Palo Alto Networks’ (PANW) stock is up 2% after the cybersecurity firm reported fiscal fourth quarter financial results that beat Wall Street forecasts on the top and bottom lines.
The Silicon Valley-based company reported earnings per share (EPS) of $1.51 U.S., which surpassed consensus expectations that called for $1.41 U.S.
Revenue in the quarter totaled $2.20 billion U.S. versus $2.16 billion U.S. that had been anticipated among analysts. Sales rose 12% from a year earlier.
At the end of its 2024 fiscal year, Palo Alto had $3.12 billion U.S. of cash on hand. Management said they planned to use the cash to buyback $500 million U.S. of company stock.
Palo Alto Networks’ total stock buyback authorization now stands at $1 billion U.S.
The company said the strong financial results were due to more than 90 customers converting from a single product to using Palo Alto’s multiple product platform.
The company also benefitted from growth in recurring revenue. Recurring subscription revenue now accounts for 53% of Palo Alto Networks’ total revenue.
In terms of guidance, management said they expect revenue of $9.10 billion U.S. to $9.15 billion U.S. for the 2025 fiscal year, along with earnings of $6.18 U.S. to $6.31 U.S. per share.
Analysts on Wall Street had fiscal 2025 revenue of $9.10 billion U.S. and earnings of $6.22 U.S. a share penciled in for the company.
Prior to today (Aug. 20), Palo Alto Networks’ stock had gained 43% over the last 12 months to trade at $343.36 U.S. per share.
