Palo Alto Networks Raises Full-Year Revenue Forecast to $11.3B After Q2 Beat
Palo Alto Networks reported fiscal second-quarter revenue of $2.6 billion, up 15% year-over-year, and GAAP earnings of $0.61 per share, surpassing estimates by 32%. The company raised its full-year revenue guidance midpoint to $11.3 billion and expects third-quarter sales of about $2.94 billion, forecasting 28% to 29% growth.
1. Fiscal Second-Quarter Results
Palo Alto Networks posted revenue of $2.6 billion, a 15% increase year-over-year. GAAP net income was $432 million, or $0.61 per share, representing a 32% beat versus estimates and prior-year levels.
2. Updated Guidance
The company lifted its full-year revenue guidance midpoint to $11.3 billion from $10.52 billion, marking a 7.4% upward revision. For the fiscal third quarter, it forecasts revenue of $2.941 billion to $2.945 billion, or 28% to 29% year-over-year growth.
3. Growth Drivers and Outlook
Next-Generation Security ARR grew 33% to $6.3 billion and remaining performance obligations rose 23% to $16.0 billion, reflecting strong subscription demand. Non-GAAP operating margin exceeded 30%, driven by platformization efforts and accelerating AI security adoption.