Palo Alto Networks Raises Fiscal Year Outlook After 1Q Results

By Sabela Ojea

Palo Alto Networks raised its outlook for the year and said revenue climbed in its fiscal first quarter fueled by further subscription growth.

The cybersecurity company on Wednesday posted a net profit for the three-months ended Oct. 31 of $350.7 million, or 99 cents a share, compared with $194.2 million, or 56 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings per share came in at $1.56. Analysts polled by FactSet had forecast adjusted earnings of $1.48.

Revenue rose 14% to $2.14 billion, beating the $2.12 billion expected by analysts. Subscription and support revenue rose to $1.79 billion from $1.54 billion.

Palo Alto had most recently guided for adjusted earnings per-share in the range of $1.47 to $1.49, and revenue of $2.10 billion to $2.13 billion.

"We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes," Chief Executive Nikesh Arora said. "I expect this will be a multiyear trend for which we are best positioned to deliver to our customers."

For the second quarter, the company said it expects revenue to grow up to 14% to $2.22 billion to $2.25 billion, and adjusted earnings in the range of $1.54 to $1.56.

The company also raised its outlook for fiscal 2025 and now expects revenue of $9.12 billion to $9.17 billion, up from $9.10 billion and $9.15 billion previously. Palo Alto forecast adjusted earnings per-share of $6.26 to $6.39, an increase from a prior outlook of $6.18 and $6.31. Analysts polled by FactSet expected $9.13 billion in revenue and $6.28 a share in adjusted earnings.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix