Palo Alto Reports Q3 Earnings, Raises FY25 Guidance, Shares Slide

Palo Alto Networks Inc PANW reported third-quarter financial results for fiscal 2025 after the market close on Tuesday. Here’s a rundown of the cybersecurity company’s report.

Q3 Earnings: Palo Alto reported third-quarter revenue of $2.29 billion, beating the consensus estimate of $2.28 billion. The company reported third-quarter adjusted earnings of 80 cents per share, beating analyst estimates of 77 cents per share, according to Benzinga Pro.

Total revenue was up 15% year-over-year and remaining performance obligations grew 19% year-over-year to $13.5 billion. The cybersecurity company said next-generation security annual recurring revenue increased 34% year-over-year to $5.1 billion.

Palo Alto ended the quarter with approximately $2.38 billion in cash and cash equivalents.

“In Q3, we continued to make progress on our platformization strategy and achieved an important milestone in crossing $5 billion in Next-Gen Security ARR,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “Our scale and platform breadth makes us a leading consolidator of choice in cybersecurity.”

Guidance: Palo Alto expects fiscal fourth-quarter revenue to be in the range of $2.49 billion to $2.51 billion versus estimates of $2.5 billion. The company expects fourth-quarter adjusted earnings to be between 87 cents and 89 cents per share versus estimates of 86 cents per share.

Palo Alto also raised its full-year 2025 guidance. The company now expects full-year revenue of $9.17 billion to $9.19 billion, up from prior guidance of $9.14 billion to $9.19 billion. The company now anticipates full-year adjusted earnings of $3.26 to $3.28 per share, up from prior guidance of $3.18 to $3.24 per share, per Benzinga Pro. Analysts are forecasting full-year revenue of $9.17 billion and full-year adjusted earnings of $3.22 per share.

Palo Alto executives will further discuss the company’s quarterly performance on a conference call with investors and analysts at 4:30 p.m. ET.

PANW Price Action: Palo Alto shares were up approximately 6.5% year-to-date heading into the report. The stock was down 3.81% after hours, trading at $187.09 at the time of publication Tuesday, according to Benzinga Pro.

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