Quick Verdict
ZakatInvest classifies Palo Alto Networks (PANW) as doubtful. Network, cloud, security-operations, observability and identity-security services can help protect people, property and essential digital services from cyberattack. Its April 2026 debt, liquidity and receivables ratios pass the examined total-assets limits. The filing does not separately disclose gross interest income or revenue by customer, government use, product, subscription, support contract or end use, so a complete screen cannot be reproduced.
This does not treat cybersecurity as prohibited or claim that all revenue is permissible. It preserves the beneficial defensive function alongside financial, deployment and disclosure limits.
Business and Current Results
Palo Alto Networks offers network, cloud, security-operations, observability, identity-security, threat-intelligence and incident-response services. For the quarter ended April 30, 2026, it reported $3.002 billion in revenue: $594 million of product revenue, $1.632 billion of subscription revenue and $776 million of support revenue. CyberArk and Chronosphere contributed $388 million of quarterly revenue after acquisition.
The services can prevent fraud, intrusion, ransomware, data loss and business disruption. Their ethical analysis remains deployment-specific: public reporting does not identify customer purpose, government use, surveillance context, contract terms, data handling or end-user impact.
Current Financial Screening
The calculation below uses the latest available Form 10-Q and links to the official filing at the SEC. Balance-sheet inputs are dated April 30, 2026, and revenue uses the matching quarter.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-13.
1,352 / 46,266
6,992 / 46,266
6,586 / 46,266
- Financial
- Incomplete
- Overall
- Incomplete
Debt is 2.92%, identifiable liquidity is 15.11%, and broad receivables plus cash is 14.24%, all below the examined limits. Gross interest income is not separately disclosed, so the financial income screen remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt, cash plus identifiable interest-bearing securities and broad receivables plus cash are below the examined total-assets limits. This is not a claim about index membership; business activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Identifiable conventional cash and interest-bearing instruments and debt are below 33% of total assets. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; screened business revenue is unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Palo Alto Networks provides network, cloud, security-operations, observability, identity-security, threat-intelligence and incident-response products and services. Preventing unauthorized access, fraud, cyberattack and data loss can serve legitimate protection of people, property, communications and essential services. The same general-purpose tools can be deployed across varied customers and uses, so a beneficial core function does not eliminate customer-, contract- and outcome-specific review.
Limitation: The filing disaggregates product, subscription and support revenue, but not revenue by government client, security operation, surveillance-related use, customer, geography, end use, data practice or prohibited category. No exact screened operating-revenue percentage can be reproduced from consolidated disclosure.
Purification
The filing does not separately report gross interest income; its other-income line also contains currency and convertible-note/capped-call valuation effects. Screened operating revenue is unavailable, so no fixed purification percentage is prescribed.
Inputs, assumptions and primary sources
- Interest-bearing debt is the reported 160 short-term plus 1,192 long-term convertible senior notes, acquired with CyberArk. The notes had an aggregate principal amount of 1.25 billion and a 0.0% coupon; carrying fair value is used consistently with the balance sheet.
- Cash and equivalents use 2,364. Identifiable interest-bearing securities use the reported 747 short-term and 3,881 long-term investments. The portfolio includes commercial paper, corporate debt, government and agency and asset-backed securities.
- Receivables use 2,852 net accounts receivable plus 591 short-term and 779 long-term financing receivables, a deliberately broad customer-financing input.
- Quarterly revenue is 3,002. Other income, net is 27 but combines interest income, foreign-currency effects and convertible-note and capped-call fair-value changes, so gross interest income is not inferred.
- The filing reports only product, subscription and support revenue and does not classify revenue by a Sharia-screened product, customer, government use, end use, contract or data practice.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
What the Numbers Show
Convertible senior notes are $1.352 billion: $160 million short term plus $1.192 billion long term. That is 2.92% of $46.266 billion in assets. Cash plus short- and long-term investments is $6.992 billion, or 15.11% of assets. The investment portfolio includes commercial paper, corporate debt, government and agency securities and asset-backed securities.
Broad receivables plus cash are 14.24% of assets. The numerator deliberately includes $2.852 billion in accounts receivable and $1.370 billion in short- and long-term financing receivables, as well as cash. The filing's $27 million other-income line combines interest income, currency effects and convertible-note/capped-call valuation changes, so it cannot honestly be converted into gross interest income or a fixed purification rate.
Market-cap methods use historical average market value. ZakatInvest does not replace that denominator with a spot price, so those methods remain not calculated.
Government Use, Privacy and Automated Security
The original government-client concern remains important. Security tools can be used by private organizations, public bodies, defense, intelligence and law-enforcement users. A responsible screen should examine the actual user, lawful authority, necessity, proportionality, safeguards, remedies and human-rights impact rather than giving every deployment the same label.
Identity, cloud and security-operations products process sensitive telemetry, credentials and activity data. Privacy, consent, retention, access control, breach response, false positives, automated decisions, bias, explainability and misuse all require outcome-based evidence. AI-supported detection and response can reduce harm, but automation does not eliminate accountability.
Compensation, Acquisitions and Financial Structures
The prior page's stock-based-compensation concern is retained. Reported Q3 share-based-compensation-related charges were $517 million. The company has also expanded through CyberArk, Chronosphere and other acquisitions, creating integration, data-governance, workforce and customer-transition questions that should be assessed as evidence develops.
Convertible notes, capped calls, cash investments, foreign-currency forwards, customer financing and contingent consideration have different economic and contractual features. They should be assessed under a chosen methodology rather than being ignored because the operating business is defensive technology.
Bottom Line
PANW remains doubtful in ZakatInvest's canonical classification. The core cybersecurity function has generally permissible and potentially beneficial elements, and known debt, liquidity and receivables ratios pass. The income line and screened operating-revenue numerator are incomplete, while customer use, government deployments, privacy, AI, acquisition and data-governance outcomes need continuing review. This is a screening classification, not a fatwa or investment recommendation; apply your chosen methodology with a qualified Sharia adviser for a binding ruling.
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