Palo Alto Networks Forecasts Q2 Revenues of $2.57–2.59B and Projects 93¢ EPS
Management expects fiscal Q2 revenues of $2.57–2.59 billion, implying 14–15% year-over-year growth, with non-GAAP EPS projected at $0.93, up 14.8%. In Q1, NGS annual recurring revenue rose 29% to $5.85 billion, buoyed by an $85 million XSIAM deal and a $33 million SASE contract, offset by macro headwinds.
1. Fiscal Q2 Guidance
Palo Alto Networks projects fiscal Q2 revenues of $2.57–2.59 billion, representing 14–15% year-over-year growth, and anticipates non-GAAP earnings of $0.93 per share, up 14.8% from the prior year.
2. Platform ARR Growth
In Q1, Next-Generation Security annual recurring revenue grew 29% year-over-year to $5.85 billion, driven by expanding adoption of AI-powered XSIAM, SASE, and software firewall offerings as part of the company’s platformization strategy.
3. Key Enterprise Deals
The company secured an $85 million XSIAM agreement with a U.S. telecom operator—its largest XSIAM deal—and closed a $33 million SASE contract with a federal agency, highlighting escalating demand for consolidated security solutions among large enterprises.
4. Valuation and Risks
Shares have declined 19.6% over the past year versus sector gains, and the forward price-to-sales ratio stands at 10.22×, above peers; near-term risks include softening IT spending and sustained high interest rates.