Key Takeaways
- Palo Alto Networks reported fiscal third-quarter results that came in better than analysts had anticipated.
- The cybersecurity company issued guidance that was roughly in line with expectations.
- Palo Alto shares fell more than 8% in extended trading following the release of the quarterly earnings report.
Palo Alto Networks (PANW) reported quarterly earnings that beat analysts’ expectations and provided revenue guidance that matched estimates.
The company’s shares fell more than 8% in extended trading following the release of the fiscal 2024 third-quarter report after Monday’s closing bell.
Palo Alto reported revenue for the latest quarter of $1.98 billion, a 15% year-over-year increase and slightly ahead of analysts’ expectations, according to estimates compiled by Visible Alpha.
Net income came in at $278.8 million or 79 cents per share, versus $107.8 million or 31 cents per share in the year-ago period, and and well above analysts’ expectations.
| Q3 FY 2024 | Analyst Estimates for Q3 FY 2024 | Q3 FY 2023 | |
| Revenue | $1.98 billion | $1.97 billion | $1.72 billion |
| Diluted Earnings Per Share | 79 cents | 40 cents | 31 cents |
| Net Income | $278.8 million | $143.3 million | $107.8 million |
The cybersecurity company had previously warned about “spending fatigue” and had shifted towards a “platformization” strategy to combat it.
“We are pleased with the enthusiastic response to platformization from our customers in Q3,” Palo Alto Networks CEO Nikesh Arora said, adding that “platformization is a long-term strategy that addresses the increasing sophistication and volume of threats, and the need for AI-infused security outcomes.”
The company said it expects revenue to be between $2.15 billion and $2.17 billion in the fiscal fourth quarter and in the range of $7.99 billion to $8.01 billion for the full 2024 fiscal year. The revenue outlook was consistent with consensus estimates of $2.16 billion and $7.98 billion, respectively.