NASDAQ Shariah screener · October 2026
Is Palo Alto Networks, Inc. (PANW) Halal?
Palo Alto Networks, Inc. · NASDAQ: PANW · Technology
The short answer
Yes — Palo Alto Networks, Inc. (PANW) passes this Shariah stock screen. The Santa Clara cybersecurity provider (network security, cloud security, security operations, identity via CyberArk) has no disclosed prohibited business lines. Its total debt of $1,774M is about 0.55% of its ~$320.7B market cap (~$396.25, October 1, 2026), below the ~33% ceiling. Interest income of $374M is about 3.26% of FY2026 revenue ($11,480M), below the 5% non-compliant income ceiling (the 10-K's figure is used; Zoya's public page incorrectly claims $0). Zoya rates PANW Shariah-compliant; no Musaffa or ShariaPortfolio rating was found — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
Palo Alto Networks, Inc. (NASDAQ: PANW), founded in 2005 and headquartered in Santa Clara, California, is a global AI cybersecurity provider selling network-security hardware and software plus cloud-security subscriptions and support. Its platforms include Network & AI Security (Prisma Access/SASE), Cloud Security (Prisma Cloud), Security Operations (Cortex), and identity security via the February 2026 acquisition of CyberArk. FY2026 revenue was $11.48B (product $2.28B; subscription & support $9.20B). No prohibited lines are disclosed — no interest-based lending, alcohol, pork, gambling, adult entertainment, conventional insurance, weapons or tobacco. (Interest-bearing cash/investments are an asset, not a haram business segment — standard screens treat them via the ratios.) Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
Per Palo Alto Networks' Form 10-K for fiscal 2026 (fiscal year ended July 31, 2026), total debt was $1,774M — long-term convertible senior notes, carrying value, on the balance sheet ($0 short-term debt; 2030 Notes principal $1.1B noted in the debt note). Against a market cap of about $320.7B (~$396.25 on October 1, 2026; 818M shares outstanding at August 31, 2026), debt ÷ market cap is about 0.55%, below the ~33% ceiling. Cash and equivalents ($2,514M) plus short-term investments ($557M) and long-term investments ($4,835M) total $7,906M, about 2.47% of market cap. Interest expense was $0 in FY2026 (the 2025 Notes matured). Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: PASS
Palo Alto Networks' FY2026 10-K (Note 18, "Other Income (Expense), Net") reports interest income of $374M against total revenue of $11,480M — about 3.26% of revenue, below the 5% non-compliant income ceiling. (Other net: −$159M total, including FX −$35M, 2030-Notes fair-value loss −$620M, capped-call gain +$58M and other +$64M.) Data-quality note: Zoya's public page claims interest income of "$0" / "no separate interest income disclosed" — contradicted by the 10-K's $374M; the 10-K is authoritative and this page uses it. Gate 3 passes. Facts only.
Key figures used
- Business: AI cybersecurity — Network & AI Security (Prisma Access/SASE), Cloud Security (Prisma Cloud), Security Operations (Cortex), identity security (CyberArk, acquired Feb 2026); founded 2005, Santa Clara, CA
- Total debt: $1,774M (long-term convertible senior notes, carrying value; $0 short-term debt) at Jul 31, 2026 — debt ÷ market cap ≈ 0.55% of ~$320.7B (~$396.25, Oct 1, 2026; 818M shares), under the ~33% ceiling
- Cash: $7,906M (cash & equivalents $2,514M + ST investments $557M + LT investments $4,835M) ≈ 2.47% of market cap
- Interest income: $374M (10-K Note 18) vs FY2026 revenue $11,480M — ≈3.26% of revenue, under the 5% ceiling (Zoya's "$0" claim is contradicted by the 10-K)
- Interest expense $0 in FY2026 (2025 Notes matured)
- Zoya: Shariah-compliant (AAOIFI); Musaffa: no rating found; ShariaPortfolio: no public rating (HalalScreener: Halal 82/100, grade A)
Frequently asked questions
What does Palo Alto Networks do?
Palo Alto Networks, Inc. (NASDAQ: PANW), founded in 2005 and headquartered in Santa Clara, California, is a global AI cybersecurity provider selling network-security hardware and software plus cloud-security subscriptions and support. Its platforms include Network & AI Security (Prisma Access/SASE), Cloud Security (Prisma Cloud), Security Operations (Cortex), and identity security via the February 2026 acquisition of CyberArk. FY2026 revenue was $11.48B (product $2.28B; subscription & support $9.20B).
Why does Palo Alto Networks pass this Shariah stock screen?
Palo Alto Networks passes all three gates of this screen. Its business is cybersecurity — no prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons manufacturing or adult entertainment). Total debt of $1,774M (long-term convertible senior notes) is about 0.55% of its ~$320.7B market cap, below the ~33% ceiling. Interest income of $374M is about 3.26% of FY2026 revenue ($11,480M), below the 5% non-compliant income ceiling. Zoya rates PANW Shariah-compliant. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.
What is Palo Alto Networks' interest-bearing debt ratio?
Per Palo Alto Networks' Form 10-K for fiscal 2026 (fiscal year ended July 31, 2026), total debt was $1,774M — long-term convertible senior notes, carrying value, on the balance sheet ($0 short-term debt; 2030 Notes principal $1.1B noted in the debt note). Against a market cap of about $320.7B (~$396.25, October 1, 2026; 818M shares outstanding at August 31, 2026), debt ÷ market cap is about 0.55% — below the ~33% ceiling. Cash and equivalents ($2,514M) plus short-term investments ($557M) and long-term investments ($4,835M) total $7,906M, about 2.47% of market cap. Interest expense was $0 in FY2026 (the 2025 Notes matured).
What is Palo Alto Networks' non-compliant income ratio?
Palo Alto Networks' FY2026 10-K (Note 18, "Other Income (Expense), Net") reports interest income of $374M against total revenue of $11,480M — about 3.26% of revenue, below the 5% non-compliant income ceiling. (Other net: −$159M total, including FX −$35M, 2030-Notes fair-value loss −$620M, capped-call gain +$58M and other +$64M.) Note: Zoya's public page claims interest income of "$0" — contradicted by the 10-K's $374M; the 10-K is authoritative and this page uses it.
Do Zoya, Musaffa, or ShariaPortfolio cover Palo Alto Networks?
Zoya covers PANW (zoya.finance/stocks/panw): its page states "PANW is Shariah-compliant and therefore considered halal to invest in," reviewed under AAOIFI guidelines against the fiscal year ended July 31, 2026 — though its published interest-income figure ($0) is contradicted by the 10-K's $374M, so only the rating and the filing's numbers are used here. No Musaffa PANW-specific rating was found in public web search, and ShariaPortfolio publishes no public PANW rating — both honestly reported as absent, not invented. (HalalScreener rates PANW Halal 82/100, grade A, citing debt/market-cap 0.5% — consistent with the 0.55% computed here.)
Sources
- Palo Alto Networks — FY2026 Form 10-K (fiscal year ended Jul 31, 2026): business; balance sheet (debt $1,774M; cash & investments $7,906M; shares 818M); Note 18 (interest income $374M); revenue $11,480M (SEC EDGAR)
- Finnhub — PANW live quote data (price ~$396.25, market cap ~$320.7B, October 1, 2026)
- Zoya — Palo Alto Networks (PANW) stock page (Shariah-compliant, AAOIFI)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).