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Palo Alto Networks reported better revenue and profit than expected for the first quarter of fiscal 2025.
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The cybersecurity company has raised its expectations for full-year revenue and adjusted earnings per share (EPS).
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Palo Alto Networks also said it will undergo a 2-for-1 stock split next month.
Palo Alto Networks (PANW) posted better-than-expected results for the first quarter of fiscal 2025 and announced a 2-for-1 stock split after the call Wednesday.
The cybersecurity company reported $2.14 billion gain for the quarter, up from $1.88 billion a year ago and just above $2.12 billion Analyst consensus estimate curated by Visible Alpha. Gain of $350.7 million rose more than 80% and easily surpassed the expected $272.1 million.
General Manager (CEO) Nikesh Arora said the company is noticing that its customers are realizing this its “platformization” strategy of consolidating and bundling services to drive sales is “the game changer that will solve and better enable security AI outcomes.”
Wedbush analysts, while maintaining an “outperform” rating and a $400 price target, say they believe the company’s “platformization efforts are only just beginning to pay off as it becomes a more stable pipeline of platformization deals, with cloud penetration still acting as a key driver. moving forward.”
Palo Alto Networks also announced one stock split that makes it the latest company to do so this year, joining the like Walmart (WMT), Chipotle Mexican Grill (CMG), and Nvidia (NVDA). Companies carry out stock splits for a variety of reasons, including making their share price more accessible to a wider range of investors and increasing trading activity on their shares.
Palo Alto Networks will soon double its existing share count with a 2-for-1 split, meaning shareholders of record on December 12 will receive an additional share for each share they own after the market closes on December 13. of shares and the halved price will take effect on December 16.
The company also raised its full-year guidance for fiscal 2025, forecasting revenue between $9.12 billion and $9.17 billion, up from $9.10 billion to $9.15 billion previously. Amended earnings per share (EPS) are seen between $6.26 and $6.39, up from $6.18 to $6.31.
Palo Alto shares recently rose 1.4% to $398.46 on Thursday, about 35% higher than where they started the year.