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Palo Alto Networks

PANW Q1 2025 Earnings

Reported Nov 20, 2024 at 4:13 PM ET · SEC Source

Q1 25 EPS

$1.56

BEAT +5.79%

Est. $1.47

Q1 25 Revenue

$2.14B

BEAT +0.85%

Est. $2.12B

vs S&P Since Q1 25

-23.6%

TRAILING MARKET

PANW -1.7% vs S&P +21.9%

Market Reaction

Did PANW Beat Earnings? Q1 2025 Results

Palo Alto Networks posted a solid fiscal first quarter for 2025, beating Wall Street estimates on both revenue and earnings as its platformization strategy continued to gain traction with enterprise customers. The cybersecurity giant reported non-GAA… Read more Palo Alto Networks posted a solid fiscal first quarter for 2025, beating Wall Street estimates on both revenue and earnings as its platformization strategy continued to gain traction with enterprise customers. The cybersecurity giant reported non-GAAP EPS of $1.56, topping the consensus estimate of $1.47 by 5.79%, while revenue climbed 13.9% year over year to $2.14 billion, edging past the $2.12 billion analysts had expected. The standout driver was Next-Generation Security ARR, which surged 40% year over year to $4.50 billion, reflecting strong adoption of Palo Alto's Prisma, Cortex, and cloud-delivered security services, a figure that now also incorporates QRadar SaaS contracts folded in from IBM. Remaining performance obligations reached $12.60 billion, up 20%, signaling durable demand ahead. Management raised its full-year fiscal 2025 revenue outlook to $9.12 billion to $9.17 billion and lifted non-GAAP EPS guidance to $6.26 to $6.39, though some investors found the raised forecast merely in line with existing expectations, sending shares lower after hours.

Key Takeaways

  • • Platformization strategy driving customer adoption and recurring revenue growth
  • • Next-Generation Security ARR grew 40% year over year to $4.5 billion
  • • Remaining performance obligation grew 20% year over year to $12.6 billion
  • • Subscription and support revenue grew 16% year over year to $1.785 billion
24/7 Wall St

PANW YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

PANW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Our Q1 results reinforced our conviction in our differentiated platformization strategy. We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes. I expect this will be a multiyear trend for which we are best positioned to deliver to our customers.”

— Nikesh Arora, Q1 2025 Earnings Press Release

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