Palo Alto Networks, Inc. Shs Cert Deposito Arg Repr 0.02 Sh Forum & Chats (BCBA:PANW)

Big reverse H&S

Palo Alto’s Q4 FY25 (July quarter) revenue grew 16% year-over-year to $2.54 billion, surpassing estimates by $40 million. Product revenue increased 19%, while subscription and support grew 15%, driven by continued platform consolidation and larger deal sizes. EPS came in at $0.95, beating expectations by $0.06.

Next-Generation Security (NGS) ARR jumped 32% year-over-year to $5.6 billion, representing the segment most deserving of a premium valuation. Remaining Performance Obligations (RPO), a key forward indicator of revenue growth, rose 24% to $15.8 billion, enhancing visibility for FY26.

Guidance was strong across the board. Management expects full-year FY26 revenue to grow 14% year-over-year, with NGS ARR projected to increase by 26–27%. The company also highlighted ongoing AI-driven momentum across Cortex Cloud and Prisma AIRS, along with plans to acquire CyberArk for $25 billion in the second half of FY26 to strengthen identity security and cross-sell opportunities.

Additionally, Founder and CTO Nir Zuk announced his retirement after nearly two decades. Lee Klarich, a long-standing product leader, will step in as CTO and join the board. With accelerating ARR and RPO growth and a clearer path for FY26, Palo Alto exits FY25 at a run rate exceeding $10 billion and is well-positioned as a key consolidator in the AI-driven cybersecurity era.