Palo Alto Networks Gains As Cybersecurity Demand Persists
Palo Alto Networks (PANW:US) shares are trading higher this week after the cybersecurity company reported better-than-expected results for its second quarter.
Investors are obviously impressed by Palo Alto Networks as the company’s management continues to execute well on its strategy despite heightened macroeconomic pressures.
PANW reported its revenue increased by 26% year-over-year to $1.66 billion, driven by the 29% jump in Subscription and Support revenue. Billings jumped 26% to $2.03 billion while the adjusted earnings per share came in at $1.05.
"We continue to see our teams execute well in the midst of macroeconomic challenges, helping customers consolidate their security architectures," said Nikesh Arora, chairman, and CEO of Palo Alto Networks. "The performance of our software-based and cloud-delivered portfolio validates the significant investments we have made over the last several years and has enabled us to raise our billings and NGS ARR guidance."
Investors were also happy to see that PANW expects roughly 10% growth in billings for its third fiscal quarter while revenue is seen in the range of $1.70-1.73 billion. For the full year of 2023, the company reaffirmed its guidance for revenues of $6.85-6.91 billion and the adjusted EPS of $4.00 (up or down 3 cents).
Representative Ro Khanna disclosed earlier this month that he sold $1,000 - $15,000 worth of PANW shares on January 09, when the stock closed at $135.08. Similarly, Congresswoman Susie Lee sold some shares in late November.
Palo Alto Networks stock closed at $188.74 on Thursday.