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Palo Alto Networks
🇺🇸 NYSE:PANW
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Jan 31, 2024

Palo Alto Networks Q2 2024 Earnings Report

Palo Alto Networks' financial performance improved with revenue growth and a significant net income increase, driven by strategic platformization and AI leadership.

Key Takeaways

Palo Alto Networks reported a strong fiscal second quarter in 2024, with revenue increasing by 19% year-over-year to $2.0 billion. GAAP net income saw a substantial rise to $1.7 billion, or $4.89 per diluted share, which included a $1.5 billion net tax benefit. The company is focusing on accelerated platformization, consolidation strategy, and AI leadership.

Fiscal second quarter revenue increased by 19% year-over-year reaching $2.0 billion.

Remaining performance obligation (RPO) grew by 22% year-over-year, totaling $10.8 billion.

GAAP net income was $1.7 billion, or $4.89 per diluted share, including a $1.5 billion net tax benefit.

Non-GAAP operating margin expanded by 580 bps year-over-year to 29%.

Total Revenue
$1.98B
Previous year: $1.66B
+19.3%
EPS
$1.46
Previous year: $1.05
+39.0%
Gross Profit
$1.48B
Previous year: $1.19B
+24.1%
Cash and Equivalents
$1.78B
Previous year: $1.35B
+32.4%
Total Assets
$18.3B
Previous year: $13.2B
+39.0%

Palo Alto Networks

Palo Alto Networks

Palo Alto Networks Revenue by Segment

Forward Guidance

Palo Alto Networks provided financial guidance for the fiscal third quarter 2024 and updated guidance for the full fiscal year 2024.

Positive Outlook

  • Total revenue for Q3 2024 is expected to be in the range of $1.95 billion to $1.98 billion, representing year-over-year growth of between 13% and 15%.
  • Diluted non-GAAP net income per share for Q3 2024 is projected to be in the range of $1.24 to $1.26.
  • Total revenue for FY 2024 is expected to be in the range of $7.95 billion to $8.00 billion, representing year-over-year growth of between 15% and 16%.
  • Non-GAAP operating margin for FY 2024 is expected to be in the range of 26.5% to 27.0%.
  • Diluted non-GAAP net income per share for FY 2024 is projected to be in the range of $5.45 to $5.55.

Challenges Ahead

  • Total billings for Q3 2024 are expected to be in the range of $2.30 billion to $2.35 billion, representing year-over-year growth of between 2% and 4%.
  • Total billings for FY 2024 are expected to be in the range of $10.10 billion to $10.20 billion, representing year-over-year growth of between 10% and 11%.
  • The guidance is based on current market conditions and expectations, which are subject to change.
  • The company has not reconciled diluted non-GAAP net income per share guidance to GAAP net income per diluted share.
  • The company has not reconciled adjusted free cash flow margin guidance to GAAP net cash from operating activities.

Company Overview

Full financial data and analysis

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