Palo Alto Networks | 8-K: FY2025 Q3 Revenue Beats Estimate at USD 2.289 B

LB filings
2025.05.21 08:17

Revenue: As of FY2025 Q3, the actual value is USD 2.289 B, beating the estimate of USD 2.28 B.

EPS: As of FY2025 Q3, the actual value is USD 0.37, beating the estimate of USD 0.3664.

EBIT: As of FY2025 Q3, the actual value is USD 310.5 M.

Segment Revenue

  • Total Revenue: Fiscal third quarter 2025 revenue grew 15% year over year to $2.3 billion, compared to $2.0 billion in the fiscal third quarter 2024.
  • Product Revenue: $452.7 million for the fiscal third quarter 2025, compared to $391.0 million for the fiscal third quarter 2024.
  • Subscription and Support Revenue: $1,836.3 million for the fiscal third quarter 2025, compared to $1,593.8 million for the fiscal third quarter 2024.

Operational Metrics

  • GAAP Net Income: $0.3 billion for the fiscal third quarter 2025, or $0.37 per diluted share, compared to $0.3 billion, or $0.39 per diluted share, for the fiscal third quarter 2024.
  • Non-GAAP Net Income: $0.6 billion for the fiscal third quarter 2025, or $0.80 per diluted share, compared to $0.5 billion, or $0.66 per diluted share, for the fiscal third quarter 2024.
  • Operating Income: $218.8 million for the fiscal third quarter 2025, compared to $176.7 million for the fiscal third quarter 2024.
  • Non-GAAP Operating Income: $627.1 million for the fiscal third quarter 2025, compared to $507.9 million for the fiscal third quarter 2024.
  • Non-GAAP Operating Margin: 27.4% for the fiscal third quarter 2025, compared to 25.6% for the fiscal third quarter 2024.

Cash Flow

  • Cash and Cash Equivalents: $2,383.4 million as of April 30, 2025, compared to $1,535.2 million as of July 31, 2024.

Unique Metrics

  • Next-Generation Security ARR: Grew 34% year over year to $5.1 billion for the fiscal third quarter 2025.
  • Remaining Performance Obligation: Grew 19% year over year to $13.5 billion for the fiscal third quarter 2025.

Outlook / Guidance

  • For the fiscal fourth quarter 2025, Palo Alto Networks expects Next-Generation Security ARR of $5.52 billion to $5.57 billion, total revenue in the range of $2.49 billion to $2.51 billion, and diluted non-GAAP net income per share in the range of $0.87 to $0.89.
  • For the fiscal year 2025, the company expects total revenue in the range of $9.17 billion to $9.19 billion, non-GAAP operating margin in the range of 28.2% to 28.5%, and adjusted free cash flow margin in the range of 37.5% to 38.0%.
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