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
-
Trump's Immigration Policies and the Price of Home Healthcare: First 100 DaysPresident Trump's immigration policies may wallop your pocketbook if you rely on a home healthcare aide.
-
Stock Market Today: Stocks Extend a Quiet Winning StreakThe S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
Stock Market Today: Stocks Extend a Quiet Winning Streak
The S&P 500 Index could actually close April with a monthly gain, which would be an extraordinary sign of market resilience.
-
How Trump's First 100 Days Have Impacted Your PortfolioPresident Trump's first 100 days in office have been busy, with a flurry of executive orders sparking volatility in the stock and bond markets.
-
Is It Still Worth It to Gift Savings Bonds?Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
Don't Veer Off Course at the First Sign of a Squall in the MarketsWhen markets go nuts and investor sentiment drops, you can keep your sanity by trusting in and sticking with your long-term plan.
-
How Business Owners Can Prepare for a Terminal DiagnosisThe most important thing is readiness, whether the owner faces a life-changing diagnosis or an employee does.
-
Advisers, Take Note: How 2025 Social Security Changes May Impact Your ClientsWhat financial advisers might need to know to help their clients navigate Social Security in 2025.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
