Compared to Estimates, Palo Alto (PANW) Q4 Earnings: A Look at Key Metrics

Core Insights - Palo Alto Networks (PANW) reported revenue of $2.54 billion for the quarter ended July 2025, reflecting a year-over-year increase of 15.8% and surpassing the Zacks Consensus Estimate by 1.46% [1] - Earnings per share (EPS) for the quarter was $0.95, up from $0.75 in the same quarter last year, exceeding the consensus EPS estimate of $0.88 by 7.95% [1] Financial Performance Metrics - Remaining Performance Obligation (RPO) stood at $15.80 billion, exceeding the average estimate of $15.26 billion from six analysts [4] - Product revenue reached $573.9 million, surpassing the 14-analyst average estimate of $553.4 million, marking a year-over-year increase of 19.4% [4] - Subscription and support revenue was $1.96 billion, slightly above the average estimate of $1.95 billion, with a year-over-year growth of 14.8% [4] - Subscription revenue was $1.32 billion, matching the average estimate and reflecting a 16.6% increase compared to the previous year [4] - Product gross profit (Non-GAAP) was reported at $440.9 million, exceeding the average estimate of $435.03 million [4] - Subscription and support gross profit (Non-GAAP) was $1.48 billion, slightly below the average estimate of $1.5 billion [4] - Subscription and support gross profit (GAAP) was $1.42 billion, compared to the average estimate of $1.43 billion [4] - Product gross profit (GAAP) was $437.7 million, surpassing the average estimate of $422.66 million [4] Stock Performance - Over the past month, shares of Palo Alto Networks have returned -9.6%, contrasting with a +3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]