Palo Alto Networks Q2 Earnings: EPS Beat, Revenue Up 19%, Soft Guidance And More
Portfolio Pulse from Adam Eckert
Palo Alto Networks Inc (NASDAQ:PANW) reported a 19% year-over-year increase in fiscal Q2 revenue to $1.98 billion, surpassing the consensus estimate of $1.97 billion. Earnings per share were $1.46, beating estimates of $1.30. The company's remaining performance obligations grew 22% to $10.8 billion, and its adjusted operating margin increased to 29%. However, Palo Alto provided softer guidance for Q3 and the full year, with expected revenue and earnings below analyst estimates, leading to a 12.9% drop in shares after hours.
February 20, 2024 | 9:25 pm
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Palo Alto Networks reported strong Q2 earnings with a 19% revenue increase and EPS beating estimates. However, softer guidance for Q3 and FY2024 led to a 12.9% drop in shares after hours.
The significant after-hours stock price drop is directly attributed to the company's softer guidance for the upcoming quarter and the full year, which was below analyst expectations. Despite the strong Q2 performance, investor sentiment was negatively impacted by the future earnings and revenue outlook, leading to a decrease in stock price.
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