Latest news with #PANW
Business Insider
7 hours ago
- Business
- Business Insider
PANW Earnings: Palo Alto Networks Reports Strong Results, Says Company Founder Is Retiring
Palo Alto Networks' (PANW) stock is up 5% after the cybersecurity firm reported financial results that beat Wall Street forecasts on both the top and bottom lines. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. For its Fiscal fourth quarter, Palo Alto Networks reported earnings per share (EPS) of $0.95. That topped the $0.88 consensus expectation of analysts. Revenue in the period totaled $2.54 billion, which was ahead of the $2.50 billion forecast on Wall Street. Sales were up 16% from a year earlier. In terms of guidance, Palo Alto Networks said that it expects Fiscal 2026 earnings per share of $3.75 to $3.85 on revenue of $10.47 billion to $10.52 billion. That was ahead of Wall Street calls for $3.67 a share in profit and sales of $10.42 billion. Palo Alto Networks' income statement. Source: Main Street Data Company Founder Retires Along with its latest financial results, Palo Alto Networks announced that company founder and Chief Technology Officer (CTO) Nir Zuk is retiring. Specifically, Zuk, who founded the cybersecurity company in 2005, is stepping down from his role as CTO. A replacement for Zuk has not been announced publicly. In July of this year, Palo Alto Networks announced plans to buy Israeli identity security provider CyberArk (CYBR) for $25 billion. It's the largest deal Palo Alto Networks has ever made and comes amid an acquisition spree that began after CEO Nikesh Arora took control of the company in 2018. PANW stock is down 3% this year. Is PANW Stock a Buy? Palo Alto Networks stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 30 Buy, six Hold, and one Sell recommendations issued in the last three months. The average PANW price target of $215.73 implies 22.36% upside from current levels. These ratings could change after the company's financial results.
Yahoo
10 hours ago
- Business
- Yahoo
Palo Alto Networks (PANW) Beats Q4 Earnings and Revenue Estimates
Palo Alto Networks (PANW) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.95%. A quarter ago, it was expected that this security software maker would post earnings of $0.77 per share when it actually produced earnings of $0.8, delivering a surprise of +3.9%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Palo Alto, which belongs to the Zacks Security industry, posted revenues of $2.54 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.46%. This compares to year-ago revenues of $2.19 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Palo Alto shares have lost about 2.7% since the beginning of the year versus the S&P 500's gain of 9.7%. What's Next for Palo Alto? While Palo Alto has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Palo Alto was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.84 on $2.44 billion in revenues for the coming quarter and $3.65 on $10.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Security is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CrowdStrike Holdings (CRWD), another stock in the same industry, has yet to report results for the quarter ended July 2025. The results are expected to be released on August 27. This cloud-based security company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -20.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CrowdStrike Holdings' revenues are expected to be $1.15 billion, up 19.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11 hours ago
- Business
- Yahoo
Compared to Estimates, Palo Alto (PANW) Q4 Earnings: A Look at Key Metrics
For the quarter ended July 2025, Palo Alto Networks (PANW) reported revenue of $2.54 billion, up 15.8% over the same period last year. EPS came in at $0.95, compared to $0.75 in the year-ago quarter. The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $2.5 billion. With the consensus EPS estimate being $0.88, the EPS surprise was +7.95%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. 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): $15.80 billion compared to the $15.26 billion average estimate based on six analysts. Revenue- Product: $573.9 million versus the 14-analyst average estimate of $553.4 million. The reported number represents a year-over-year change of +19.4%. Revenue- Subscription and support: $1.96 billion compared to the $1.95 billion average estimate based on 14 analysts. The reported number represents a change of +14.8% year over year. Revenue- Subscription and support- Support: $647.4 million versus the three-analyst average estimate of $625.85 million. The reported number represents a year-over-year change of +11.3%. Revenue- Subscription and support- Subscription: $1.32 billion versus $1.32 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.6% change. Product gross profit Non-GAAP: $440.9 million compared to the $435.03 million average estimate based on 10 analysts. Subscription and support gross profit Non-?GAAP: $1.48 billion compared to the $1.5 billion average estimate based on 10 analysts. Subscription and support gross profit GAAP: $1.42 billion versus the two-analyst average estimate of $1.43 billion. Product gross profit GAAP: $437.7 million versus $422.66 million estimated by two analysts on average. View all Key Company Metrics for Palo Alto here>>> Shares of Palo Alto have returned -9.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
Palo Alto Networks Fourth-Quarter Results Beat Views; Shares Rise After Hours
Palo Alto Networks (PANW) late Monday reported stronger-than-expected fiscal fourth-quarter results Sign in to access your portfolio
Yahoo
13 hours ago
- Business
- Yahoo
Palo Alto Networks (NASDAQ:PANW) Beats Q2 Sales Expectations, Stock Soars
Cybersecurity platform provider Palo Alto Networks (NASDAQ:PANW) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 15.8% year on year to $2.54 billion. Guidance for next quarter's revenue was better than expected at $2.46 billion at the midpoint, 0.9% above analysts' estimates. Its non-GAAP profit of $0.95 per share was 7.3% above analysts' consensus estimates. Is now the time to buy Palo Alto Networks? Find out in our full research report. Palo Alto Networks (PANW) Q2 CY2025 Highlights: Revenue: $2.54 billion vs analyst estimates of $2.50 billion (15.8% year-on-year growth, 1.4% beat) Adjusted EPS: $0.95 vs analyst estimates of $0.89 (7.3% beat) Revenue Guidance for Q3 CY2025 is $2.46 billion at the midpoint, above analyst estimates of $2.44 billion Adjusted EPS guidance for the upcoming financial year 2026 is $3.80 at the midpoint, beating analyst estimates by 3.2% Operating Margin: 19.6%, up from 10.9% in the same quarter last year Market Capitalization: $118.3 billion "Our strong execution in Q4 reflects a fundamental market shift in which customers understand that a fragmented defense is no defense at all against modern threats. They are partnering with us because our platforms are designed to work in concert, creating powerful operational synergies that deliver superior, near real-time outcomes and the efficiency our customers need," said Nikesh Arora, chairman and CEO of Palo Alto Networks. Company Overview Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Palo Alto Networks grew its sales at a 18.8% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. This quarter, Palo Alto Networks reported year-on-year revenue growth of 15.8%, and its $2.54 billion of revenue exceeded Wall Street's estimates by 1.4%. Company management is currently guiding for a 15% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and indicates the market sees success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. Palo Alto Networks is extremely efficient at acquiring new customers, and its CAC payback period checked in at 19.3 months this quarter. The company's rapid recovery of its customer acquisition costs means it can attempt to spur growth by increasing its sales and marketing investments. Key Takeaways from Palo Alto Networks's Q2 Results We were impressed by Palo Alto Networks's optimistic full-year EPS guidance, which blew past analysts' expectations. We were also glad its EPS guidance for next quarter exceeded Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 6.6% to $188.10 immediately following the results. Indeed, Palo Alto Networks had a rock-solid quarterly earnings result, but is this stock a good investment here? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
