Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) shares dipped more than 4% afterhours as investors reacted with disappointment to the company’s September quarter earnings and guidance, despite the cybersecurity firm topping Wall Street estimates for both revenue and profit.
For fiscal Q1, Palo Alto reported revenue of $2.5 billion, up 16% year-over-year and ahead of estimates of $2.46 billion.
Remaining performance obligation (RPO), a measure of future revenue, grew 24% from the year-ago period to $15.5 billion, beating estimates of $15.43 billion.
Earnings per share (EPS) were $0.93, topping the Wall Street consensus of $0.89.
"Our strong start to the fiscal year was marked by excellent results across all metrics, and significant platformization wins," Palo Alto CEO Nikesh Arora said in a statement.
"Our robust innovation engine, paired with the strategic acquisitions of CyberArk and Chronosphere, positions us as the data and security partner of choice in the AI era."
For fiscal Q2, ending in January, Palo Alto projected revenue of $2.58 billion at the midpoint, implying growth of 14% to 15%. RPO was guided at $15.8 billion at the midpoint, representing growth of 21% to 22%. Both revenue and RPO were in line with the Wall Street consensus.
The company expects EPS in the range of $0.93 to $0.95, beating the consensus of $0.93.