Earnings Performance - Palo Alto Networks reported a beat and raise during its Q1'25 earnings on November 20, 2024, resulting in mixed price action with a -5% drop post-earnings before recovering the following day [1] - The company provided guidance for Q2'25 and FY25, indicating positive expectations for future performance [1] Analyst Background - Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience and a decade in professional services across various industries including O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary [1] - Michael employs a macro-value-oriented approach to investment analysis, leveraging cross-industry insights for investment recommendations [1]

Palo Alto Networks, Inc. (PANW) , a cybersecurity powerhouse, delivered stellar results for its first quarter of fiscal 2025, surpassing market expectations and solidifying its position as a leader in the evolving cybersecurity landscape. With robust financial performance, strategic advancements and an optimistic outlook, PANW presents a compelling investment opportunity. Here’s why you should consider buying Palo Alto Networks stock now.PANW’s Impressive Q1 Earnings Beat ExpectationsPalo Alto Networks repo ...

Investment Rating - The report maintains a "Buy" rating for Palo Alto Networks (PANW) with a target price raised by 17% to $464.40, based on a consistent price-to-sales ratio of 16.0x [3][14]. Core Insights - Palo Alto Networks reported a 13.9% year-over-year revenue growth for Q1 FY2025, reaching $2.1 billion, slightly exceeding Bloomberg consensus estimates by 1% [3]. - Non-GAAP net income for the same period was $544.9 million, reflecting a 17% increase year-over-year and surpassing consensus expectations by 6% [3]. - The company's platform strategy is showing initial success, which is expected to drive long-term market share growth [3]. Summary by Sections Revenue Overview - Subscription and support revenue grew by 16% to $1.8 billion, accounting for 83% of total revenue, driven by increased adoption of Next-Generation Security (NGS) products [4]. - NGS Annual Recurring Revenue (ARR) reached $4.52 billion, a 40% year-over-year increase [4]. Financial Performance - Non-GAAP operating profit was $616.2 million, with a margin of 28.8%, exceeding market expectations by 1.2 percentage points [4]. - The report anticipates Q2 FY2025 total revenue to reach $2.23 billion, reflecting a 13% year-over-year growth [4]. Product Growth - Active SASE customer count increased by 20% year-over-year, with over 40% of new SASE customers being first-time adopters of PANW products [5]. - Cortex ARR reached $1 billion, with significant growth driven by XSIAM, where 40 customers have ARR exceeding $1 million, marking a 180% year-over-year increase [5]. Guidance Update - Management raised FY2025 guidance due to optimistic Q1 performance: NGS ARR is now projected between $5.52 billion and $5.57 billion, total revenue between $9.12 billion and $9.17 billion, and diluted non-GAAP EPS between $6.26 and $6.39 [6]. Valuation Metrics - The target enterprise value/sales for FY2025 is set at $158.2 billion, with a target price of $464.40 based on projected revenue [14]. - The report indicates a consistent growth trajectory in revenue and profitability metrics, with adjusted net income expected to reach $2.26 billion in FY2025 [16].

Investment Rating - The report maintains a "BUY" rating for Palo Alto Networks (PANW) with a target price raised by 17% to US$464.4, reflecting a potential upside of 16.8% from the current price of US$397.70 [1][3]. Core Insights - Palo Alto Networks reported strong 1QFY25 results, with total revenue increasing by 13.9% year-over-year to US$2.1 billion, surpassing Bloomberg consensus by 1% [1]. - Non-GAAP net income for the same period reached US$544.9 million, up 17% year-over-year, and 6% better than consensus, driven by optimized sales and marketing expenses [1]. - The company's Platformization strategy is showing early positive results, which is expected to enhance long-term market share and operational efficiency [1]. Summary by Sections Financial Performance - 1QFY25 subscription and support revenue grew 16% year-over-year to US$1.8 billion, accounting for 83% of total revenue [1]. - Non-GAAP operating profit reached US$616.2 million, translating to a 28.8% non-GAAP operating profit margin, which is 1.2 percentage points better than consensus [1]. - The company has lifted its FY25 guidance for NGS ARR to US$5.52 billion - US$5.57 billion and total revenue to US$9.12 billion - US$9.17 billion [1]. Key Operating Metrics - The number of active SASE customers grew by 20% year-over-year, with over 40% of new SASE customers being new to PANW [1]. - NGS ARR reached US$4.52 billion by the end of 1QFY25, up 40% year-over-year, with expectations for continued growth driven by SASE and XSIAM products [1]. - The company achieved 1,100 total Platformizations among its top 5,000 customers, with a 6% increase in NGS ARR per platformized customer compared to FY24 [1]. Revenue Projections - FY25 revenue is projected at US$9.15 billion, reflecting a year-over-year growth of 14% [2]. - Non-GAAP net profit for FY25 is estimated at US$2.26 billion, with an adjusted EPS of US$6.45 [2]. - The revenue growth is expected to continue into FY26 and FY27, with projections of US$10.64 billion and US$12.27 billion respectively [2].

Palo Alto Networks Inc (NASDAQ:PANW) yesterday reported better-than-expected fiscal first-quarter earnings and revenue, as demand for its cybersecurity services grows stronger due to rising digital threats. The company also announced a two-for-one stock split. Sector peers Crowdstrike Holdings Inc (NASDAQ:CRWD) and SentinelOne Inc (NYSE:S) are enjoying halo lifts in response, making now a good time to check in on the sector.PANW is up 1.5% to trade at $398.57 at last check, which is within striking distance ...

Key TakeawaysPalo Alto Networks reported better revenue and profit than expected for the first quarter of fiscal 2025.The cybersecurity company lifted its projections for full-year revenue and adjusted earnings per share (EPS).Palo Alto Networks also said it will undergo a 2-for-1 stock split next month. Palo Alto Networks (PANW) posted better-than-expected fiscal 2025 first-quarter results and announced a 2-for-1 stock split after the bell Wednesday. The cybersecurity company reported $2.14 billion in reve ...

Palo Alto Networks (PANW) delivered first-quarter fiscal 2025 non-GAAP earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate by 5.4%. The figure improved 13% year over year, exceeding management’s guidance of $1.47-$1.49. Palo Alto’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 7.6%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.PANW’s first-quarter fiscal 2025 revenues of $2.14 billion beat the Zack ...

Palo Alto Networks TodayPANWPalo Alto Networks$390.71 -2.18 (-0.55%) 52-Week Range$260.09▼$408.53P/E Ratio53.89Price Target$403.59Add to WatchlistPalo Alto Network’s NASDAQ: PANW stock price has been in a multi-year uptrend that will continue for many more years because of its leadership position in cybersecurity. It is the world’s leading cybersecurity provider, and its business is supported by the increasing use of digitization by businesses and industries, compounded by the exponential rise in cyber thr ...

Malicious hackers have compromised potentially thousands of organizations by exploiting two new zero-day vulnerabilities found in widely used software made by cybersecurity giant Palo Alto Networks.Security researchers at Palo Alto Networks said Wednesday that they have observed a “limited set of exploitation activity” related to the two vulnerabilities in PAN-OS, the operating system that runs on all of Palo Alto’s next-generation firewalls. The bugs are considered zero-days because the company had no time ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year. With a focus on tech and "the Great Energy Transition (including uranium)", Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outst ...