NYSE$PANW

Palo Alto Networks · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a strong Q3 2023 with revenue growth and positive GAAP net income.

Palo Alto Networks announced its fiscal third quarter 2023 financial results, with total revenue growing 24% year over year to $1.7 billion. The company achieved GAAP net income of $107.8 million, marking the fourth consecutive quarter of positive GAAP net income.

  • Fiscal third quarter revenue grew 24% year over year to $1.7 billion.
  • Fiscal third quarter billings grew 26% year over year to $2.3 billion.
  • Remaining performance obligation grew 35% year over year to $9.2 billion.
  • Achieved fourth consecutive GAAP net income positive quarter.

Headline financials

Total Revenue

$1.72B

Previous: $1.39B+24.1%
EPS (adj)

$1.10

Previous: $0.60+83.3%
Net Income

$108M

Previous: -$73.2M+247.3%
Operating Income

$78.7M

Previous: -$47.6M+265.3%
Gross Profit

$1.25B

Previous: $946M+31.7%
Cash & Equivalents

$1.99B

Previous: $2.42B-17.6%
Total Assets

$14.2B

Previous: $11.1B+27.7%
Stock-Based Comp

$271M

Previous: $247M+9.6%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.72B

Q3 2023+24.1%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $1.72B total across 2 segments · Q3 2023

  • Subscription and Support
    $1.33B+28.7%
  • Product
    $388M+10.4%

Forward guidance

Palo Alto Networks provided guidance for the fiscal fourth quarter 2023, expecting total revenue in the range of $1.937 billion to $1.967 billion, representing year-over-year growth of between 25% and 27%, and diluted non-GAAP net income per share in the range of $1.26 to $1.30.

Tailwinds

  • Total billings in the range of $3.15 billion to $3.20 billion, representing year-over-year growth of between 17% and 19%.
  • Total revenue in the range of $1.937 billion to $1.967 billion, representing year-over-year growth of between 25% and 27%.
  • Diluted non-GAAP net income per share in the range of $1.26 to $1.30, using 326 million to 332 million shares outstanding.
  • Total billings in the range of $9.18 billion to $9.23 billion, representing year-over-year growth of between 23% and 24% for fiscal year 2023.
  • Total revenue in the range of $6.88 billion to $6.91 billion, representing year-over-year growth of between 25% and 26% for fiscal year 2023.

Headwinds

  • Guidance excludes share-based compensation-related charges.
  • Guidance excludes acquisition-related costs.
  • Guidance excludes amortization expense of acquired intangible assets.
  • Guidance excludes litigation-related charges, including legal settlements.
  • Guidance excludes restructuring and other costs.

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 Q3 2023

Historical avgQ3 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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