NYSE$PANW
Palo Alto Networks · Q1 2025 earnings
Q1 2025 earnings · · Investor relations
Briefing
Palo Alto Networks' financial performance was reinforced by its differentiated platformization strategy
Palo Alto Networks reported a strong fiscal first quarter 2025, with revenue reaching $2.1 billion, a 14% increase year-over-year. The company's Next-Generation Security ARR grew by 40% to $4.5 billion, and remaining performance obligation increased by 20% to $12.6 billion. GAAP net income was $350.7 million, or $0.99 per diluted share, while non-GAAP net income was $544.9 million, or $1.56 per diluted share.
- Total revenue for the fiscal first quarter 2025 grew 14% year over year to $2.1 billion.
- GAAP net income for the fiscal first quarter 2025 was $350.7 million, or $0.99 per diluted share.
- 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.
Headline financials
Revenue & EPS history
Palo Alto Networks · Revenue · Quarterly
$2.14B
Revenue by segment
Palo Alto Networks · $341M total across 1 segment · Q1 2024
- Product$341M+3.4%100.0%
Forward guidance
Palo Alto Networks provided guidance for the fiscal second quarter 2025 and fiscal year 2025, including Next-Generation Security ARR, remaining performance obligation, total revenue, and diluted non-GAAP net income per share.
Tailwinds
- 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.
- Next-Generation Security ARR of $5.52 billion to $5.57 billion, representing year-over-year growth of between 31% and 32% for fiscal year 2025.
Headwinds
- Remaining performance obligation of $15.2 billion to $15.3 billion, representing year-over-year growth of between 19% and 20% for fiscal year 2025.
- Total revenue in the range of $9.12 billion to $9.17 billion, representing year-over-year growth of 14% for fiscal year 2025.
- Non-GAAP operating margin in the range of 27.5% to 28.0% for fiscal year 2025.
- Diluted non-GAAP net income per share in the range of $6.26 to $6.39, using 350 million to 354 million shares outstanding for fiscal year 2025.
- Adjusted free cash flow margin in the range of 37% to 38% for fiscal year 2025.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2025
+1.4%
Avg return
Earnings day
+1.2%
Avg return
5 days after
+1.7%
Avg return
30 days after
58%
32 / 55 earnings
Positive
+20.2%
Q4 2021
Best reaction
-28.5%
Q2 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | -0.9% | -11.8% | -0.3% | |
| Q1 2026 | -4.9% | -6.8% | -6.5% | |
| Q4 2025 | -1.3% | +5.5% | +16.8% | |
| Q3 2025 | -6.9% | -4.0% | +2.4% | |
| Q2 2025 | -0.9% | +1.6% | -9.7% | |
| Q1 2025 | +2.5% | -0.4% | -3.7% | |
| Q4 2024 | +10.1% | +5.0% | -1.3% | |
| Q3 2024 | -2.0% | +1.2% | -0.3% | |
| Q2 2024 | -28.5% | -23.0% | -21.5% | |
| Q1 2024 | -7.2% | -0.2% | +17.7% | |
| Q4 2023 | +16.0% | +13.5% | +15.7% | |
| Q3 2023 | +6.4% | +10.2% | +29.7% | |
| Q2 2023 | +10.9% | +10.2% | +14.5% | |
| Q1 2023 | +5.3% | +7.9% | -5.1% | |
| Q4 2022 | +10.9% | +9.2% | -0.0% | |
| Q3 2022 | +9.1% | +8.8% | +8.4% | |
| Q2 2022 | -0.9% | +18.2% | +29.0% | |
| Q1 2022 | +3.2% | +3.7% | +3.2% | |
| Q4 2021 | +20.2% | +25.5% | +29.5% | |
| Q3 2021 | +8.0% | +8.8% | +10.8% | |
| Q2 2021 | -4.8% | -9.7% | -19.1% | |
| Q1 2021 | +13.5% | +12.9% | +25.0% | |
| Q4 2020 | -3.1% | -5.4% | -11.2% | |
| Q3 2020 | +1.5% | -1.4% | -1.6% | |
| Q2 2020 | -18.9% | -24.0% | -31.7% | |
| Q1 2020 | -10.7% | -8.0% | -6.1% | |
| Q4 2019 | +6.5% | +6.1% | +5.7% | |
| Q3 2019 | -4.8% | -8.3% | -5.0% | |
| Q2 2019 | +9.0% | +5.0% | +1.9% | |
| Q1 2019 | -2.0% | +0.4% | +4.3% | |
| Q4 2018 | +2.4% | +5.4% | -2.9% | |
| Q3 2018 | -2.5% | -4.7% | +0.2% | |
| Q2 2018 | +4.6% | +6.8% | +6.9% | |
| Q1 2018 | +4.7% | +5.5% | +3.3% | |
| Q4 2017 | +10.4% | +8.5% | +8.5% | |
| Q3 2017 | +18.8% | +20.1% | +14.4% | |
| Q2 2017 | -25.2% | -24.9% | -26.3% | |
| Q1 2017 | -13.4% | -12.3% | -21.8% | |
| Q4 2016 | -5.9% | +2.6% | +10.3% | |
| Q3 2016 | -10.9% | -10.5% | -16.4% | |
| Q2 2016 | +15.4% | — | — | |
| Q1 2016 | +6.9% | — | — | |
| Q4 2015 | +6.6% | — | — | |
| Q3 2015 | +1.5% | — | — | |
| Q2 2015 | +4.7% | — | — | |
| Q1 2015 | +10.4% | — | — | |
| Q4 2014 | +9.7% | — | — | |
| Q3 2014 | +5.1% | — | — | |
| Q2 2014 | +1.8% | — | — | |
| Q1 2014 | +9.3% | — | — | |
| Q4 2013 | +7.0% | — | — | |
| Q3 2013 | -11.4% | — | — | |
| Q2 2013 | +1.1% | — | — | |
| Q1 2013 | -1.5% | — | — | |
| Q4 2012 | -5.9% | — | — | |
| Q3 2012 | — | — | — | |
| Q2 2011 | — | — | — | |
| Q1 2011 | — | — | — | |
| Q4 2011 | — | — | — | |
| Q3 2011 | — | — | — |
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