Palo Alto Networks Q2 Earnings: EPS Beat, Revenue Up 19%, Soft Guidance And More

Palo Alto Networks Inc PANW reported fiscal second-quarter financial results Tuesday after the bell. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Palo Alto’s fiscal second-quarter revenue increased 19% year-over-year to $1.98 billion, which beat the consensus estimate of $1.97 billion, according to Benzinga Pro. The company reported quarterly earnings of $1.46 per share, which beat analyst estimates of $1.30 per share.

Remaining performance obligations grew 22% year-over-year to $10.8 billion. Adjusted operating margin grew 580 basis points year-over-year to 29%.

“Our leadership across all of our three platforms and growing cross-platform adoption puts us in a strong and unique position,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.

“With this backdrop, we are activating our accelerated platformization and consolidation strategy, as well as our AI leadership strategy.”

Outlook: Palo Alto sees fiscal third-quarter revenue of $1.95 billion to $1.98 billion versus estimates of $2.04 billion. The company expects third-quarter adjusted earnings to be between $1.24 and $1.26 per share versus estimates of $1.29 per share. 

Palo Alto expects full-year 2024 revenue to be between $7.95 billion and $8 billion. The company sees full-year earnings between $5.45 and $5.55 per share.

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

Check This Out: Palo Alto Stock’s Bullish Trend Ahead Of Q2 Earnings, Despite 113% Run And Selling Pressure

PANW Price Action: Palo Alto shares were down 12.9% after hours at $318.98 at the time of publication, according to Benzinga Pro.

Photo: Michael Vi from Shutterstock.