$PANW (-3,05 %)

🔹 Non-GAAP EPS: $0.81 (Est. $0.85) 🔴

🔹 Revenue: $2.30B (Est. $2.502B) 🔴; UP +14% YoY

🔹 Next-Generation Security ARR: $4.8B; UP +37% YoY

🔹 RPO: $13.0B; UP +21% YoY

Q3 Guidance: 

🔹 Revenue: $2.26B - $2.29B (Est. $2.271B) 🟡; UP +14% to +15% YoY

🔹 Next-Generation Security ARR: $5.03B - $5.08B; UP +33% to +34% YoY

🔹 RPO: $13.5B - $13.6B; UP +19% to +20% YoY

🔹 Non-GAAP EPS: $0.76 - $0.77 (Est. $0.76) 🟡

FY25 Guidance: 

🔹 Non-GAAP EPS: $3.18 - $3.24 (Est. $3.17) 🟡

🔹 Revenue: $9.14B - $9.19B (Est. $9.148B) 🟡; UP +14% YoY

🔹 Next-Generation Security ARR: $5.52B - $5.57B; UP +31% to +32% YoY

🔹 Non-GAAP Operating Margin: 28.0% - 28.5%

Segment Performance (Q2 FY25):

🔹 Product Revenue: $421.5M; UP +7.9% YoY

🔹 Subscription and Support Revenue: $1.84B; UP +15.8% YoY

Key Operational Metrics:

🔹 Total Gross Margin: 73.5%; Flat YoY

🔹 Operating Income (Non-GAAP): $526.9M; UP +96% YoY

🔹 Operating Margin (Non-GAAP): 28.0%; UP +10pp YoY

Strategic Updates:

🔸 Announced appointments of Helle Thorning-Schmidt (former PM of Denmark) and Ralph Hamers (former CEO of UBS Group AG) to the Board of Directors.

🔸 Strength in AI-driven security solutions continues to drive Next-Generation Security platform adoption.

Management Commentary:

🔸 CEO Nikesh Arora: "Our Q2 performance highlights strong growth in Next-Generation Security and demonstrates the confidence customers place in our platforms. We remain steadfast in our 2030 plans, including achieving our $15B NGS ARR goal."

🔸 CFO Dipak Golechha: "With the benefits of scale and AI-related efficiency initiatives, we delivered profitable growth. We are raising FY25 operating margin and EPS guidance in line with these results."

$PANW (-3,05 %) has recently made an acquisition to enter the Security Information and Event Management, or SIEM, market category and go after large legacy vendors in that space. Management views SIEM as a $30 billion opportunity.

The company's platformization strategy and recent SIEM-focused acquisition are expected to fast-track its path to a $15 billion ARR target.

More customers turn from single-point solutions to platformization. This serves as a strength for $PANW (-3,05 %) .

$PANW (-3,05 %) 's platformization strategy is driving significant growth, with a notable shift from single-point solutions to total platform adoption, bolstering margins through customer expansion.

$PANW (-3,05 %) | Palo Alto Networks Q1 Earnings Highlights:

🔹 Revenue: $2.1B (Est. $2.12B) 🟡; UP +14% YoY

🔹 Product Revenue: $353.8M (Est. $341.2M) 🟢

🔹 Services Revenue: $1.785B (Est. $1.78B) 🟢

🔹 NGS ARR: $4.5B (Est. $4.37B) 🟢; UP +40% YoY

🔹 RPO: $12.6B (Est. $12.49B) 🟢; UP +20% YoY

FY25 Guidance:

🔹 Revenue: $9.12B–$9.17B (Est. $9.10B–$9.15B) 🟡; Growth +14% YoY

🔹 NGS ARR: $5.52B–$5.57B; UP +31–32% YoY

🔹 Non-GAAP Operating Margin: 27.5%–28.0% (Est. 27.5–28.0%) 🟡

🔹 Non-GAAP EPS: $6.26–$6.39 (Est. $6.18–$6.31) 🟡

🔹 Adjusted Free Cash Flow Margin: 37–38%

Q2 Guidance:

🔹 Revenue: $2.22B–$2.25B (Est. $2.23B) 🟡; Growth +12–14% YoY

🔹 NGS ARR: $4.70B–$4.75B (Est. $4.64B) 🟢

🔹 Non-GAAP EPS: $1.54–$1.56 (Est. $1.55) 🟡

🔹 RPO: $12.9B–$13.0B (Est. $13.0B) 🟡

Q1 Profitability Metrics:

🔹 Non-GAAP Gross Margin: 77.5% (Est. 77.5%) 🟡

🔹 Non-GAAP Operating Margin: 28.8% (Est. 27.7%) 🟢

🔹 Non-GAAP Net Income: $544.9M (Est. $1.48/share; $1.56/share actual) 🟢

🔹 Free Cash Flow: $1.46B (Est. $1.46B) 🟡

Key Highlights:

🔹 GAAP Net Income: $350.7M; UP +81% YoY

🔹 GAAP EPS: $0.99 (UP from $0.56 YoY)

🔹 Stock Split: Announced a 2-for-1 forward stock split effective December 13, 2024.

CEO Commentary:

🔸 "Our Q1 results reinforced our conviction in our differentiated platformization strategy," said Nikesh Arora, Chairman and CEO. "We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes."