Palo Alto Networks (PANW) Revenue Q2 2023

Nikesh Arora of the United States played on the 1st hole during the third round of the Alfred Dunhill Links Championship at the Old Course in St Andrews, Scotland on October 2, 2021.

David Cannon | David Cannon Collection | Getty Images

Palo Alto Networks Stocks rose 7% in extended trading on Tuesday after the security hardware and software maker reported earnings for the second quarter of the fiscal year that beat Wall Street estimates.

Here’s how the company did it:

  • Earnings: Analysts are expecting 78 cents per share, compared to an adjusted $1.05 per share, according to Refinitiv.
  • Earnings: Analysts expected $1.65 billion, according to Refinitiv, compared to $1.66 billion.

The company’s sales grew 26% year-on-year in the quarter ending Jan. 31. statementNet income was $84.2 million, or 25 cents per share, compared with a loss of $93.5 million in the year-ago quarter.

“Our focus on driving profitable growth is reflected in our second quarter results.” As we continue to focus on efficiency, we are raising our cash flow margin and operating margin targets.” Headcount growth has slowed, Golechha said on a conference call with analysts.

Palo Alto Networks posted three consecutive quarters of profit after a decade of losses. The company has exceeded its revenue target set for 2021 by three years, CEO Nikesh Arora said on a conference call.

“We are confident that we now meet the criteria to be included in the S&P 500,” said Golechha.

The company called for adjusted earnings in the third quarter of the fiscal year of $1.695 billion to $1.725 billion at 90 cents to 94 cents per share. Analysts surveyed by Refinitiv had expected adjusted earnings per share of 78 cents on earnings of $1.74 billion.

Management has boosted earnings guidance for fiscal 2023. Asked for $3.97 to $4.03 per adjusted share. in November Guidance for adjusted earnings per share was $3.37 to $3.44. An analyst surveyed by Refinitiv had expected adjusted earnings per share to be $3.42. The company maintained earnings guidance. Golechha said he expects earnings in the third and fourth quarters of the fiscal year.

Customers have postponed or canceled projects, but for the most part things are going well, Arora said. The company has shifted some of its sales forecasts from the third quarter to the fourth quarter, he said.

He said executives continue to see evidence that the cybersecurity market is resilient as other sectors of the economy falter as the central bank raises interest rates.

During the quarter, the company Acquisition Startup Cider Security has spent about $195 million focused on software supply chain and application security. This is the latest deal in a series that has helped Palo Alto Networks continue to grow revenue under Arora for nearly five years, costing more than $3 billion to date.

Despite the after-hours move, Palo Alto Networks stock is up 20% so far this year, outperforming the S&P 500 Index, which has risen 4% over the same period.

clock: Palo Alto Networks’ Nikesh Arora says it’s important to look at overall macro sentiment. Palo Alto Networks (PANW) Revenue Q2 2023

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