Palo Alto Q4 Earnings: Revenue, EPS Beat Estimates, Strong Guidance Across The Board Sends Shares Higher

Palo Alto Networks Inc PANW reported financial results for the fourth quarter of fiscal 2025 after the market close on Monday. Here’s a look at the key details from the report.

PANW stock is showing exceptional strength. See what is driving the move here.

Q4 Highlights: Palo Alto posted fourth-quarter revenue of $2.54 billion, beating analyst estimates of $2.50 billion. The cybersecurity company reported fourth-quarter adjusted earnings of 95 cents per share, beating analyst estimates of 88 cents per share, according to Benzinga Pro.

Total revenue was up 16% year-over-year and remaining performance obligations grew 24% year-over-year to $15.8 billion. The company said next-generation security annual recurring revenue increased 32% year-over-year to $5.6 billion.

Palo Alto ended the quarter with approximately $2.27 billion in cash and cash equivalents.

“Our strong execution in Q4 reflects a fundamental market shift in which customers understand that a fragmented defense is no defense at all against modern threats,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. 

“They are partnering with us because our platforms are designed to work in concert, creating powerful operational synergies that deliver superior, near real-time outcomes and the efficiency our customers need.” 

Palo Alto announced that founder, chief technology officer and board member Nir Zuk has retired from his roles at the company. Chief Product Officer Lee Klarich has been appointed to the company’s board and will assume the role of CTO.

Outlook: Palo Alto expects first-quarter revenue for fiscal 2026 to be in the range of $2.45 billion to $2.47 billion versus estimates of $2.43 billion. The company sees first-quarter adjusted earnings between 88 cents and 90 cents per share versus estimates of 85 cents per share.

Palo Alto expects fiscal 2026 revenue of $10.48 billion to $10.53 billion versus estimates of $10.43 billion. The company expects 2026 adjusted earnings of $3.75 to $3.85 per share versus estimates of $3.67 per share.

Palo Alto’s management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.

PANW Price Action: Palo Alto shares were up 5.09% in after-hours Monday, trading at $185.79 at the time of publication, according to Benzinga Pro.

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