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Palo Alto Networks

PANW Q3 2025 Earnings

Reported May 20, 2025 at 4:06 PM ET · SEC Source

Q3 25 EPS

$0.80

BEAT +3.59%

Est. $0.77

Q3 25 Revenue

$2.29B

BEAT +0.39%

Est. $2.28B

vs S&P Since Q3 25

-25.7%

TRAILING MARKET

PANW -1.5% vs S&P +24.2%

Market Reaction

Did PANW Beat Earnings? Q3 2025 Results

Palo Alto Networks posted a solid fiscal third-quarter 2025 beat on both earnings and revenue, though the results carried an undercurrent of investor caution that sent shares lower in after-hours trading. The cybersecurity giant reported non-GAAP EPS… Read more Palo Alto Networks posted a solid fiscal third-quarter 2025 beat on both earnings and revenue, though the results carried an undercurrent of investor caution that sent shares lower in after-hours trading. The cybersecurity giant reported non-GAAP EPS of $0.80, clearing the $0.77 consensus estimate by 3.59%, while revenue of $2.29 billion edged past expectations by 0.39% and grew 15.3% year over year. The clearest driver of momentum was Next-Generation Security ARR crossing $5.10 billion, up 34% year over year, reflecting the gathering traction of Palo Alto's platformization push, which aims to consolidate enterprise security spending onto its integrated stack. A softer-than-expected non-GAAP gross margin of 76% contributed to the post-earnings stock pressure, even as management offered confident forward guidance: fiscal Q4 revenue is projected at $2.49–$2.51 billion with non-GAAP EPS of $0.87–$0.89, and full-year FY2025 revenue is expected to reach $9.17–$9.19 billion at a non-GAAP operating margin of 28.2–28.5%.

Key Takeaways

  • • Next-Generation Security ARR grew 34% YoY to $5.1 billion, crossing the $5 billion milestone
  • • Remaining performance obligations grew 19% YoY to $13.5 billion
  • • Subscription and support revenue grew to $1.84 billion from $1.59 billion YoY
  • • Non-GAAP operating margin expanded to 27.4% from 25.6% YoY
  • • Platformization strategy driving cybersecurity consolidation
24/7 Wall St

PANW YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

PANW Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“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.”

— Nikesh Arora, Q3 2025 Earnings Press Release

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