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Palo Alto Networks
🇺🇸 NYSE:PANW
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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.

Total Revenue
$2.14B
Previous year: $1.88B
+13.9%
EPS
$1.56
Previous year: $1.38
+13.0%
Gross Profit
$1.58B
Previous year: $1.41B
+12.8%
Cash and Equivalents
$3.4B
Previous year: $3.89B
-12.7%
Total Assets
$20.4B
Previous year: $14.8B
+37.6%

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks 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.
  • Non-GAAP operating margin in the range of 27.5% to 28.0% for fiscal year 2025.
  • Diluted non-GAAP net income per share in the range of $6.26 to $6.39, using 350 million to 354 million shares outstanding for fiscal year 2025.
  • Adjusted free cash flow margin in the range of 37% to 38% for fiscal year 2025.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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