Earnings out and more of the same:
- Fiscal first quarter revenue grew 14% year over year to $2.1 billion.
- Next-Generation Security ARR grew 40% year over year to $4.5 billion.
- Remaining performance obligation grew 20% year over year to $12.6 billion.
GAAP net income for the fiscal first quarter 2025 was $350.7 million, or $0.99 per diluted share, compared with GAAP net income of $194.2 million, or $0.56 per diluted share, for the fiscal first quarter 2024.
Non-GAAP net income for the fiscal first quarter 2025 was $544.9 million, or $1.56 per diluted share, compared with non-GAAP net income of $466.3 million, or $1.38 per diluted share, for the fiscal first quarter 2024.
And Future guidance:
For the fiscal second quarter 2025, we expect:
- Next-Generation Security ARR of $4.70 billion to $4.75 billion, representing year-over-year growth of between 35% and 36%.
- Remaining performance obligation of $12.9 billion to $13.0 billion, representing year-over-year growth of between 20% and 21%.
- Total revenue in the range of $2.22 billion to $2.25 billion, representing year-over-year growth of between 12% and 14%.
- Diluted non-GAAP net income per share in the range of $1.54 to $1.56, using 350 million to 352 million shares outstanding.
For the fiscal year 2025, we expect:
- Next-Generation Security ARR of $5.52 billion to $5.57 billion, representing year-over-year growth of between 31% and 32%.
- Remaining performance obligation of $15.2 billion to $15.3 billion, representing year-over-year growth of between 19% and 20%.
- Total revenue in the range of $9.12 billion to $9.17 billion, representing year-over-year growth of 14%.
- Non-GAAP operating margin in the range of 27.5% to 28.0%.
- Diluted non-GAAP net income per share in the range of $6.26 to $6.39, using 350 million to 354 million shares outstanding.
- Adjusted free cash flow margin in the range of 37% to 38%.
So more of the same. Next Gen ARR continues to come down slowly but still is a very nice 40% growth. I listened to Nakesh on Jim Cramer last night and he stated that the fire walled business continues to grow in the low single digits and that the platformization that they have been pushing is really taking hold.
It appears the markets got what they expected and have responded with a big yawn. No real move in either direction.
Overall a great company in a strong industry that is both growing and producing very nice cash flow. What’s not to like?
Here is a link to the release:
https://investors.paloaltonetworks.com/news-releases/news-release-details/palo-alto-networks-reports-fiscal-first-quarter-2025-financial
Here is a link to the very nice presentation worth looking through:
https://investors.paloaltonetworks.com/static-files/618ab7cd-906c-4d4a-893c-918245e3cd1a
Randy
Long PANW and PANW Tickerguide