We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palo Alto Networks Q3 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Palo Alto Networks (PANW - Free Report) delivered third-quarter fiscal 2025 non-GAAP earnings of 80 cents per share, which beat the Zacks Consensus Estimate by 3.9%. The figure improved 21.2% year over year.
Palo Alto Networks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 18.2%.
PANW’s third-quarter fiscal 2025 revenues of $2.29 billion surpassed the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $1.98 billion.
PANW’s strong performance in the third quarter of fiscal 2025 can be attributed to a robust year-over-year rise in its Subscription & Support revenues, alongside a solid gain in Product revenues. Shares of Palo Alto Networks have gained 24.8%, outperforming the Zacks Security industry’s return of 10.7% in the past year.
Palo Alto Networks, Inc. Price, Consensus and EPS Surprise
Product revenues rose 15.8% year over year to $452.7 million, accounting for 19.8% of total revenues. Subscription and Support revenues, which represented 80.2% of total revenues, grew 15.2% to $1.84 billion, driven by continued momentum across Prisma and Cortex offerings.
Deferred revenues at the end of the fiscal second quarter were $5.76 billion. Remaining performance obligation climbed to $13.5 billion, up 19% year over year. Meanwhile, Next-Generation Security annualized recurring revenues hit $5.09 billion, representing a 34% year-over-year increase and a 6% sequential rise.
Non-GAAP gross profit rose to $1.74 billion, up 13% year-over-year, while the non-GAAP gross margin contracted 60 basis points to 76.0%. Non-GAAP operating income increased 23.5% to $627.1 million, though the non-GAAP operating margin improved 180 basis points to 27.4% compared to the year-ago period.
PANW’s Balance Sheet & Cash Flow
As of April 30, 2025, Palo Alto Networks had $3.3 billion in cash, cash equivalents, and short-term investments, up from $2.23 billion as of Jan. 31, 2025. The company generated $628.7 million in operating cash flow and reported a non-GAAP adjusted free cash flow of $578.4 million in the third quarter of fiscal 2025.
Palo Alto Networks Raises FY25 Guidance
For fiscal 2025, Palo Alto Networks now expects revenues between $9.17 billion and $9.19 billion, compared with the earlier projected range of $9.14-$9.19 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $9.16 billion, indicating a rise of 14.2%. Remaining Performance Obligation is still projected in the range of $15.2-$15.3 billion. Next-Gen Security ARR is still estimated in the band of $5.52-$5.57 billion.
PANW’s fiscal 2025 non-GAAP operating margin is now projected in the range of 28.2- 28.5% compared with the previous guidance of 28-28.5%. Its adjusted free cash flow margin is estimated in the range of 37.5-38%. The company expects non-GAAP earnings per share in the range of $3.26-$3.28. After a two-for-one stock split of PANW shares on Nov. 20, 2024, the outstanding share count is in the band of 700 million-708 million. The consensus mark for fiscal 2025 earnings is pinned at $2.49 per share, suggesting an improvement of 14.2%. The figure remained unchanged over the past 60 days.
For the fourth quarter of fiscal 2025, PANW projects revenues between $2.49 billion and $2.51 billion, which suggests year-over-year growth of 14-15%. The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $2.49 billion, indicating a rise of 13.8%. Remaining Performance Obligations are anticipated between $15.2 billion and $15.3 billion. Next-Gen Security ARR is expected in the band of $5.52-$5.57 billion.
Non-GAAP earnings are projected in the range of 87-89 cents per share. The Zacks Consensus Estimate for non-GAAP earnings is pegged at 50 cents per share, unchanged over the past 60 days, indicating a year-over-year improvement of 17.14%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
APH shares have gained 26.4% for the past year. The Zacks Consensus Estimate for APH’s full-year 2025 earnings is pegged at $2.62 per share, up by 4 cents over the past seven days, suggesting a growth of 38.6% from the year-ago quarter’s reported figure.
JNPR shares have gained 4.8% in the past year. The Zacks Consensus Estimate for JNPR’s full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%.
UPWK shares have gained 38% over the past year. The Zacks Consensus Estimate for UPWK’s full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Palo Alto Networks Q3 Earnings and Revenues Surpass Estimates
Palo Alto Networks (PANW - Free Report) delivered third-quarter fiscal 2025 non-GAAP earnings of 80 cents per share, which beat the Zacks Consensus Estimate by 3.9%. The figure improved 21.2% year over year.
