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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%.
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%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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