Palo Alto Networks ($PANW) Earnings Beat Expectations

Palo Alto Networks ( PANW ) reported fiscal third-quarter results that exceeded analysts' expectations and provided revenue guidance that matched estimates. The company's shares fell over 8% in extended trading following the release of the quarterly earnings report. Palo Alto ( PANW ) reported revenue for the latest quarter of $1.98 billion, a 15% year-over-year increase and slightly ahead of analysts' expectations. Net income came in at $278.8 million or 79 cents per share, versus $107.8 million or 31 cents per share in the year-ago period.

The cybersecurity company had previously warned about "spending fatigue" and had shifted towards a "platformization" strategy to combat it. The company said it expects revenue to be between $2.15 billion and $2.17 billion in the fiscal fourth quarter and in the range of $7.99 billion to $8.01 billion for the full 2024 fiscal year. The revenue outlook was consistent with consensus estimates of $2.16 billion and $7.98 billion, respectively.

Palo Alto Networks shares ( PANW ) fell nearly 9% in extended trading Monday after the cybersecurity firm issued a lackluster current-quarter and full-year outlook. The company's muted guidance has raised concerns about its recent move to a consolidated cybersecurity platform aimed at driving growth among cautious enterprise customers.

Palo Alto Networks shares ( PANW ) found a zone of support between $281 and $295 from the 50-day moving average and price action over the past five months. The stock finished after-hours trading at $295.61, an 8.7% decline from the end of the regular session.

For the fiscal fourth quarter ending in July, Palo Alto Networks ( PANW ) guided revenue of $2.15 billion to $2.17 billion, with the $2.16 billion midpoint matching analysts' forecast. It sees billings in the period, which account for deferred revenue, coming in between $3.43 billion and $3.48 billion, compared to expectations of $3.45 billion.

In an effort to pursue growth amid cautious enterprise spending on cybersecurity solutions, the company recently pivoted to a consolidated security platform, offering initiatives such as free product offers to entice corporate signups.