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Investing.com -- Palo Alto Networks’ shares fell 6% in extended trading on Wednesday after the cybersecurity group topped quarterly expectations but issued revenue guidance that largely matched or slightly lagged Wall Street estimates.
The Santa Clara-based company reported fiscal first-quarter adjusted earnings of $0.93 per share, beating expectations of $0.89.
GAAP earnings fell modestly to $0.47 per share, compared with $0.49 a year earlier.
Revenue rose 16% to $2.5 billion, ahead of the $2.46 billion consensus, supported by continued momentum in its next-generation security portfolio.
Annual recurring revenue from those products climbed 29% to $5.9 billion, while remaining performance obligations increased 24% to $15.5 billion.
CEO Nikesh Arora said the quarter delivered “excellent results across all metrics,” on strong platform wins and the strategic lift from recent acquisitions, including CyberArk and observability platform Chronosphere, which Palo Alto said it intends to acquire.
For the current quarter, the company forecast revenue of $2.57–$2.59 billion, up 14–15% but bracketing the Street’s $2.59 billion estimate. It guided to adjusted EPS of $0.93–$0.95, in line with consensus.
Full-year guidance calls for revenue of $10.50–$10.54 billion and adjusted EPS of $3.80–$3.90. Both ranges sit broadly around analysts’ forecasts, with revenue at the low end fractionally below expectations.
Management reiterated a 30% non-GAAP operating margin and said it remains on track to achieve 40%+ adjusted free-cash-flow margins by FY28.
Palo Alto also appointed Mark Goodburn to its board and said long-serving director Mary Pat McCarthy will retire in January.