Palo Alto Networks Reports Fiscal Fourth Quarter and Fiscal Year 2025 Financial Results

Core Insights - Palo Alto Networks reported a total revenue of $2.5 billion for the fiscal fourth quarter of 2025, reflecting a 16% year-over-year growth compared to $2.2 billion in the same quarter of 2024 [2] - The company's GAAP net income for the fourth quarter was $253.8 million, or $0.36 per diluted share, down from $357.7 million, or $0.51 per diluted share, in the prior year [2] - Non-GAAP net income for the fourth quarter was $673.0 million, or $0.95 per diluted share, compared to $522.2 million, or $0.75 per diluted share, in the same quarter of 2024 [3] Financial Performance - Fiscal year 2025 revenue reached $9.2 billion, marking a 15% increase from $8.0 billion in fiscal year 2024 [6] - Next-Generation Security Annual Recurring Revenue (ARR) grew by 32% year-over-year to $5.6 billion [6] - Remaining performance obligation increased by 24% year-over-year to $15.8 billion [6] Management Commentary - The CEO highlighted a market shift where customers recognize the need for integrated security solutions, leading to increased partnerships with Palo Alto Networks [4] - The CFO noted the company's strong operating efficiency and free cash flow generation, maintaining a 'Rule-of-50' status for the fifth consecutive year [4] Financial Outlook - For the fiscal first quarter of 2026, the company expects total revenue in the range of $2.45 billion to $2.47 billion, representing a year-over-year growth of 15% [7] - For the fiscal year 2026, total revenue is projected to be between $10.475 billion and $10.525 billion, indicating a year-over-year growth of 14% [7] - Non-GAAP diluted net income per share is expected to be in the range of $3.75 to $3.85 for fiscal year 2026 [7] Key Metrics - The company reported a total gross profit of $1.857 billion for the fourth quarter, up from $1.616 billion in the same quarter of the previous year [20] - Operating income for the fourth quarter was $497.2 million, compared to $238.4 million in the prior year [20] - Total assets increased to $23.576 billion as of July 31, 2025, from $19.991 billion a year earlier [25]