Investment Thesis - Palo Alto Networks reported strong earnings, with a revenue of $2.2 billion, a 13% year-over-year increase, and a non-GAAP EPS of $1.51, beating consensus estimates [1] - The company is experiencing significant growth in its Next-Generation Security (NGS) Annual Recurring Revenue (ARR), which grew 43% year-over-year, moving towards a target of $15 billion by 2030 [1] - The recent outage of CrowdStrike is expected to create market share opportunities for Palo Alto in the extended detection and response (XDR) market [1] Guidance - Palo Alto is guiding for next quarter's revenue between $2.10 billion and $2.13 billion, reflecting a 12% to 13% year-over-year increase, and non-GAAP EPS between $1.47 and $1.49 [3] - For FY2025, NGS ARR is expected to be between $5.42 billion and $5.47 billion, a 28% to 30% increase year-over-year, with total revenue guidance of $9.10 billion to $9.15 billion, a 13% to 14% increase [3] Financial Performance - The company’s RPO (Remaining Performance Obligations) increased by 20% year-over-year, indicating strong future revenue visibility [5] - Operating margins improved by 320 basis points this quarter and over 800 basis points since FY2021, with a free cash flow margin of 39% [6] AI Integration - Palo Alto has launched a suite of AI security offerings, generating over $200 million in AI ARR, with XSIAM bookings doubling to $500 million in FY2024 [7] - The median time to remediate security issues has decreased to under ten minutes for over 50% of customers, showcasing the effectiveness of their AI solutions [7] Market Dynamics - The recent CrowdStrike bug incident has led to increased interest in Palo Alto's services, potentially boosting customer acquisition in the XDR market [8] - Palo Alto's proactive approach to updates and customer control over the update process positions it favorably against competitors [8]

The cybersecurity leader's valuations are getting too hot to handle.Palo Alto Networks (PANW 0.36%) posted its latest earnings report on Aug. 19. For the fourth quarter of fiscal 2024, which ended on July 31, the cybersecurity leader's revenue rose 12% year over year to $2.19 billion and topped analysts' estimates by $40 million. Its adjusted earnings per share (EPS) grew 5% to $1.51 and beat the consensus forecast by $0.10.Palo Alto's stock surged higher after that earnings beat and now trades just a few d ...

How the stock has managed to rebound.What a difference a few months can make. In February, Palo Alto Networks (PANW -0.55%) saw its stock tank after the cybersecurity company said it was seeing "spending fatigue" among its customers, and it embarked on a bold new strategy.Weeks later on its earnings call, rival CrowdStrike Holdings (CRWD 0.84%) took at jab at Palo Alto's large collection of single-problem solutions, saying: "Multi-platform hardware vendors evangelized their stitched-together patchwork of po ...

SANTA CLARA, Calif., Aug. 23, 2024 /PRNewswire/ -- Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today that members of its management team will be presenting at the following financial community events:Citi 2024 Global TMT ConferenceWednesday, September 4, 20249:10 a.m. EDTGoldman Sachs Communacopia & TechnologyMonday, September 9, 202410:10 a.m. PDTAdditional information about upcoming investor event participation and a live audio webcast of each presentation will be accessi ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Palo Alto Networks TodayPANWPalo Alto Networks$357.32 -2.43 (-0.68%) 52-Week Range$224.64▼$380.84P/E Ratio51.94Price Target$363.49Add to WatchlistOperational quality and business trends are why Palo Alto Network's NASDAQ: PANW stock price will soon hit a new all-time high. The latest report shows that business strength persists despite the company’s leaning toward free and reduced services intended to boost total business. That plan appears to be working, and it is compounded by the focus on platformization ...

Jetta Productions Inc I published my 'Buy' thesis for Palo Alto Networks (NASDAQ:PANW) (NEOE:PANW:CA) in May 2024, highlighting their strategy of platformization and long-term growth potentials. Since then, the stock price has surged by more than 19%. Palo Alto Networks released its Q4 result on August 19th with 12% year-over-year growth in revenue, exceeding the market expectations. The company achieved robust growth in Next Generation Security (NGS) portfolio. I maintain a "Buy" rating with a fair value o ...

Key TakeawaysThe S&P 500 slipped 0.2% on Tuesday, Aug. 20, ending a streak of eight consecutive positive trading days for the benchmark index.Shares of medical device makers Insulet and DexCom moved lower as a popular drug from Eli Lilly showed promise in reducing diabetes risk.Palo Alto Networks shares took off after the cybersecurity firm beat quarterly sales and profit estimates. Major U.S. equities indexes finished with minor losses on Tuesday. The S&P 500 fell 0.2%, ending a streak of eight straight wi ...

Wall Street loves Palo Alto stock today. But should you?Cybersecurity specialist Palo Alto Networks' (PANW 8.65%) stock soared 8% through 11:25 a.m. ET Tuesday after the company beat analyst forecasts for sales and earnings last night.Heading into its report for the fiscal fourth quarter of 2024, ended July 31, analysts forecast Palo Alto would earn $1.41 per share in "adjusted" profit on sales of $2.16 billion. Instead, Palo Alto reported $1.51 per share, and sales were $2.19 billion. Palo Alto also guided ...

Shares of Palo Alto Networks Inc PANW were climbing in early trading on Tuesday.The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Check out other analyst stock ratings.KeyBanc: Palo Alto Networks reported its fiscal fourth-quarter billings at $3,502 million. This represents 11% year-on-year growth, beating consensus of $3.45 billion, Heath said in a note. Revenues came in at $2.19 billion, topping expectations of $2,161 million, he added.Management's RPO ...