What You Need To Know Ahead of Palo Alto Networks’ Earnings Report

Key Metrics: 2025 Outlook

Spending fatigue among Palo Alto Networks’ customers has been a major theme of the company’s results in recent quarters, signaling headwinds in the cybersecurity industry. Palo Alto Networks’ guidance has been used as an indicator for the sector.

The company is expected to provide guidance for the full fiscal 2025 with analysts expecting revenue of $9.09 billion. Last year, Palo Alto offered outlooks for billings, revenue, net income per share and free cash flow margins.

Business Spotlight: CrowdStrike Outage Impact

Palo Alto Networks has been leaning into its platformization efforts, where it consolidates its cybersecurity services on its platform and bundles offers, a bid to become a one-stop shop and offset spending fatigue.

While Palo Alto Networks has indicated that platformization has been positively received by customers, the recent global outage caused by a faulty CrowdStrike (CRWD) update could raise questions about the outlook for the market.

The company could also comment on whether the incident might lead to customers leaving CrowdStrike in search of alternative cybersecurity providers. Analysts have said Palo Alto Networks could gain customers.

Palo Alto shares were little changed Monday. The stock is up more than 12% in 2024, though off highs seen in February.