Palo Alto Networks (PANW) on Monday reported third-quarter earnings and revenue that slightly beat Wall Street targets amid lower expectations and slowing growth in its core network firewall market. Earnings and revenue forecasts for Palo Alto stock met consensus estimates.
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On the stock market todayPalo Alto stock fell more than 8% to 295.10 in extended trading.
In the quarter ended April 30, Palo Alto’s profit increased 20% to $1.32 per share on an adjusted basis. Additionally, revenue climbed 15% to $2 billion, including acquisitions.
Analysts had expected earnings of $1.25 per share on revenue of $1.97 billion.
Palo Alto Stock: Billing Tips
For the current quarter ending in July, the cybersecurity company forecast earnings of $1.41 per share, meeting expectations. Additionally, Palo Alto projects revenue of $2.16 billion at the midpoint of guidance, in line with estimates of $2.16 billion.
The company forecast billings of $3.55 billion, slightly above estimates of $3.45 billion.
Additionally, sales of firewall network appliances have slowed. Firewall devices protect computer networks by blocking online intrusions and monitoring web applications.
However, Palo Alto has built an extensive cloud-based security platform through acquisitions. Cloud software revenue represents a growing share of overall sales.
Prior to Palo Alto’s earnings report, the cybersecurity stock was down 11% in 2023.
Palo Alto stock holds a Composite Rating of 97, according to IBD Stock Check.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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