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Core Insights - Palo Alto Networks reported fiscal second quarter adjusted earnings per share of $0.81 and revenue of $2.26 billion, both slightly above analyst expectations [2][3] - The company projected third quarter revenue between $2.26 billion and $2.29 billion, with adjusted EPS of $0.76 to $0.77, aligning with analyst estimates [3] - The second-quarter performance was driven by increased customer adoption of AI-driven technologies, cloud investments, and infrastructure modernization, according to CEO Nikesh Arora [4] Company Developments - Palo Alto Networks expanded its board of directors from nine to eleven members, adding former Danish Prime Minister Helle Thorning-Schmidt and former UBS Group CEO Ralph Hamers [4][5] - Despite the positive earnings report, shares of Palo Alto Networks fell approximately 5% in premarket trading, following a nearly 10% increase over the past year [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $2.26 billion, growing 14% year-over-year, exceeding guidance [69] - Product revenue grew 8%, while total services revenue increased by 16%, with subscription revenue rising 20% and support revenue up 8% [69] - Gross margin was 76.6%, slightly down due to costs related to new SaaS offerings and inventory transitions [76] - Adjusted free cash flow was over $509 million, with a debt balance reduction of over $100 million [79] Business Line Data and Key Metrics Changes - The appliance market is expected to grow 0 to 5%, with stable demand for firewall appliances [70] - SaaS and software firewalls saw significant growth, with software bookings growing by 50% driven by AI and public cloud adoption [49] - The number of platformizations increased to over 1,150 within the top 5,000 customers, with a notable increase in two-platform and three-platform customers [28] Market Data and Key Metrics Changes - Revenue growth was double-digit across all regions: Americas grew 13%, EMEA up 18%, and JPAC increased by 17% [71] - Large deals closed included notable transactions over $50 million in both EMEA and JPAC [72] - Current Remaining Performance Obligation (RPO) grew 17% to $6.1 billion, with total RPO increasing 21% to $13 billion [74] Company Strategy and Development Direction - The company is focused on platformization, aiming for 2,500 to 3,500 platformizations by fiscal year 2030 [29] - There is a strong emphasis on integrating AI capabilities across infrastructure to enhance security operations [17][24] - The introduction of Cortex Cloud aims to unify cloud security operations and enhance real-time security capabilities [52][57] Management's Comments on Operating Environment and Future Outlook - The outlook for cybersecurity remains robust, with expectations for continued growth despite changes in the administration [16] - Management expressed confidence in achieving higher operating margins and free cash flow generation due to efficiency initiatives and platformization [67][94] - The company anticipates strong demand for security solutions driven by AI and cloud transformation projects [17][64] Other Important Information - The company received FedRAMP high authorization for its cybersecurity solutions, enhancing its position in the federal market [73] - The average duration of new contracts remained approximately three years, trending towards the high end of historical ranges [75] Q&A Session Summary Question: Free cash flow margins and profitability drivers - Management highlighted that platform deals are more efficient, contributing to improved operating margins and visibility into free cash flow due to increased deferred payments [104][108] Question: Impact of AI proliferation on security - Management discussed the significance of AI developments, emphasizing the need for security measures around AI deployments and the potential for increased experimentation in the market [116][123] Question: Leveraging AI across the platform for better security outcomes - Management explained how AI is utilized across various security areas, enhancing detection and remediation capabilities, and connecting these efforts across the entire platform [126][135]

Palo Alto Networks (PANW) reported $2.26 billion in revenue for the quarter ended January 2025, representing a year-over-year increase of 14.3%. EPS of $0.81 for the same period compares to $0.73 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.24 billion, representing a surprise of +0.91%. The company delivered an EPS surprise of +3.85%, with the consensus EPS estimate being $0.78.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Q2 Fiscal Year 2025 Earnings Call February 13, 2025 © 2025 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information. Safe Harbor This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including the cybersecurity threat landscape, expectations regarding our platformization strategy and related progress and opportunities, long-term expectations regarding annual recurring revenue, remaini ...

Palo Alto Networks (PANW) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this security software maker would post earnings of $0.74 per share when it actually produced earnings of $0.78, delivering a surprise of 5.41%.Over the last four quart ...

Palo Alto Networks exceeded earnings expectations, posting significant growth in its Next-Generation Security ARR.Cybersecurity solutions provider Palo Alto Networks (PANW 2.62%) reported fiscal 2025 second-quarter earnings results on Thursday, Feb. 13, that topped analysts' consensus expectations. Adjusted EPS came in at $0.81, topping analyst predictions of $0.78. Revenue for the quarter reached $2.3 billion, outperforming expectations of $2.24 billion and growing 14% year over year. The quarter underscor ...

Exhibit 99.1 Palo Alto Networks Reports Fiscal Second Quarter 2025 Financial Results SANTA CLARA, Calif., Feb. 13, 2025 — Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal second quarter 2025, ended January 31, 2025. Total revenue for the fiscal second quarter 2025 grew 14% year over year to $2.3 billion, compared with total revenue of $2.0 billion for the fiscal second quarter 2024. GAAP net income for the fiscal second quarter 2025 was $0. ...

Fiscal second quarter revenue grew 14% year over year to $2.3 billion. Next-Generation Security ARR grew 37% year over year to $4.8 billion. Remaining performance obligation grew 21% year over year to $13.0 billion.SANTA CLARA, Calif., Feb. 13, 2025 /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal second quarter 2025, ended January 31, 2025.Total revenue for the fiscal second quarter 2025 grew 14% year over year to $2.3 bil ...

SANTA CLARA, Calif., Feb. 13, 2025 /PRNewswire/ -- Palo Alto Networks® (NASDAQ: PANW), the global cybersecurity leader, today announced the appointment of Helle Thorning-Schmidt, former prime minister of Denmark, and Ralph Hamers, former chief executive officer of UBS Group AG and ING Group, to the company's board of directors. "It's a pleasure to welcome two visionary leaders, Helle and Ralph, to our Board of Directors, as we further our commitment to expanding the global reach of our business," said Nike ...