NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against Palo Alto Networks (“Palo Alto” or the “Company”) (NASDAQ:PANW). The investigation concerns whether Palo Alto and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [Click here to learn more about the investigation] On February 20, 2024, during after-market hours, Palo Alto announced its financial results for Q2 2024 and lowered its ...

Palo Alto Networks (PANW) unveiled an offer for qualified customers that will help them shift to Cortex XDR and use the platform under a "no-cost" package until the existing contract expires. The package also includes Quickstart Professional services and agent migration.Cortex XDR was launched in February 2019, as a detection, investigation and response solution that combined network, endpoint and cloud data. The product utilizes behavioral analytics to mitigate the cyberattacks before the adversary inflict ...

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Nikesh Arora, CEO of Palo Alto Networks, speaks on CNBC's "Squawk Box" at the WEF Annual Meeting in Davos, Switzerland, on Jan. 16, 2024.Palo Alto Networks shares are on pace for their worst trading session since the cybersecurity hardware and software maker's 2012 initial public offering, dropping as much as 28% Wednesday. The plunge came a day after the company reduced its full-year revenue guidance.The stock doubled in value in 2023 as cyberattacks against 23andMe, Chinese bank ICBC, MGM Resorts and othe ...

Cybersecurity stocks were hit hard Wednesday after Palo Alto Networks Inc. (PANW) lowered its full-year sales guidance, raising concerns about industrywide headwinds. Palo Alto Networks late Tuesday said it now expects fiscal 2024 revenue in the range of $7.95 billion to $8 billion, down from a November estimate of between $8.15 billion and $8.2 billion. Total billings, which include deferred revenue, are expected to be between $10.1 billion and $10.2 billion; the company previously forecast a range of $10. ...

New offer alleviates the cost of switching from legacy endpoint security solutions to Cortex XDR SANTA CLARA, Calif., Feb. 21, 2024 /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW) today announced a new Cortex platform offer for endpoint security to help customers accelerate platformization and improve their endpoint protection. Organizations struggle to prevent, detect, and respond to the continuous advancement of cyberthreats. To simplify their architectures, increase efficiencies and create better secur ...

Palo Alto Networks (NASDAQ:PANW) stock is falling on Wednesday following the release of the cybersecurity company’s fiscal Q2 2024 earnings report.What’s dragging the stock lower today is the outlook in its latest earnings report. The company’s estimates for fiscal Q3 and the full year of 2024 don’t have investors excited.Starting with its fiscal Q3 guidance, Palo Alto Networks expects adjusted earnings per share to range from $1.24 to $1.26. That would come in below Wall Street’s estimate of $1.29 per shar ...

Palo Alto Networks, Inc. (PANW) reported better-than-expected results for the second quarter of fiscal 2024. The company reported non-GAAP earnings of $1.46 per share for the second quarter, beating the Zacks Consensus Estimate of $1.30. The bottom line improved 39% from the year-ago quarter’s non-GAAP earnings of $1.05 per share and came toward the higher end of the company’s earlier guidance range of $1.29-$1.31.Palo Alto’s second-quarter revenues of $1.98 billion beat the Zacks Consensus Estimate of $1.9 ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Financial Data and Key Metrics - Revenue grew 19% year-over-year to $1.98 billion, with product revenue up 11% and service revenue up 22% [5][34] - Non-GAAP operating margins expanded by nearly 600 basis points to 28.6%, and adjusted free cash flow was $2.9 billion on a trailing 12-month basis [5] - Non-GAAP EPS increased 39% year-over-year to $1.46, and GAAP net income grew significantly even without one-time items [5] - Remaining Performance Obligation (RPO) grew 22% year-over-year to $10.8 billion, with current RPO at $5.2 billion [5][34] - Billings grew 16% year-over-year, but the US federal market weakness impacted billings in Q2 [5][34] Business Line Performance - Network Security: Achieved 50% ARR growth in SASE for the fifth consecutive quarter, with over 30% of new SASE customers being new to Palo Alto Networks [6] - Prisma Cloud: Recorded the highest new ACV growth in five quarters, with 30% growth in customers using two or more modules and 60% growth in customers using three or more modules [7] - Cortex: XSIAM drove significant growth, with ARR for XSIAM customers being more than five times higher than Cortex customers without XSIAM. Bookings exceeded $90 million in Q2 [8] Market Performance - Americas, EMEA, and JPAC all grew revenue by 19% year-over-year [34] - US federal market weakness persisted, with significant shortfalls in billings due to delayed projects and certifications [9][34] - Global 2000 adoption increased, with 79% of Global 2000 companies transacting on at least two platforms and 57% on all three platforms, up from 73% and 47% two years ago [10] Strategy and Industry Competition - The company is accelerating its platformization and consolidation strategy, aiming to drive vendor consolidation and reduce customer friction through programs like legacy trade-ins and no-cost introductory offers [24][25] - The long-term target is to achieve $15 billion in ARR by 2030, with a focus on recurring revenue and industry-leading non-GAAP operating margins in the low to mid-30s [26] - The company is leveraging AI to drive growth, with AI-related opportunities estimated at $13 billion to $17 billion over the next five years [30] Management Commentary on Market and Future Outlook - Demand for cybersecurity remains strong, but customers are experiencing spending fatigue, leading to a focus on ROI and total cost of ownership [18][19] - The company sees AI as a significant inflection point in cybersecurity, with plans to roll out three new AI-based product offerings by the end of the fiscal year [27][31] - The US federal market weakness is expected to continue into Q3 and Q4, but the company is offsetting this with non-product backlog shipments [9][34] Other Key Information - The company launched programs to reduce customer friction, including legacy trade-ins and no-cost introductory offers, which are expected to impact billings and revenue growth over the next 12-18 months [24][25] - AI offerings, including XSIAM, ADEM, and AIOps, reached $100 million in ARR, marking a significant milestone in AI security [30] Q&A Summary Question: Spending Fatigue and Billings Impact - Spending fatigue refers to customers optimizing their cybersecurity budgets rather than reducing spending. The billings cut is due to deferred payments and platformization initiatives [46][47] Question: US Federal Market Weakness - The US federal market weakness is specific to delayed projects and certifications, with no broader market implications. The company expects this trend to continue into Q3 and Q4 [53][54] Question: Platformization Strategy - The platformization strategy aims to accelerate vendor consolidation and reduce customer friction. The company expects a 12-18 month impact on billings but believes this will lead to higher growth rates in the long term [56][57] Question: Pricing and Discounting - The company is not engaging in a price war but is offering deferred payment structures to reduce customer risk. This approach is expected to lead to higher renewal and expansion rates [61][68] Question: AI and Competitive Landscape - The company sees AI as a significant growth driver, with plans to roll out new AI-based products. The competitive landscape remains strong, with the company maintaining a leadership position in multiple categories [90] Question: Free Cash Flow and Margin Targets - The company is confident in maintaining its free cash flow margin targets, supported by operating margin expansion and prior contract arrangements [86][87]