Particle.news
Download on the App Store
7 ARTICLES
·
21h ago

Palo Alto Networks Reports Q3 FY25 Revenue and Earnings Beats, Shares Drop on Margin Miss

The cybersecurity leader surpassed expectations on revenue and EPS, raised full-year guidance, but fell short on gross margins, prompting a 4% stock decline.

Image
Image
Image

Overview

  • Palo Alto Networks posted Q3 FY25 revenue of $2.29 billion, up 15% year-over-year, and adjusted EPS of $0.80, exceeding analyst forecasts.
  • Next-generation security annual recurring revenue grew 34% to $5.1 billion, highlighting strong platform adoption.
  • Non-GAAP gross margin came in at 76%, underperforming analysts' expectations of 77.2%.
  • The company raised its full-year revenue outlook to $9.17–$9.19 billion and adjusted EPS to $3.26–$3.28, reflecting confidence in its ongoing growth strategy.
  • Despite the positive results and guidance, shares fell 4% in after-hours trading, driven by margin concerns and cautious investor sentiment.