Strong Financial Performance
Palo Alto Networks exceeded expectations across every guided metric with a 16% increase in total revenue, 24% growth in Remaining Performance Obligations (RPO), and a 29% growth in Next-Generation Security ARR. Operating margins exceeded 30% for the second consecutive quarter.
Key Large Deals
Palo Alto Networks secured a $100 million deal with a large US telecom provider and a $33 million SASE deal with a US cabinet agency, showcasing strong demand for platformization.
Innovation and Strategic Acquisitions
The company launched Prisma AIS 2.0, introduced Agentyx, and announced acquisitions of CyberArk and Chronosphere to expand capabilities in identity security and observability.
SASE and Software Firewall Growth
SASE ARR grew 34% year over year surpassing $1.3 billion, and product revenues grew 23% with nearly half driven by software form factors.
Focus on AI and Quantum Readiness
The company emphasized security in AI environments and announced a quantum-safe strategy, highlighting strategic partnerships with IBM for quantum security.