From CNBC: 2025-02-13 19:57:43

Palo Alto Networks stock fell after a strong quarter with revenue up 14% to $2.26 billion, beating estimates. Adjusted EPS rose to 81 cents, exceeding the consensus. The company is focused on platformization strategy, adding 75 new platform clients and aiming for 2,500 to 3,500 by 2030. Big wins included deals with a bank and a U.S. municipality. CEO Nikesh Arora is optimistic about cybersecurity spending and AI trends driving demand for security. However, stock dropped over 5.5% in after-hours trading due to higher consensus estimates and in-line guidance for the third quarter. Revenue outlook increased slightly for full-year fiscal 2025, with expectations of reasonable growth in cybersecurity spending. Palo Alto Networks continues to push platformization strategy to drive growth and security outcomes. Management believes RPO and NGS ARR metrics are key to showcase growth and value to investors. The company expects total revenue of $2.26-$2.29 billion for the third quarter and $9.14-$9.19 billion for full-year fiscal 2025. Non-GAAP EPS is forecasted to be $0.76-$0.77 for the third quarter and $3.18-$3.24 for the full year. Adjusted free cash flow margin is expected to be 37%-38%. Palo Alto Networks remains focused on driving growth through its platformization strategy and expansion of cybersecurity offerings.



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