Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Technology
REINHARDT KRAUSE

Palo Alto Networks Earnings Handily Beat Views On Cloud Growth

Shares of Palo Alto Networks soared Wednesday after the cybersecurity software specialist trounced earnings views, helped by what are known as next-generation cloud products. PANW stock jumped by double digits just after the opening bell.

Late Tuesday, Palo Also reported second-quarter earnings rose 81% year over year to $1.05 per share on an adjusted basis. Including acquisitions, revenue rose 26% to $1.7 billion. Analysts expected earnings of 78 cents a share on sales of $1.65 billion.

PANW stock vaulted 11.9% to 186.79 during the first minutes of the regular session on the stock market today.

Palo Alto said annual recurring revenue from next-generation cloud products surged 63% to $2.33 billion, topping estimates of $2.25 billion. The company added billings rose 26% to $2 billion, topping estimates of $1.96 billion.

PANW Stock: Cloud Products A Bright Spot

For the current quarter ending in April, Palo Alto projected earnings of 92 cents a share on revenue in a range of $1.69 billion to $1.72 billion. Analysts had estimated profit of 79 cents a share on revenue of $1.74 billion.

Palo Alto also raised its revenue outlook for next-generation cloud-based software products to a range of $2.75 billion to $2.8 billion. That topped its earlier outlook of $2.65 billion to $2.7 billion.

Prior to Wednesday's gains, PANW stock had advanced nearly 20% for 2023 through Tuesday's close. It holds a Relative Strength Rating of 67 out of a best-possible 99, according to IBD Stock Checkup.

Meanwhile, the company has spent over $3.4 billion making 10 acquisitions over the past three years. With roots in the "firewall" network security market, Palo Alto aims to build a broad cloud-based security platform. Firewall appliances protect computer networks by blocking online intrusions and monitoring web-based apps.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.