Palo Alto Networks reported a strong fiscal second quarter for 2024 with a 19% year-over-year increase in revenue to $2.0 billion. 

• Fiscal second quarter revenue grew 19% year over year to $2.0 billion
• Remaining performance obligation grew 22% year over year to $10.8 billion
• Non-GAAP operating margin grew 580 bps year over year to 29%

The company’s remaining performance obligation also grew by 22% to $10.8 billion, and its non-GAAP operating margin increased by 580 bps to 29%. The results for the quarter were driven by significant growth in net income, with a GAAP net income of $1.7 billion compared to $0.1 billion in the same quarter last year.

Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.

For the fiscal third quarter 2024, we expect:

• Total billings in the range of $2.30 billion to $2.35 billion, representing year-over-year growth of between 2% and 4%.
• Total revenue in the range of $1.95 billion to $1.98 billion, representing year-over-year growth of between 13% and 15%.
• Diluted non-GAAP net income per share in the range of $1.24 to $1.26, using 347 million to 351 million shares outstanding.

For the fiscal year 2024, we are updating guidance and expect:

• Total billings in the range of $10.10 billion to $10.20 billion, representing year-over-year growth of between 10% and 11%.
• Total revenue in the range of $7.95 billion to $8.00 billion, representing year-over-year growth of between 15% and 16%.
• Non-GAAP operating margin in the range of 26.5% to 27.0%.
• Diluted non-GAAP net income per share in the range of $5.45 to $5.55, using 345 million to 347 million shares outstanding.
• Adjusted free cash flow margin in the range of 38.0% to 39.0%.

PANW is down 13.37% at 317.93 in afterhours trading.