Palo Alto Networks Q2 results beat estimates

The cybersecurity firm reported non-GAAP Q2 earnings of $1.55 a share on revenue of $1 billion.

Palo Alto Networks delivered better-than-expected second quarter financial results on Monday. The cybersecurity firm reported non-GAAP Q2 earnings of $154.2 million, or $1.55 a share, on revenue of $1 billion, up from $816.7 million a year ago.

Analysts were expecting the security-software vendor to report earnings of $1.43 a share on revenue of $985.68 million.

The company's Q2 billings grew to $1.2 billion, up 22% from the same period last year, while its deferred revenue rose 30% year over year to $4.2 billion.

"The momentum in the business continues to be strong, with second quarter revenue growth of 25% year over year to over 1 billion USD, driven by strong execution across the board," said Palo Alto Networks CEO Nikesh Arora. "Events like the SolarStorm attack highlight the importance of cybersecurity, and Palo Alto Networks is well positioned to protect our customers with best-of-breed solutions. We are excited about the bets that we have made in SASE, Cloud and AI. Our three-platform strategy is paying off."

In terms of guidance, Palo Alto expects third quarter EPS in the range of $1.27 to $1.29 and revenue in the range of $1.05 billion to $1.06 billion. The guidance is roughly in line with Wall Street's consensus for EPS of $1.28 a share and revenue of $1.05 billion.

For the year the company expects revenue to range from $4.15 billion to $4.20 billion, with non-GAAP net income per share in the range of $5.80 to $5.90. The EPS guidance incorporates net expenses related to the company's proposed acquisition of Bridgecrew, using 99 million to 101 million shares.

The company's stock fell more than 3% in after-hours trading.