If You'd Invested $100 in Palo Alto Networks (PANW) Stock 5 Years Ago, Here's How Much You'd Have Today (Hint: You'd Have More Than Doubled Your Dollars)

The need for cybersecurity is not going away anytime soon -- which is great for this company.If you like to follow the stock market and keep up with booming industries, you're probably aware of Palo Alto Networks (PANW 0.89%), a leader in the cybersecurity realm. You might even be wishing you had invested in it years ago. To give you an idea of how the stock has performed, if you'd invested in it five years ago with just $100, you'd now have a position worth $255 (as of Feb. 13). If you'd invested $10,000, your stake would be worth $25,475. Both of those gains reflect annualized average returns of 20.6% for Palo Alto Networks, versus a still-respectable 12.6% gain for the S&P 500 index over the same period. Image source: Getty Images. All this is looking back, though. As an investor, it's far more important to look forward. Yes, you may have missed out on an impressive gain, but where does the stock seem to be headed next? If it still seems to have growth potential, as this stock does, and its stock doesn't seem overvalued, as this one doesn't, you might still buy into it and do well. ExpandNASDAQ: PANWPalo Alto NetworksToday's Change(-0.89%) $-1.36Current Price$150.99Key Data PointsMarket Cap$106BDay's Range$148.15 - $152.6852wk Range$144.15 - $223.61Volume14MAvg Vol8.7MGross Margin73.50% Palo Alto Networks has recently been transitioning customers to a simplified set of platforms that are powered by artificial intelligence (AI). Its subscription-based services should delight investors, as they provide the company with dependable recurring revenue. In its fiscal 2025, which ended July 31, 2025, revenue grew by 15% year over year, and management is projecting 14% growth in the current fiscal year. At the time of its fourth-quarter report, CEO Nikesh Arora noted, "Our strong execution in Q4 reflects a fundamental market shift in which customers understand that a fragmented defense is no defense at all against modern threats. They are partnering with us because our platforms are designed to work in concert, creating powerful operational synergies that deliver superior, near real-time outcomes and the efficiency our customers need." Best of all, the stock seems reasonably valued at a forward price-to-earnings ratio of 49, a bit below its five-year average of 54. The need for cybersecurity services seems likely to keep growing, which is promising for Palo Alto Networks and other great cybersecurity stocks.Read NextFeb 19, 2026 •By Danny Vena, CPAWhy Palo Alto Networks Stock Slumped This WeekFeb 18, 2026 •By Keith NoonanWhy Palo Alto Networks Stock Sank TodayFeb 16, 2026 •By Rick Munarriz3 Stock Updates You'll Want to Watch This WeekFeb 16, 2026 •By Adam Levy1 Incredible Growth Stock to Buy Right Now With $200Feb 14, 2026 •By James Hires1 Top Cybersecurity Stock to Buy in FebruaryFeb 13, 2026 •By Leo SunShould You Buy Palo Alto Networks Stock Before Earnings?About the AuthorSelena Maranjian is a contributing personal finance and investing expert at The Motley Fool. Selena has produced The Motley Fool’s nationally syndicated newspaper feature since 1997. She is the author of The Motley Fool Money Guide and Investment Clubs: How to Start and Run One the Motley Fool Way, and the co-author of The Motley Fool Investment Guide for Teens and several editions of The Motley Fool Investment Tax Guide. Prior to The Motley Fool, she worked as a high school teacher and public opinion analyst. She holds a master’s degree in teaching from Brown University and a master’s degree in finance from the Wharton School of the University of Pennsylvania.TMFSelenaStocks MentionedPalo Alto NetworksNASDAQ: PANW$150.99 (0.89%) $1.36*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.