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Palo Alto(PANW) - 2025 Q2 - Quarterly Results
2025-02-13 21:09
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. ...
Palo Alto Networks Reports Fiscal Second Quarter 2025 Financial Results
Prnewswire· 2025-02-13 21:05
Core Insights - Palo Alto Networks reported a total revenue of $2.3 billion for the fiscal second quarter 2025, reflecting a 14% year-over-year growth compared to $2.0 billion in the same quarter of the previous year [2] - The company experienced a GAAP net income of $0.3 billion, or $0.38 per diluted share, a significant decrease from $1.7 billion, or $2.44 per diluted share, in the fiscal second quarter 2024, which included a $1.5 billion net tax benefit [2][3] - Non-GAAP net income for the fiscal second quarter 2025 was $0.6 billion, or $0.81 per diluted share, up from $0.5 billion, or $0.73 per diluted share, in the prior year [3] Financial Performance - Total revenue for the fiscal second quarter 2025 was $2.3 billion, a 14% increase year-over-year [2] - Next-Generation Security Annual Recurring Revenue (ARR) grew 37% year-over-year to $4.8 billion [8] - Remaining performance obligation increased by 21% year-over-year to $13.0 billion [8] Management Commentary - The CEO highlighted that strong business performance was driven by customer adoption of AI technology, cloud investment, and infrastructure modernization [4] - The CFO noted that platformization contributed to Q2 results, with expectations for continued profitable growth and raised operating margins and EPS for the year [4] Guidance and Outlook - For the fiscal third quarter 2025, the company expects Next-Generation Security ARR to be between $5.03 billion and $5.08 billion, representing year-over-year growth of 33% to 34% [9] - Total revenue guidance for the fiscal year 2025 is projected to be in the range of $9.14 billion to $9.19 billion, indicating a year-over-year growth of 14% [9] Corporate Developments - Palo Alto Networks appointed Helle Thorning-Schmidt and Ralph Hamers to its board of directors, enhancing its leadership team [4]
Palo Alto Networks Appoints Two New Members to Board of Directors
Prnewswire· 2025-02-13 21:02
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 ...
Striim Relocates Headquarters to Historic Downtown Palo Alto, Marking a New Chapter of AI-Driven Innovation and Growth
GlobeNewswire News Room· 2025-02-13 15:00
PALO ALTO, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Striim, Inc., a leader in real-time data integration, analytics, and real-time AI, is proud to announce the relocation of its corporate headquarters to a new state-of-the-art office at 500 Emerson Street in downtown Palo Alto, California, a landmark building formerly home to Facebook and Technology Crossover Ventures. This move reflects Striim's continued growth and commitment to fostering a culture of innovation, collaboration, and technological excellen ...
Palo Alto Networks Introduces Cortex Cloud, the Future of Real-Time Cloud Security
Prnewswire· 2025-02-13 13:15
The next version of Prisma Cloud adds AI-powered prioritization, automated remediation, and a new simplified, powerful user experience. Prisma Cloud is merged with Cortex CDR to form Cortex Cloud, stopping attacks in real-time. Cortex Cloud is also available on Cortex XSIAM, making it the preferred SOC platform for enterprise and cloud. SANTA CLARA, Calif., Feb. 13, 2025  /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, is doubling down on cloud security with the introd ...
Optimism Surrounds Palo Alto Networks Before Earnings
Schaeffers Investment Research· 2025-02-11 19:17
Software name Palo Alto Networks Inc (NASDAQ:PANW) is gearing up for its latest quarterly report, due out after the close on Thursday, Feb. 13. Wall Street expects earnings of 78 cents per share on revenue of $2.24 billion, representing a 6.9% and 13.3% increase, respectively, from the same quarter last year. Keybanc is optimistic ahead of the event, lifting its price target to $240 from $217 today. Options bulls have been chiming in as well. At the International Securities Exchange (ISE), Cboe Options Exch ...
Should You Buy, Sell or Hold Palo Alto Networks Before Q2 Earnings?
