Palo Alto outperforms estimates for fiscal third quarter
Published: 16:29 20 May 2025 EDT
Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) shares fell afterhours despite the cybersecurity firm reporting better-than-expected financial results for the fiscal third quarter.
The company reported a 15% year-over-year jump in revenue to $2.3 billion for the April quarter, slightly above estimates of $2.28 billion.
Next Generation Security annual recurring revenue (ARR) grew 34% to $5.1 billion.
Earnings per share of $0.90 were up from $0.66 in the year-ago quarter, above estimates of $0.77.
Remaining Performance Obligations (RPO) grew 19% to $13.5 billion, at the lower end of expectations of $13.5 billion to $13.6 billion.
"In Q3, we continued to make progress on our platformization strategy and achieved an important milestone in crossing $5 billion in Next-Gen Security ARR," Palo Alto CEO Nikesh Arora said in a statement. "Our scale and platform breadth makes us a leading consolidator of choice in cybersecurity."
For fiscal Q4, Palo Alto guided revenue growth of 14% to 15% to between $2.49 billion and $2.51 billion and adjusted EPS in the range of $0.87 to $0.89.
Investors appeared disappointed in this guidance, sending shares of Palo Alto down 3.8% to about $187 post-earnings.
