Palo Alto Networks Posts Better-Than-Expected Earnings

Palo Alto Networks (PANW) reported better-than-expected earnings for the fourth quarter of fiscal 2024, as CEO Nikesh Arora highlighted the company’s “strong execution” of its platformization strategy.

The cybersecurity provider reported fiscal fourth-quarter revenue of $2.18 billion, up 12% from the year-ago period and slightly above analysts’ estimates. Net income was $357.7 million or $1.01 per share, gaining from the year prior and ahead of projections.

For the full year of fiscal 2024, revenue and net income were stronger than analysts expected at $8.03 billion and $2.58 billion, respectively.

‘Strong Execution’ of Platformization Strategy

“We finished off the year with strong execution on our platformization strategy,” Palo Alto Networks CEO Nikesh Arora said in a release, adding that “as we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution.”

The company has leaned into its platformization plan, where it consolidates its cybersecurity services on its platform and bundles offers, in an effort to become a one-stop shop for clients.

Palo Alto Networks said it expects revenue for the first fiscal quarter of 2025 in the range of $2.1 billion and $2.13 billion, while full-year revenue for fiscal 2025 is projected to be between $9.1 billion and $9.15 billion, both roughly in line with analysts’ expectations.

Shares of Palo Alto Networks were little changed in extended trading Monday following the release. The stock has grown over 16% since the start of the year through Monday’s close.