Financial Data and Key Metrics Changes - Consolidated gross billings reached $22.7 billion, growing 12%, or 10% in constant currency, with non-GAAP diluted earnings per share of $3.58, a 25% year-over-year increase [3][4][10] - Net revenue was $15.7 billion, up 7% year over year, with gross profit increasing 18% to $1.1 billion [12][14] - Non-GAAP operating income rose 21% year over year to $475 million, with a non-GAAP operating margin of 2.09%, representing a 15 basis point improvement [13][14] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio saw a 10% increase in gross billings, driven by demand for PCs and a higher mix of AI PCs [10][11] - Advanced Solutions portfolio gross billings increased by 13% year over year, with HIVE reporting mid-30s growth due to strong demand in cloud infrastructure [11][12] - Software gross billings increased by 26%, driven by cybersecurity and infrastructure software [4] Market Data and Key Metrics Changes - Latin America and Asia Pacific & Japan experienced strong double-digit growth in gross billings, validating the company's go-to-market strategy [5] - The U.S. public sector business saw low single-digit growth, with state and local strength offset by federal softness [6] Company Strategy and Development Direction - The company is focused on expanding its addressable market by onboarding new vendors and enhancing its go-to-market strategy [6][9] - The Destination AI Enablement Program is being enhanced to support partners in adopting AI solutions [7] - A unified portal, TD SYNNEX Partner First, is being launched to optimize partner experience and streamline operations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance, particularly in HIVE and distribution, driven by healthy demand from hyperscalers [19][30] - The company anticipates gross billings in Q4 to be in the range of $23 to $24 billion, representing an increase of approximately 11% at the midpoint [16] Other Important Information - Free cash flow for the year is expected to be approximately $800 million, with Q4 free cash flow projected around $850 million [24][25] - The board approved a cash dividend of $0.44 per common share, payable on October 31, 2025 [15] Q&A Session Summary Question: HIVE dynamics in fiscal forecast - Management noted that HIVE had significant growth across all programs and customers, with expectations for continued demand in Q4 [19][20] Question: Comments on PC pull forward and free cash flow expectations - Management indicated limited pull forward for PCs, driven mainly by the Windows 11 refresh and AI PCs, with free cash flow expectations adjusted to approximately $800 million for the year [22][24] Question: Sustainability of current performance - Management believes the overperformance is sustainable, driven by strong demand in PCs, software, and cybersecurity [30] Question: Progress in onboarding new customers for HIVE - Management confirmed ongoing progress in diversifying the customer base, with growth primarily from networking and traditional compute [33][34]

Group 1 - Palo Alto Networks reported a 16% increase in revenue for the fiscal fourth quarter, reaching approximately $2.54 billion, compared to about $2.2 billion in the previous year [1][5] - Net income decreased to about $254 million, or 36 cents per share, down from approximately $358 million, or 51 cents per share, in the same period last year [1] - The company provided optimistic guidance for the fiscal first quarter, projecting earnings per share between 88 cents and 90 cents, exceeding the StreetAccount estimate of 85 cents [2] Group 2 - For the full fiscal year, Palo Alto expects revenue to range from $10.48 billion to $10.53 billion, with adjusted earnings between $3.75 and $3.85 per share, both surpassing Wall Street projections [2] - Remaining purchase obligations, which indicate backlog, are anticipated to be between $15.4 billion and $15.5 billion, exceeding the estimate of $15.07 billion [3] - The company announced plans to acquire CyberArk for $25 billion, marking its largest deal since inception and reflecting an aggressive acquisition strategy under CEO Nikesh Arora [3] Group 3 - Following the announcement of the acquisition, shares experienced a sharp sell-off, resulting in a 3% decline year-to-date as of the latest close [4] - Lee Klarich will succeed Nir Zuk as CTO and will also join the board, as Zuk retires from his role [4]