Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City on March 25, 2025.
Palo Alto Networks reported better-than-expected quarterly results and issued upbeat guidance for the current period. The cybersecurity software vendor said Nir Zuk, who founded the company in 2005, is retiring from his role as chief technology officer.
The stock rose about 6% in extended trading.
Here's how the company did compared to LSEG estimates:
Earnings: 95 cents adjusted vs. 88 cents expected
Revenue: $2.54 billion vs. $2.5 billion expected.
Revenue in the fiscal fourth quarter rose 16% from about $2.2 billion last year, the company said in a statement. Net income fell to about $254 million, or 36 cents per share, from about $358 million, or 51 cents per share, in the year-ago period.
The company also issued upbeat guidance for the fiscal first quarter. Earnings per share will be between 88 cents and 90 cents, Palo Alto said, topping an 85-cents estimate from StreetAccount.
For the full year, Palo Alto said revenue will range from $10.48 billion to $10.53 billion on adjusted earnings of $3.75 to $3.85 per share. Both estimates exceeded Wall Street's projections.
Palo Alto said that for the fiscal first quarter, remaining purchase obligations, which tracks backlog, will range between $15.4 billion and $15.5 billion, surpassing a $15.07 billion estimate.
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