Why Palo Alto Networks Shares Are Up 9% Today

Palo Alto Networks Inc PANW shares are trading higher by 8.81% to $170.36 after the company reported better-than-expected first-quarter EPS and sales results. The company also issued second-quarter and FY23 EPS guidance above analyst estimates.

What Happened?

Palo Alto Networks reported quarterly earnings of 83 cents per share which beat the analyst consensus estimate of 69 cents by 20.29 percent. The company reported quarterly sales of $1.56 billion which beat the analyst consensus estimate of $1.55 billion by roughly 1%.

Palo Alto Networks sees second-quarter adjusted EPS of 76 cents to 78 cents vs. the $0.71 estimate. Palo Alto sees total revenue of $1.63 billion to $1.66 billion vs. $1.65 billion estimate, total billings between $1.94 billion to $1.99 billion.

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Palo Alto also sees FY23 adjusted EPS between $3.37 tot $3.44 vs. the $3.17 estimate, as well as total revenue between $6.85 billion to $6.91 billion vs. the $6.87 billion estimate.

"Our growth in Q1 was driven by customers continuing to increase their commitments to our security platforms as they are able to choose our best-of-breed capability and simplify their security architecture," said Nikesh Arora, chairman and CEO of Palo Alto Networks.

"We are focused on expanding the breadth of our offerings and our pace of innovation to continue to drive share gains in the cybersecurity market."

According to data from Benzinga Pro, PANW has a 52-week high of $213.63 and a 52-week low of $140.08.