Palo Alto Networks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 18.2%.
PANW’s third-quarter fiscal 2025 revenues of $2.29 billion surpassed the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $1.98 billion.
PANW’s strong performance in the third quarter of fiscal 2025 can be attributed to a robust year-over-year rise in its Subscription & Support revenues, alongside a solid gain in Product revenues. Shares of Palo Alto Networks have gained 24.8%, outperforming the Zacks Security industry’s return of 10.7% in the past year.
Palo Alto Networks, Inc. Price, Consensus and EPS Surprise
Palo Alto Networks, Inc. price-consensus-eps-surprise-chart | Palo Alto Networks, Inc. Quote
Palo Alto Networks’ Q3 2025 Details
Product revenues rose 15.8% year over year to $452.7 million, accounting for 19.8% of total revenues. Subscription and Support revenues, which represented 80.2% of total revenues, grew 15.2% to $1.84 billion, driven by continued momentum across Prisma and Cortex offerings.
Deferred revenues at the end of the fiscal second quarter were $5.76 billion. Remaining performance obligation climbed to $13.5 billion, up 19% year over year. Meanwhile, Next-Generation Security annualized recurring revenues hit $5.09 billion, representing a 34% year-over-year increase and a 6% sequential rise.
Non-GAAP gross profit rose to $1.74 billion, up 13% year-over-year, while the non-GAAP gross margin contracted 60 basis points to 76.0%. Non-GAAP operating income increased 23.5% to $627.1 million, though the non-GAAP operating margin improved 180 basis points to 27.4% compared to the year-ago period.
PANW’s Balance Sheet & Cash Flow
As of April 30, 2025, Palo Alto Networks had $3.3 billion in cash, cash equivalents, and short-term investments, up from $2.23 billion as of Jan. 31, 2025.
The company generated $628.7 million in operating cash flow and reported a non-GAAP adjusted free cash flow of $578.4 million in the third quarter of fiscal 2025.
Palo Alto Networks Raises FY25 Guidance
For fiscal 2025, Palo Alto Networks now expects revenues between $9.17 billion and $9.19 billion, compared with the earlier projected range of $9.14-$9.19 billion. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $9.16 billion, indicating a rise of 14.2%. Remaining Performance Obligation is still projected in the range of $15.2-$15.3 billion. Next-Gen Security ARR is still estimated in the band of $5.52-$5.57 billion.
PANW’s fiscal 2025 non-GAAP operating margin is now projected in the range of 28.2- 28.5% compared with the previous guidance of 28-28.5%. Its adjusted free cash flow margin is estimated in the range of 37.5-38%. The company expects non-GAAP earnings per share in the range of $3.26-$3.28. After a two-for-one stock split of PANW shares on Nov. 20, 2024, the outstanding share count is in the band of 700 million-708 million. The consensus mark for fiscal 2025 earnings is pinned at $2.49 per share, suggesting an improvement of 14.2%. The figure remained unchanged over the past 60 days.
For the fourth quarter of fiscal 2025, PANW projects revenues between $2.49 billion and $2.51 billion, which suggests year-over-year growth of 14-15%. The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $2.49 billion, indicating a rise of 13.8%. Remaining Performance Obligations are anticipated between $15.2 billion and $15.3 billion. Next-Gen Security ARR is expected in the band of $5.52-$5.57 billion.
Non-GAAP earnings are projected in the range of 87-89 cents per share. The Zacks Consensus Estimate for non-GAAP earnings is pegged at 50 cents per share, unchanged over the past 60 days, indicating a year-over-year improvement of 17.14%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Zacks Rank and Stocks to Consider
Currently, PANW carries a Zacks Rank #3 (Hold).
Amphenol (APH - Free Report) , Juniper Networks (JNPR - Free Report) and Upwork (UPWK - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APH shares have gained 26.4% for the past year. The Zacks Consensus Estimate for APH’s full-year 2025 earnings is pegged at $2.62 per share, up by 4 cents over the past seven days, suggesting a growth of 38.6% from the year-ago quarter’s reported figure.
JNPR shares have gained 4.8% in the past year. The Zacks Consensus Estimate for JNPR’s full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%.
UPWK shares have gained 38% over the past year. The Zacks Consensus Estimate for UPWK’s full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter’s levels.