Palo Alto Networks Reports Strong Q3 2025 Growth

Palo Alto Networks ( (PANW) ) has released its Q3 earnings. Here is a breakdown of the information Palo Alto Networks presented to its investors.

Palo Alto Networks, a leader in the cybersecurity sector, is renowned for its AI-powered security solutions that protect digital environments globally. In its fiscal third quarter of 2025, the company reported a 15% increase in revenue, reaching $2.3 billion, and a significant 34% growth in Next-Generation Security ARR to $5.1 billion. The company’s remaining performance obligation also saw a 19% increase, totaling $13.5 billion.

Key financial highlights include a GAAP net income of $0.3 billion, or $0.37 per diluted share, and a non-GAAP net income of $0.6 billion, or $0.80 per diluted share. The company attributes its strong performance to its platformization strategy and the milestone achievement of surpassing $5 billion in Next-Gen Security ARR, positioning itself as a leading consolidator in cybersecurity.

Looking ahead, Palo Alto Networks projects continued growth with expectations for the fiscal fourth quarter of 2025, forecasting Next-Generation Security ARR between $5.52 billion and $5.57 billion, and total revenue ranging from $2.49 billion to $2.51 billion. The company also anticipates a diluted non-GAAP net income per share between $0.87 and $0.89.

As the fiscal year 2025 progresses, Palo Alto Networks remains focused on executing its strategic goals, with an outlook for total revenue between $9.17 billion and $9.19 billion and a non-GAAP operating margin of 28.2% to 28.5%. The company continues to leverage its innovation in Next-Generation Security to drive its overall revenue growth.