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Investing.com - Shares in Palo Alto Networks (NASDAQ:PANW) slipped in premarket U.S. trading on Wednesday as analysts pointed to "mixed" earnings and guidance from the infrastructure software group.
The company posted fiscal third-quarter results that topped Wall Street estimates on growing demand for its next-generation security platform.
For the three months ended April 30, Palo Alto reported adjusted earnings of $0.80 per share on revenue of $2.3 billion, topping estimates for $0.77 and $2.28B, respectively.
The better-than-expected results were underpinned by strength in the tech company’s next-generation security services.
Next-generation security annual recurring revenues (ARR) grew 34% year-over-year to $5.1 billion.
In its fiscal fourth quarter, the group said it expects to deliver adjusted per-share income of $0.87 to $0.89 on revenue of $2.49 billion to $2.51 billion. That compared with estimates for adjusted per-share income of $0.87 on revenue of $2.5 billion.
Next-generation security ARR for its fourth quarter was guided in a range of $5.52 billion to $5.57 billion, versus consensus estimates of $5.57 billion.
For its 2025 fiscal year, Palo Alto expects adjusted net profit per diluted share to be between $3.26 to $3.28 and revenue of $9.17 billion to $9.19 billion.
"Palo Alto Networks reported a few cents of third-quarter earnings per share upside while demand key performance indicators were mixed, with decent sales and next-generation security ARR but modest weakness in remaining performance obligations," analysts at Vital Knowledge said in a note to clients.
(Yasin Ebrahim contributed reporting.)