Palo Alto Networks Inc (NYSE:PANW, ETR:5AP) shares moved higher afterhours as the cybersecurity firm reported an earnings beat for the fiscal fourth quarter.
Profit for the quarter was $673 million or $0.95 per share, ahead of estimates of $0.89.
Revenue grew 16% year-over-year to $2.5 billion, in line with Street estimates.
Next Generation Security annual recurring revenue grew 32% year-over-year to $5.6 billion.
Remining performance obligation (RPO), a measure of future revenue, was up 24% from the year-ago quarter at $15.8 billion.
"Our strong execution in Q4 reflects a fundamental market shift in which customers understand that a fragmented defense is no defense at all against modern threats,” Palo Alto CEO Nikesh Arora said in a statement.
Dipak Golechha, Palo Alto CFO, added that the company’s strong topline results, operating efficiency and free cash flow generation made it a “Rule-of-50” company for the fifth consecutive year.
"We are excited to carry this momentum into fiscal year 2026, where we will continue to execute against our profitable growth framework," Golechha said.
For fiscal 2026, Palo Alto guided total revenue in the range of $10.475 billion to $10.525 billion, representing growth of 14% from $9.2 billion this year.
Adjusted earnings per share are expected to be in the range of $3.75 to $3.85, compared to $3.34 for fiscal 2025.
Shares of Palo Alto were up 6.7% at $188 post-earnings.