The cybersecurity company reports quarterly earnings of $1.56 per share, beating analyst estimates of $1.48 per share.

Palo Alto Networks Inc PANW reported financial results for the first quarter of fiscal 2025 after the bell on Wednesday. Here's a look at the key details from the quarter.

Q1 Earnings: Palo Alto reported first-quarter revenue of $2.14 billion, beating the consensus estimate of $2.12 billion. The cybersecurity company reported quarterly earnings of $1.56 per share, beating analyst estimates of $1.48 per share, according to Benzinga Pro.

Total revenue was up 14% year-over-year. Remaining performance obligations grew 20% year-over-year to $12.6 billion. Next-generation security annual recurring revenue increased 40% year-over-year to $4.5 billion.

"Our Q1 results reinforced our conviction in our differentiated platformization strategy," said Nikesh Arora, chairman and CEO of Palo Alto Networks.

"We see a growing market realization that platformization is the game changer that will solve security and enable better AI outcomes. I expect this will be a multiyear trend for which we are best positioned to deliver to our customers."

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Palo Alto also announced that its board approved a two-for-one forward stock split. Shareholders of record as of Dec. 12 will receive one additional share for each share held after the market close on Dec. 13. The stock is expected to start trading on a split-adjusted basis on Dec. 16.

Guidance: Palo Alto expects fiscal second-quarter revenue to be in the range of $2.22 billion to $2.25 billion versus estimates of $2.23 billion. The company expects second-quarter adjusted earnings to be between $1.54 and $1.56 per share versus estimates of $1.55 per share.

Palo Alto expects full-year 2025 revenue to be between $9.12 billion and $9.17 billion versus estimates of $9.13 billion. The company anticipates full-year earnings between $6.26 and $6.39 per share versus estimates of $6.28 per share.

Palo Alto executives will hold a call with analysts and investors at 4:30 p.m. ET to further discuss the company's quarterly results.

PANW Price Action: Palo Alto shares were down 5.83% in after-hours, trading at $371.40 at the time of writing, according to Benzinga Pro.

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