Palo Alto Networks Reports Fiscal Second Quarter 2025 Financial Results

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]