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Oct 31, 2024
Palo Alto Networks Q1 2025 Earnings Report
Palo Alto Networks' financial performance was reinforced by its differentiated platformization strategy
Key Takeaways
Palo Alto Networks reported a strong fiscal first quarter 2025, with revenue reaching $2.1 billion, a 14% increase year-over-year. The company's Next-Generation Security ARR grew by 40% to $4.5 billion, and remaining performance obligation increased by 20% to $12.6 billion. GAAP net income was $350.7 million, or $0.99 per diluted share, while non-GAAP net income was $544.9 million, or $1.56 per diluted share.
Total revenue for the fiscal first quarter 2025 grew 14% year over year to $2.1 billion.
GAAP net income for the fiscal first quarter 2025 was $350.7 million, or $0.99 per diluted share.
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.
Revenue by Segment
Forward Guidance
Palo Alto Networks provided guidance for the fiscal second quarter 2025 and fiscal year 2025, including Next-Generation Security ARR, remaining performance obligation, total revenue, and diluted non-GAAP net income per share.
Positive Outlook
- Next-Generation Security ARR of $4.70 billion to $4.75 billion, representing year-over-year growth of between 35% and 36%.
- Remaining performance obligation of $12.9 billion to $13.0 billion, representing year-over-year growth of between 20% and 21%.
- Total revenue in the range of $2.22 billion to $2.25 billion, representing year-over-year growth of between 12% and 14%.
- Diluted non-GAAP net income per share in the range of $1.54 to $1.56, using 350 million to 352 million shares outstanding.
- Next-Generation Security ARR of $5.52 billion to $5.57 billion, representing year-over-year growth of between 31% and 32% for fiscal year 2025.
Challenges Ahead
- Remaining performance obligation of $15.2 billion to $15.3 billion, representing year-over-year growth of between 19% and 20% for fiscal year 2025.
- Total revenue in the range of $9.12 billion to $9.17 billion, representing year-over-year growth of 14% for fiscal year 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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