Palo Alto Networks (PANW) reported fiscal third-quarter revenue and profit that beat analysts’ expectations, thanks in part to growth in its next-generation security business.
The cybersecurity firm reported revenue of $2.29 billion, up 15% year-over-year and above the analyst consensus from Visible Alpha. Its adjusted net income of $560.9 million, or 80 cents per share, rose from $454.9 million, or 66 cents per share, in the year-ago quarter, topping estimates.
The gains came as annual recurring revenue from its next-generation security services improved 34% to $5.1 billion, also beating expectations.
Looking ahead, Palo Alto Networks said it expects fiscal third-quarter adjusted earnings per share of 87 cents to 89 cents on revenue of $2.49 billion to $2.51 billion, slightly ahead of Street projections at the midpoint.
Palo Alto Networks shares declined close to 4% in after-hours trading. The stock was up about 7% for 2025 through Tuesday’s close.
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