net cash cushion.