$PANW (-2,12%) | 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."