ZACKS· 2025-02-11 16:35
Core Viewpoint - Palo Alto Networks is expected to report its fiscal second-quarter results on February 13, 2025, with projected revenues indicating a year-over-year increase of 12-14% [1][2]. Financial Performance - Projected revenues for the fiscal second quarter are in the range of $2.22-$2.25 billion, with a consensus estimate of $2.24 billion, reflecting a growth of 13.3% from the previous year [2]. - The non-GAAP earnings consensus for the second quarter remains at 78 cents, indicating a 6.9% increase from the same quarter last year [3]. - Palo Alto Networks has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 7.6% [4]. Market Dynamics - The company's performance is likely to benefit from strong deal wins and increased demand for machine learning-powered hardware products that enhance zero-trust network security [7]. - The accelerated migration to the cloud and the rise in cyberattacks due to hybrid working environments are driving demand for cybersecurity solutions [8]. - Federal Risk and Authorization Management Program (FedRAMP) recognitions are enhancing the adoption of Palo Alto's products by government organizations, reflecting trust in its IoT security solutions [9]. Operational Efficiency - A higher software mix, normalization in the supply chain, and improved customer support efficiencies are expected to positively impact gross margins in the upcoming quarter [10]. Stock Performance - Over the past year, Palo Alto's shares have increased by 5.4%, underperforming the Zacks Internet – Software industry and the S&P 500 index, which grew by 27.7% and 20.9%, respectively [11]. - The stock is trading at a forward 12-month price-to-sales (P/S) ratio of 13.04X, significantly higher than the industry average of 3.31X, indicating a stretched valuation [13]. Strategic Positioning - Palo Alto Networks is recognized as a leader in cybersecurity, providing solutions for network security, cloud security, and endpoint protection [16]. - The company's innovative product offerings and expanding market opportunities in areas like Zero Trust and private 5G security solutions contribute to its growth potential [17]. Challenges - Near-term prospects may be affected by softening IT spending as enterprises delay large tech investments due to macroeconomic uncertainties [18]. - The company has reported a slowdown in revenue, billings, and adjusted earnings growth over the past year, attributing this to uncertain macroeconomic conditions [18]. Conclusion - While Palo Alto's strong market position is promising, significant volatility and high valuation suggest caution, with slowing sales growth rates posing near-term risks [19].
Palo Alto Networks Q2 Earnings Preview: Maintaining Momentum Of Platformization Strategy Essential
Seeking Alpha· 2025-02-10 13:30
Core Viewpoint - Palo Alto Networks is set to release its Q2 earnings on February 13, and investors should focus on key factors that may impact the company's performance in the report [1]. Group 1 - The upcoming Q2 earnings report is a significant event for Palo Alto Networks, and it is essential for investors to monitor specific indicators that could influence the company's financial outlook [1].
Should I Buy Palo Alto Networks Stock?
The Motley Fool· 2025-02-08 11:05
Company Overview - Palo Alto Networks is a leading player in the cybersecurity industry, known for its legacy online security products and updated offerings [1][2] - The company has adopted a generalized approach to cybersecurity, which has allowed it to slightly outpace some competitors but underperform against others like CrowdStrike and Zscaler [3] Industry Context - The cybersecurity industry is projected to grow at a compound annual growth rate (CAGR) of 14% through 2032, which is expected to benefit Palo Alto Networks [2] - Despite the overall industry growth, Palo Alto's growth has been mixed compared to its peers [9] Financial Performance - In the first quarter of fiscal 2025, Palo Alto reported a 14% revenue growth year-over-year, with annual recurring revenue for its next-generation firewall increasing by 40% [6] - Operating expenses were controlled with a 9% increase, leading to a net income of $351 million, significantly up from $194 million in the previous year [6] Future Outlook - The company forecasts a continued 14% revenue growth for fiscal 2025, but anticipates a slowdown in next-generation firewall ARR growth to 31% or 32% [7] - The stock's price-to-earnings (P/E) ratio is 48, which may seem attractive compared to industry peers, but its price-to-sales (P/S) ratio is higher than most competitors except CrowdStrike [7][8] Investment Considerations - Current analysis suggests that Palo Alto stock may not be a buy compared to other cybersecurity stocks, as its growth rate has been outpaced by competitors [9] - The stock is considered expensive when measured by its sales multiple, which may deter potential investors [10]
Palo Alto Networks (PANW) Earnings Expected to Grow: Should You Buy?
ZACKS· 2025-02-06 16:06
Wall Street expects a year-over-year increase in earnings on higher revenues when Palo Alto Networks (PANW) reports results for the quarter ended January 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Febr ...