Palo Alto Networks posts better-than-expected earnings

Key conclusions

Palo Alto Networks reported higher-than-expected fiscal fourth-quarter earnings.
Quarterly revenue increased compared to the same period last year and slightly exceeded analysts’ forecasts, while profit was also higher than analysts’ estimates.
Palo Alto Networks CEO Nikesh Arora highlighted the company’s “solid execution” of its platformization strategy.

Palo Alto Networks (PANW) reported better-than-expected earnings for its fiscal fourth quarter of 2024, with CEO Nikesh Arora highlighting “solid execution” of the company’s platformization strategy.

The cybersecurity provider reported fiscal fourth-quarter revenue of $2.18 billion, up 12% from the same period last year and slightly ahead of analyst estimates. Net income was $357.7 million, or $1.01 per share, up from a year earlier and ahead of expectations.

For the full fiscal year 2024, revenue and net income were $8.03 billion and $2.58 billion, respectively, which exceeded analysts’ expectations.

“Strong execution” of platformization strategy

“We ended the year with solid execution on our platformization strategy,” Palo Alto Networks CEO Nikesh Arora said in the release, adding that “as we look ahead to fiscal 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”

The company has embarked on a platformization plan in which it consolidates cybersecurity services onto its platform and combines offerings to become a one-stop shop for customers.

Palo Alto Networks expects fiscal first-quarter 2025 revenue to be in the range of $2.1 billion to $2.13 billion, and full-year fiscal 2025 revenue to be in the range of $9.1 billion to $9.15 billion. Both figures are roughly in line with analysts’ expectations.

Palo Alto Networks shares were little changed in extended trading Monday after the release. The stock was up more than 16% year-to-date through Monday’s close.