Palo Alto(US:PANW) Zhi Tong Cai Jing·2025-08-19 00:11Core Viewpoint - Palo Alto Networks reported better-than-expected fiscal year 2026 guidance driven by surging demand for AI-driven cybersecurity solutions, resulting in a 5% increase in stock price during after-hours trading [1] Financial Performance - For the fourth quarter ending July 31, Palo Alto's revenue grew 16% year-over-year to $2.54 billion, exceeding market expectations of $2.5 billion [1] - Product revenue reached $573.9 million, up 19% year-over-year; subscription and support services revenue was $1.96 billion, a 15% increase [1] - Annual recurring revenue (ARR) for next-generation security solutions hit $5.6 billion, surpassing analyst expectations of $5.55 billion [1] - Deferred revenue at the end of the period was $6.3 billion, with remaining performance obligations (RPO) totaling $15.8 billion [3] - Net profit was $254 million (or $0.36 per share), down from $358 million (or $0.51 per share) year-over-year, but adjusted earnings per share reached $0.95, exceeding the expected $0.88 [3] Future Outlook - The company forecasts full-year revenue between $10.48 billion and $10.53 billion, above the analyst average expectation of $10.43 billion; adjusted earnings per share are projected at $3.75 to $3.85, also exceeding the market expectation of $3.67 [5] - For the first quarter, revenue guidance is set at $2.45 billion to $2.47 billion, and adjusted earnings per share at $0.88 to $0.90, both better than market expectations [5] - The anticipated remaining performance obligations are between $15.4 billion and $15.5 billion, significantly above the expected $15.07 billion [5] Market Context - The company is benefiting from a technology upgrade cycle driven by AI as enterprises accelerate cloud migration and upgrade security systems amid frequent data breach incidents [5] - Recent significant cyberattacks on multinational companies like Microsoft, UnitedHealth, Disney, and Oracle have increased market demand for effective security solutions [5] - Palo Alto's new offerings, including the "Cortex Cloud" security platform and the AI application protection platform "Prisma AIRS," along with a planned $25 billion acquisition of CyberArk, are expected to enhance its cybersecurity product matrix [6] Leadership Changes - The company announced the retirement of founder and CTO Nir Zuk after over 20 years, with Lee Klarich, a senior product leader, appointed as the new CTO and joining the board [6] - Klarich will also serve as the chairman of the board's security committee to strengthen the company's AI-driven platform strategy [6]