Palo Alto Networks Inc. (PANW) reported strong financial results for its fiscal fourth quarter, exceeding analysts’ expectations on both revenue and earnings. The company’s focus on Next-Generation Security solutions continued to drive growth, solidifying its position as a leader in the cybersecurity industry.
For the quarter ending in July, Palo Alto reported revenue of $2.189 billion, surpassing the consensus estimate of $2.162 billion. Earnings per share reached $1.51, exceeding analyst expectations of $1.41 per share. This marks the fourth consecutive quarter where Palo Alto has outperformed on both the top and bottom lines.
Total revenue saw a year-over-year increase of 12%, showcasing the company’s continued momentum. Notably, the company’s remaining performance obligations (RPO), a key indicator of future revenue, grew by 20% year-over-year to $12.7 billion. This highlights the strong demand for Palo Alto’s products and services.
The company’s Next-Generation Security annual recurring revenue (ARR) also surged by 43% year-over-year to $4.2 billion, demonstrating the effectiveness of its strategy to focus on platformized security solutions.
Nikesh Arora, chairman and CEO of Palo Alto Networks, expressed confidence in the company’s trajectory, stating, “We finished off the year with strong execution on our platformization strategy in Q4. As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”
In addition to strong Q4 results, Palo Alto also provided a positive outlook for the upcoming fiscal year. The company expects first-quarter revenue to fall within the range of $2.1 billion to $2.13 billion, surpassing the current consensus estimate of $2.1 billion. Adjusted earnings per share for the first quarter are projected to be between $1.47 and $1.49, beating the current estimate of $1.43.
Looking further out, Palo Alto anticipates full-year 2025 revenue to be between $9.1 billion and $9.15 billion, exceeding the current estimate of $9.11 billion. The company expects full-year earnings to be between $6.18 and $6.31 per share, slightly above the current consensus estimate of $6.19 per share.
Palo Alto’s strong financial performance and positive outlook reflect the growing demand for cybersecurity solutions, particularly those focused on next-generation security. The company’s continued investments in innovation and execution are driving its growth and solidifying its leadership position in the market.
The company’s shares rose 2.77% in after-hours trading following the release of these positive results.
