For the quarter ended July 2025, Palo Alto Networks (PANW) reported revenue of $2.54 billion, up 15.8% over the same period last year. EPS came in at $0.95, compared to $0.75 in the year-ago quarter.
The reported revenue represents a surprise of +1.46% over the Zacks Consensus Estimate of $2.5 billion. With the consensus EPS estimate being $0.88, the EPS surprise was +7.95%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- RPO (Remaining Performance Obligation): $15.80 billion compared to the $15.26 billion average estimate based on six analysts.
- Revenue- Product: $573.9 million versus the 14-analyst average estimate of $553.4 million. The reported number represents a year-over-year change of +19.4%.
- Revenue- Subscription and support: $1.96 billion compared to the $1.95 billion average estimate based on 14 analysts. The reported number represents a change of +14.8% year over year.
- Revenue- Subscription and support- Support: $647.4 million versus the three-analyst average estimate of $625.85 million. The reported number represents a year-over-year change of +11.3%.
- Revenue- Subscription and support- Subscription: $1.32 billion versus $1.32 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.6% change.
- Product gross profit Non-GAAP: $440.9 million compared to the $435.03 million average estimate based on 10 analysts.
- Subscription and support gross profit Non-?GAAP: $1.48 billion compared to the $1.5 billion average estimate based on 10 analysts.
- Subscription and support gross profit GAAP: $1.42 billion versus the two-analyst average estimate of $1.43 billion.
- Product gross profit GAAP: $437.7 million versus $422.66 million estimated by two analysts on average.
View all Key Company Metrics for Palo Alto here>>>
Shares of Palo Alto have returned -9.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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