NYSE$PANW

Palo Alto Networks · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported fiscal third quarter 2024 financial results with revenue growth and increased remaining performance obligation.

Palo Alto Networks announced its fiscal third quarter 2024 results, with total revenue growing 15% year over year to $2.0 billion. GAAP net income was $278.8 million, or $0.79 per diluted share, while non-GAAP net income was $454.9 million, or $1.32 per diluted share. The company's remaining performance obligation grew 23% year over year to $11.3 billion.

  • Fiscal third quarter revenue grew 15% year over year to $2.0 billion.
  • Remaining performance obligation grew 23% year over year to $11.3 billion.
  • GAAP net income for the fiscal third quarter 2024 was $278.8 million, or $0.79 per diluted share.
  • Non-GAAP net income for the fiscal third quarter 2024 was $454.9 million, or $1.32 per diluted share.

Headline financials

Total Revenue

$1.98B

Previous: $1.72B+15.3%
EPS

$0.79

Previous: $1.10-28.2%
Next-Gen Security ARR

$3.8B

No prior period
Remaining Performance Obligation

$11.3B

No prior period
Net Income

$279M

Previous: $108M+158.6%
Operating Income

$177M

Previous: $78.7M+124.5%
Gross Profit

$1.47B

Previous: $1.25B+18.1%
Cash & Equivalents

$1.37B

Previous: $1.99B-31.1%
Total Assets

$17.9B

Previous: $14.2B+26.5%
R&D Expense

$457M

No prior period
Stock-Based Comp

$264M

Previous: $271M-2.8%

Revenue & EPS history

Palo Alto Networks · Revenue · Quarterly

$1.98B

Q3 2024+15.3%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Palo Alto Networks · $341M total across 1 segment · Q1 2024

  • Product
    $341M+3.4%

Forward guidance

For the fiscal fourth quarter 2024, Palo Alto Networks expects total revenue in the range of $2.15 billion to $2.17 billion, representing year-over-year growth of between 10% and 11%, and diluted non-GAAP net income per share in the range of $1.40 to $1.42.

Tailwinds

  • Total billings in the range of $3.43 billion to $3.48 billion, representing year-over-year growth of between 9% and 10%.
  • Total revenue in the range of $2.15 billion to $2.17 billion, representing year-over-year growth of between 10% and 11%.
  • Diluted non-GAAP net income per share in the range of $1.40 to $1.42, using 345 million to 347 million shares outstanding.
  • Total revenue in the range of $7.99 billion to $8.01 billion, representing year-over-year growth of 16%.
  • Adjusted free cash flow margin in the range of 38.5% to 39.0%.

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 2024

Historical avgQ3 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

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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