Palo Alto Networks Reports Strong Fiscal Q1 2025 Results and Approves 2-For-1 Stock Split

Palo Alto Networks, a global leader in cybersecurity, announced its fiscal first quarter 2025 financial results on November 20, 2024, highlighting significant growth across various metrics. The company reported a 14% year-over-year increase in total revenue, reaching $2.1 billion for the quarter ended October 31, 2024, up from $1.9 billion in the same period last year.

The company also saw a substantial increase in its Next-Generation Security Annual Recurring Revenue (ARR), which grew 40% year over year to $4.5 billion. Additionally, the remaining performance obligation increased by 20% year over year to $12.6 billion.

In terms of profitability, Palo Alto Networks reported a GAAP net income of $350.7 million, or $0.99 per diluted share, compared to $194.2 million, or $0.56 per diluted share, in the fiscal first quarter of 2024.

Alongside the financial results, the company announced that its board of directors has approved a two-for-one forward stock split of the company’s outstanding shares of common stock. This stock split will be effective through an amendment to the company’s restated certificate of incorporation, increasing the number of authorized shares from 1.0 billion to 2.0 billion. Stockholders of record as of December 12, 2024, will receive an additional share for every share held, with trading expected to begin on a split-adjusted basis on December 16, 2024.

The market has reacted positively to these announcements, with analysts and investors showing optimism about the company’s future performance. Several firms have raised their price targets for Palo Alto Networks, reflecting the strong financial performance and the company’s strategic moves.