Palo Alto Networks (PANW) stock is trading comfortably higher Tuesday after the cybersecurity company beat top- and bottom-line expectations for its fiscal fourth quarter and issued a strong outlook.
In the three months ended July 31, Palo Alto Network's revenue increased 12.1% year-over-year to $2.2 billion. Its earnings per share (EPS) was up 4.9% from the year-ago period to $1.51.
"We finished off the year with strong execution on our platformization strategy in Q4," said Palo Alto Networks CEO Nikesh Arora in a statement. "As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Palo Alto Networks' results topped expectations. Wall Street was anticipating revenue of $2.16 billion and earnings of $1.41 per share, according to CNBC.
For the first quarter of fiscal 2025, the company said it anticipates revenue in the range of $2.1 billion to $2.13 billion and earnings per share to arrive between $1.47 to $1.49. This compares to analysts' forecasts for revenue of $2.1 billion and earnings of $1.43 per share, according to Yahoo Finance.
For the all of fiscal 2025, Palo Alto Networks said it anticipates revenue in the range of $9.1 billion to $9.15 billion and EPS of $6.18 to $6.31. Analysts, meanwhile, are targeting revenue of $9.11 billion and earnings of $6.19 per share.
The report also showed that the company's board of directors approved an additional $500 million in share buybacks, bringing the total authorization to $1 billion. Stock buybacks can help boost the share price.
Is Palo Alto Networks stock a buy, sell or hold?
Palo Alto Networks has been volatile on the price charts in 2024, but shares are still up 25% for the year to date. Unsurprisingly, Wall Street is bullish on the cybersecurity stock.
For one, the consensus recommendation of the 54 analysts following PANW that are tracked by S&P Global Market Intelligence is Buy. And while the average price target is $373.16, representing implied upside of about 3% to current levels, analysts may very well revise their price targets higher following the strong quarter.
In fact, financial services firm Wedbush raised its price target on PANW stock this morning to $400 from $375, while maintaining its Outperform rating (equivalent to a Buy).
"We continue to believe the platform approach in cybersecurity is the right long-term move for PANW and [it] will ultimately emerge from this transition in a stronger market position," said Wedbush analyst Daniel Ives in a note to clients.
Related Content
-
House GOP Bill Aims to Abolish the IRS and Rewrite the Tax CodeTax Policy The stability of the IRS faces yet another challenge as the U.S. presidency changes hands.
-
More Taxes Could Slam New Yorkers Over MTA Budget ShortfallState Taxes Lawmakers warn that New Yorkers may need to brace for more taxes.
-
Irrevocable Trusts: So Many Options to Lower Taxes and Protect AssetsIrrevocable trusts offer nearly endless possibilities for high-net-worth individuals to reduce their estate taxes and protect their assets.
-
Stock Market Today: Dow Leads as UnitedHealth Stock PopsUnitedHealth was the best Dow Jones stock Monday on reports that Medicare Advantage payments could rise in 2026.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Financial Confidence? It's Just Good Planning, Boomers SayBaby Boomers may have hit the jackpot money-wise, but many attribute their wealth to financial planning and professional advice rather than good timing.
-
Will You Be Able to Afford Your Dream Retirement?You might need to save more than you think you do. Here are some expenses that might be larger than you expect, along with ways to ensure you save enough.
-
Three Steps to Simplify Paying Your Taxes in RetirementOnce you retire, how you pay some of your taxes can change. Here's how to get a handle on them so you don't run afoul of the IRS and face penalties.
-
More SECURE 2.0 Retirement Enhancements Kick in This YearSaving for retirement gets a boost with these SECURE 2.0 Act provisions that are starting in 2025.
-
Saving for Your Emergency Fund: As Easy as 1-3-6An emergency fund that can cover six months' worth of expenses is far easier to build if you focus on smaller goals at first.
