Nikesh Arora, CEO of Palo Alto Networks, looks connected during the closing doorbell astatine the Nasdaq Market successful New York City connected March 25, 2025.
Jeenah Moon | Reuters
Palo Alto Networks reported better-than-expected quarterly results and issued upbeat guidance for the existent period. The cybersecurity bundle vendor said Nir Zuk, who founded the institution successful 2005, is retiring from his relation arsenic main exertion officer.
The banal roseate astir 5% successful extended trading.
Here's however the institution did compared to LSEG estimates:
- Earnings: 95 cents adjusted vs. 88 cents expected
- Revenue: $2.54 cardinal vs. $2.5 cardinal expected.
Revenue successful the fiscal 4th fourth roseate 16% from astir $2.2 cardinal past year, the institution said successful a statement. Net income fell to astir $254 million, oregon 36 cents per share, from astir $358 million, oregon 51 cents per share, successful the year-ago period.
The institution besides issued upbeat guidance for the fiscal archetypal quarter. Earnings per stock volition beryllium betwixt 88 cents and 90 cents, Palo Alto said, topping an 85-cents estimation from StreetAccount.
For the afloat year, Palo Alto said gross volition scope from $10.48 cardinal to $10.53 cardinal connected adjusted net of $3.75 to $3.85 per share. Both estimates exceeded Wall Street's projections.
Palo Alto said that for the fiscal archetypal quarter, remaining acquisition obligations, which tracks backlog, volition scope betwixt $15.4 cardinal and $15.5 billion, surpassing a $15.07 cardinal estimate.
Last month, the institution announced plans to buy Israeli individuality information supplier CyberArk for $25 billion. It's the largest woody Palo Alto has made since its founding, and astir ambitious successful an acquiring spree that ramped up aft CEO Nikesh Arora took the helm of the institution successful 2018.
Shares sold disconnected sharply aft the quality broke and person yet to retrieve erstwhile highs. The banal is down astir 3% this twelvemonth arsenic of Monday's close.
"We look for large products, a squad that tin execute successful the product, and we fto them tally it," Arora told CNBC pursuing the announcement. "This is going to beryllium a antithetic challenge, but we've done good 24 times, truthful I'm beauteous assured that our squad tin grip this."
Lee Klarich, the company's merchandise chief, volition regenerate Zuk arsenic CTO and capable his presumption connected the board.
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