The earnings call presented a positive outlook with strong revenue growth, significant progress in platformization, and robust performance across various business segments. However, there were concerns regarding gross margin pressures and the impact of deferred payments on cash flow visibility.

Company Guidance

During the conference call for Palo Alto Networks, Inc.'s second quarter of fiscal year 2025, the company provided updated guidance reflecting strong financial performance and strategic advancements. The company reported total revenue of $2.26 billion, a 14% year-over-year increase, with product revenue growing by 8% and services revenue by 16%, supported by a substantial 20% rise in subscription revenue. The company highlighted a robust performance in its Next-Generation Security (NGS) Annual Recurring Revenue (ARR), which grew by 37% to reach $4.78 billion, driven by strength across advanced subscriptions, SaaS, and Cortex. Operating margins surpassed internal targets, prompting an increase in full-year operating margin guidance to a range of 28% to 28.5%. The company also projected diluted non-GAAP EPS for the fiscal year to be between $3.18 and $3.24, marking a 12% to 14% increase. Free cash flow generation remained strong, with expectations of an adjusted free cash flow margin between 37% and 38% for the year. Looking forward, Palo Alto Networks, Inc. anticipates revenue for fiscal year 2025 to range between $9.14 billion and $9.19 billion, reflecting a 14% increase, while continuing to capitalize on its platformization strategy and AI-driven initiatives to maintain momentum and drive future growth.

Strong Revenue Growth

Total revenue for Q2 2025 was $2.26 billion, growing 14% year-over-year, above the high end of guidance.

Impressive Platformization Progress

Approximately 75 new platformizations in Q2, up from 45 a year ago, with over 1,150 total platformizations among the top 5,000 customers.

NGS ARR Growth

NGS ARR grew 37% to $4.78 billion, driven by strong performance across advanced subscriptions, SaaS, and Cortex.

Large Deal Success

74 accounts with transactions over $500,000, up 25% year over year, and 32 accounts with transactions over $10 million, up over 50%.

Global Expansion

Double-digit revenue growth across all theaters: Americas up 13%, EMEA up 18%, and JPAC up 17%.

Innovation in AI and Cloud Security

Introduction of Cortex Cloud, merging Prisma Cloud with CDR capabilities, offering enhanced AI-powered cloud security solutions.

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Palo Alto Networks (PANW) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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PANW Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 21, 2025	2025 (Q3)	0.77 / -	0.66	―	―	―
Feb 13, 2025	2025 (Q2)	0.78 / 0.81	0.73	10.96% (+0.08)
Nov 20, 2024	2025 (Q1)	0.74 / 0.78	0.69	13.04% (+0.09)
Aug 19, 2024	2024 (Q4)	0.70 / 0.76	0.72	4.86% (+0.04)
May 20, 2024	2024 (Q3)	0.64 / 0.66	0.55	20.00% (+0.11)
Feb 20, 2024	2024 (Q2)	0.65 / 0.73	0.525	39.05% (+0.20)
Nov 15, 2023	2024 (Q1)	0.60 / 0.69	0.415	66.27% (+0.27)
Aug 18, 2023	2023 (Q4)	0.64 / 0.72	0.398	80.90% (+0.32)
May 23, 2023	2023 (Q3)	0.47 / 0.55	0.298	84.56% (+0.25)
Feb 21, 2023	2023 (Q2)	0.39 / 0.53	0.29	81.03% (+0.24)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PANW Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	$201.88	$200.03	-0.92%
Nov 20, 2024	$196.44	$198.85	+1.23%
Aug 19, 2024	$171.68	$184.00	+7.18%
May 20, 2024	$161.88	$155.83	-3.74%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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