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Palo Alto (PANW) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended October 2025, Palo Alto Networks (PANW - Free Report) reported revenue of $2.47 billion, up 15.7% over the same period last year. EPS came in at $0.93, compared to $0.78 in the year-ago quarter.
The reported revenue represents a surprise of +0.52% over the Zacks Consensus Estimate of $2.46 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +4.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
RPO (Remaining Performance Obligation): $15.50 billion compared to the $15.47 billion average estimate based on six analysts.
Revenue- Product: $434 million compared to the $423.19 million average estimate based on 13 analysts. The reported number represents a change of +22.7% year over year.
Revenue- Subscription and support: $2.04 billion compared to the $2.04 billion average estimate based on 13 analysts. The reported number represents a change of +14.3% year over year.
Revenue- Subscription and support- Support: $676 million versus the two-analyst average estimate of $651.71 million. The reported number represents a year-over-year change of +14%.
Revenue- Subscription and support- Subscription: $1.36 billion versus $1.39 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +14.5% change.
Product gross profit Non-GAAP: $348 million versus the nine-analyst average estimate of $333.92 million.
Subscription and support gross profit Non-?GAAP: $1.55 billion compared to the $1.56 billion average estimate based on nine analysts.
Subscription and support gross profit GAAP: $1.49 billion versus the two-analyst average estimate of $1.51 billion.
Product gross profit GAAP: $345 million compared to the $333.26 million average estimate based on two analysts.
Shares of Palo Alto have returned -6.3% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Palo Alto (PANW) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended October 2025, Palo Alto Networks (PANW - Free Report) reported revenue of $2.47 billion, up 15.7% over the same period last year. EPS came in at $0.93, compared to $0.78 in the year-ago quarter.
The reported revenue represents a surprise of +0.52% over the Zacks Consensus Estimate of $2.46 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +4.49%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for Palo Alto here>>>
Shares of Palo Alto have returned -6.3% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.