Palo Alto: AI Advancements to Drive Next-Gen Sequencing (NGS) Product Development
Palo Alto (PANW) Q3 earnings beat estimates with $2.29B revenue (+15% YoY). AI-driven security growth & $15B ARR target on track.
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Palo Alto (NASDAQ: PANW) delivered a strong third-quarter performance, with both revenue and earnings surpassing expectations. Specifically, third-quarter revenue reached $2.29 billion, representing a year-over-year increase of 15.33%, exceeding analyst expectations by $8.99 million.
Non-GAAP diluted earnings per share were $0.80, up 21.2% year-over-year, beating analyst expectations by $0.03.
Non-GAAP operating margin was 27.4%. Remaining Performance Obligations (RPO) also performed strongly, growing 19% year-over-year to $13.5 billion.
The company also issued robust guidance for the fourth quarter and full-year performance. Specifically, fiscal 2025 revenue is expected to be between $9.17 billion and $9.19 billion, with the midpoint aligning with analyst expectations.
Fiscal 2025 non-GAAP diluted earnings per share are projected to be between $3.26 and $3.28, with the midpoint $0.04 above analyst expectations. Fiscal 2025 RPO is expected to be between $15.2 billion and $15.3 billion.
For the fourth quarter specifically, revenue is expected to be between $2.49 billion and $2.51 billion, with the guidance midpoint in line with expectations. Non-GAAP diluted earnings per share are projected to be between $0.87 and $0.89, with the midpoint slightly above analyst expectations by $0.01.