Microsoft (MSFT) vs Palo Alto Networks (PANW)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 7, 2026.
Summary
Palo Alto Networks (PANW) has outperformed Microsoft (MSFT) over the past year, gaining 92.2% versus a gain of 1.1%. Over five years, PANW leads with a +379.2% price change compared with +74.1% for MSFT. Microsoft is the larger company by market cap ($3.93 trillion vs $331.76 billion), about 11.9 times the size, while Palo Alto Networks is growing revenue faster (+24.5% vs +17.8%).
On valuation, Microsoft trades at a lower forward P/E (22.4x vs 83.1x for Palo Alto Networks). Microsoft pays a dividend yielding 0.69%, while Palo Alto Networks does not currently pay one. Microsoft converts more of its revenue into profit, with a net margin of 40.3% versus 2.7%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | MSFT | PANW |
|---|---|---|
| Share price | $529.76 | $405.57 |
| Market cap | $3.93T | $331.76B |
| 1-day change | +0.09% | -3.42% |
| YTD return | +9.54% | +120.18% |
| 1-year return | +1.10% | +92.18% |
| 5-year return | +74.14% | +379.16% |
| P/E ratio (TTM) | 29.51 | — |
| Forward P/E | 22.37 | 83.12 |
| EPS (TTM) | $17.95 | $0.40 |
| Dividend yield | 0.69% | 0.00% |
| Annual dividend | $3.64 | $0.00 |
| Revenue (latest FY) | $331.84B | $11.48B |
| Revenue growth (YoY) | +17.79% | +24.50% |
| Net income (latest FY) | $133.75B | $307.00M |
| Gross margin | 67.94% | 70.36% |
| Operating margin | 46.78% | 6.05% |
| Net margin | 40.31% | 2.67% |
| 52-week high | $553.72 | $432.33 |
| 52-week low | $349.20 | $139.57 |
| Distance from 52-week high | -4.33% | -6.19% |
| Analyst consensus | strong_buy | buy |
| Avg. price target upside | +10.92% | -2.13% |
| Average volume | 28.00M | 6.23M |
| Shares outstanding | 7.43B | 818.00M |
| Employees | 223,000 | 21,921 |
| Sector | Technology | Technology |
| Industry | Computer Software: Prepackaged Software | Computer peripheral equipment |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- Microsoft is about 11.9 times larger than Palo Alto Networks by market value ($3.93T vs $331.76B).
- PANW has outperformed MSFT by 91.1 percentage points over the past year.
- Microsoft is more profitable, keeping 40.3 cents of every revenue dollar as net income versus 2.7 cents for Palo Alto Networks.
- Palo Alto Networks grew revenue faster in its latest fiscal year (+24.50% vs +17.79%).
About Microsoft
MSFT stock →Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
Technology · Computer Software: Prepackaged Software · 223,000 employees
About Palo Alto Networks
PANW stock →Palo Alto Networks, Inc. provides cybersecurity solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.
Technology · Computer peripheral equipment · 21,921 employees
MSFT vs PANW FAQ
Which is bigger, Microsoft or Palo Alto Networks?
Microsoft (MSFT) is larger, with a market capitalization of $3.93T compared with $331.76B for Palo Alto Networks (PANW).
Which stock has performed better over the past year, MSFT or PANW?
PANW returned +92.18% over the past 12 months, compared with +1.10% for MSFT (price return, excluding dividends). Past performance does not predict future results.
Which pays a higher dividend, Microsoft or Palo Alto Networks?
Microsoft pays a dividend yielding 0.69%, while Palo Alto Networks does not currently pay a regular dividend.
Are Microsoft and Palo Alto Networks in the same industry?
Both are in the Technology sector, but in different industries: Computer Software: Prepackaged Software for Microsoft and Computer peripheral equipment for Palo Alto Networks.