Palo Alto Networks (PANW) Reports Strong 2025 Growth

By Greg Peters • Tuesday, August 19 06:01 • Permanent Link

Palo Alto Networks has reported its fiscal fourth quarter and fiscal year 2025 financial results, showcasing solid growth in key metrics. The company's total revenue for the fiscal fourth quarter 2025 grew to $2.5 billion, marking a 16% increase from the same period in 2024. For the entire fiscal year 2025, the revenue grew 15% year over year to $9.2 billion.

One of the standout performances was in the next-generation security annual recurring revenue (ARR), which saw a significant 32% year-over-year growth, reaching $5.6 billion. Additionally, the remaining performance obligation grew by 24% year over year to $15.8 billion.

However, the GAAP net income for the fiscal fourth quarter 2025 was $253.8 million, or $0.36 per diluted share, compared with $357.7 million, or $0.51 per diluted share, for the fiscal fourth quarter 2024. On a non-GAAP basis, the net income for the same period was $673.0 million, or $0.95 per diluted share, compared with $522.2 million, or $0.75 per diluted share, for the fiscal fourth quarter 2024.

Looking ahead, Palo Alto Networks provided its financial outlook for the fiscal first quarter 2026, expecting next-generation security ARR of $5.82 billion to $5.84 billion, representing year-over-year growth of 29%, and total revenue in the range of $2.45 billion to $2.47 billion, representing year-over-year growth of 15%.

For the fiscal year 2026, the company anticipates next-generation security ARR of $7.00 billion to $7.10 billion, representing year-over-year growth of between 26% and 27%, and total revenue in the range of $10.475 billion to $10.525 billion, representing year-over-year growth of 14%.

Palo Alto Networks also noted its commitment to continued operating efficiency and strong free cash flow generation, positioning the company for sustained growth in fiscal year 2026.

The company will host an earnings call today to discuss these results and provide further insights. As a result of these announcements, the company's shares have moved -0.41% on the market, and are now trading at a price of $176.355. Check out the company's full 8-K submission here.

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