Palo Alto Networks Tops Estimates, Announces Stock Split

Core Insights - Palo Alto Networks reported better-than-expected revenue and profit for Q1 of fiscal 2025, leading to an increase in full-year revenue and adjusted EPS projections [1][5] - The company announced a 2-for-1 stock split, effective December 16, which aims to make shares more accessible to a broader range of investors [1][4] Financial Performance - The company achieved $2.14 billion in revenue for the quarter, a 13.8% increase from $1.88 billion year-over-year, and slightly above the consensus estimate of $2.12 billion [2] - Profit for the quarter was $350.7 million, representing an over 80% increase compared to the expected profit of $272.1 million [2] Strategic Initiatives - CEO Nikesh Arora emphasized the success of the "platformization" strategy, which consolidates services to enhance sales and improve AI outcomes [3] - Analysts from Wedbush noted that the company's platformization efforts are beginning to generate a stable pipeline of deals, with cloud penetration being a significant growth driver [3] Stock Split Details - The 2-for-1 stock split will double the existing number of shares, with shareholders of record as of December 12 receiving an additional share for each share owned after market close on December 13 [4] - The new share count and halved price will take effect on December 16 [4] Updated Outlook - The company raised its full-year revenue outlook for fiscal 2025 to a range of $9.12 billion to $9.17 billion, up from the previous range of $9.10 billion to $9.15 billion [5] - Adjusted EPS is now projected to be between $6.26 and $6.39, an increase from the prior estimate of $6.18 to $6.31 [5] Stock Performance - Palo Alto shares were up 1.4% to $398.46, approximately 35% higher than the beginning of the year [6]