NYSE$PANW
Palo Alto Networks · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Palo Alto Networks' financial performance improved with revenue growth and a significant net income increase, driven by strategic platformization and AI leadership.
Palo Alto Networks reported a strong fiscal second quarter in 2024, with revenue increasing by 19% year-over-year to $2.0 billion. GAAP net income saw a substantial rise to $1.7 billion, or $4.89 per diluted share, which included a $1.5 billion net tax benefit. The company is focusing on accelerated platformization, consolidation strategy, and AI leadership.
- Fiscal second quarter revenue increased by 19% year-over-year reaching $2.0 billion.
- Remaining performance obligation (RPO) grew by 22% year-over-year, totaling $10.8 billion.
- GAAP net income was $1.7 billion, or $4.89 per diluted share, including a $1.5 billion net tax benefit.
- Non-GAAP operating margin expanded by 580 bps year-over-year to 29%.
Headline financials
Revenue & EPS history
Palo Alto Networks · Revenue · Quarterly
$1.98B
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 financial guidance for the fiscal third quarter 2024 and updated guidance for the full fiscal year 2024.
Tailwinds
- Total revenue for Q3 2024 is expected to be 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 for Q3 2024 is projected to be in the range of $1.24 to $1.26.
- Total revenue for FY 2024 is expected to be 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 for FY 2024 is expected to be in the range of 26.5% to 27.0%.
- Diluted non-GAAP net income per share for FY 2024 is projected to be in the range of $5.45 to $5.55.
Headwinds
- Total billings for Q3 2024 are expected to be in the range of $2.30 billion to $2.35 billion, representing year-over-year growth of between 2% and 4%.
- Total billings for FY 2024 are expected to be in the range of $10.10 billion to $10.20 billion, representing year-over-year growth of between 10% and 11%.
- The guidance is based on current market conditions and expectations, which are subject to change.
- The company has not reconciled diluted non-GAAP net income per share guidance to GAAP net income per diluted share.
- The company has not reconciled adjusted free cash flow margin guidance to GAAP net cash from operating activities.
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 Q2 2024
+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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