Palo Alto Networks Reports Upbeat Earnings, Analysts Impressed By Platform Acceleration
Analysts published commentary on Palo Alto Networks Inc (NASDAQ:PANW) after the company reported upbeat fiscal first-quarter results.
- Goldman Sachs analyst Gabriela Borges maintained a Buy rating, while reducing the price target from $425 to $421.
- Needham analyst Matt Dezort reiterated a Buy rating, while raising the price target from $385 to $450.
- JMP Securities analyst Trevor Walsh reaffirmed a Market Outperform rating, while lifting the price target from $380 to $415.
- Piper Sandler analyst Rob Owens maintained a Neutral rating, while raising the price target from $330 to $385.
- KeyBanc Capital Markets analyst Eric Heath reiterated an Overweight rating and price target of $435.
- Cantor Fitzgerald analyst Jonathan Ruykhaver reaffirmed an Overweight rating and price target of $445.
- RBC Capital Markets analyst Matthew Hedberg maintained an Outperform rating and a price target of $450.RBC Capital Markets
- Oppenheimer analyst Ittai Kidron reiterated an Outperform Buy rating and price target of $450.
- WestPark Capital analyst Paul Rodriguez reaffirmed a Hold rating on the stock.
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Goldman Sachs: Palo Alto reported its quarterly revenues 1% above the Street and earnings 6% higher. Management raised their fiscal 2025 guidance for NGS ARR (next-generation security annual recurring revenue) by 2%.
Gross margins came in 85 basis points (bps) short of estimates. Calculated billings declined by 14% year-on-year and came around 20% below the Street. “We believe there continues to be good runway for Palo Alto to transition customers to higher performance (and price) attached subscriptions,” Borges said in a note.
Needham: ARR and revenues are up 40% year-on-year at $4.52 billion and up 14% at $2.14 billion, beating consensus by 3.5% and 1%, respectively. RPOs (remaining performance obligations) grew by 20% year-on-year to $12.6 billion and the company guided for an acceleration to 20%-21% in the second quarter, he added.
“Platformization progress continues to impress,” with the company adding more than 70 customers in the quarter, which brings the total …
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