Palo Alto Networks beats estimates but margin concerns send shares lower
Shares in Palo Alto Networks Inc. fell around 2% in late trading today after the cybersecurity company beat Wall Street targets in its fiscal fourth quarter and guided above consensus for the year ahead, though not on margins. The stock had already dropped more than 5% during the regular session. For the quarter that ended […] The post Palo Alto Networks beats estimates but margin concerns send…
Palo Alto Networks reported strong financial results for its fiscal fourth quarter, beating estimates with adjusted earnings per share of $1.02 and revenue of $3.41 billion, up 34% year-over-year. The company's next-generation security annual recurring revenue grew 63% to $9.10 billion, with a 40% adjusted free cash flow margin for the fiscal year.
However, the stock fell around 2% in late trading after the company guided above consensus for the year ahead but failed to meet margin expectations. The company attributes its success to the growing demand for cybersecurity solutions driven by artificial intelligence advancements, and has acquired Console Inc. to expand its AI-native platform.
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