Cybersecurity firm Palo Alto Networks (PANW) has reported quarterly financial results that surpassed Wall Street’s expectations.
The company announced earnings per share (EPS) of $1.02 U.S., ahead of consensus analyst forecasts of $0.98 U.S.
Revenue for the year’s second quarter totaled $3.41 billion U.S., which topped the $3.35 billion U.S. expected on Wall Street. Sales were up 34% from a year earlier.
Palo Alto makes software that defends corporate networks from cyberattacks. The company said it is benefitting as artificial intelligence (A.I.) makes it easier to launch cyberattacks.
“AI is a long-term tailwind for cybersecurity,” said Palo Alto Networks CEO Nikesh Arora on the company’s earnings call with analysts and media.
Free cash flow for the quarter reached $1.29 billion U.S., bringing the company’s free cash flow margin to 38.4%.
Forward guidance from the company was also strong, particularly its order backlog and annual recurring revenue, both of which beat Wall Street consensus.
Management said that they expect revenue in the current quarter of $3.30 billion U.S. to $3.31 billion U.S., representing 34% growth.
Palo Alto Networks also forecast earnings per share of $0.96 U.S. to $0.98 U.S. for the current quarter. Both projections were ahead of consensus forecasts among Wall Street analysts.
PANW stock has gained 90% over the last 12 months to trade at $362.09 U.S. per share.
