Palo Alto (PANW) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Palo Alto Networks (PANW) reported $2.26 billion in revenue for the quarter ended January 2025, representing a year-over-year increase of 14.3%. EPS of $0.81 for the same period compares to $0.73 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.24 billion, representing a surprise of +0.91%. The company delivered an EPS surprise of +3.85%, with the consensus EPS estimate being $0.78.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: RPO (Remaining Performance Obligation): $13 billion compared to the $12.96 billion average estimate based on six analysts. Revenue- Product: $421.50 million compared to the $390.98 million average estimate based on 13 analysts. The reported number represents a change of +7.9% year over year. Revenue- Subscription and support: $1.84 billion versus $1.84 billion estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +15.9% change. Revenue- Subscription and support- Support: $602.70 million versus $607.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change. Revenue- Subscription and support- Subscription: $1.23 billion compared to the $1.23 billion average estimate based on two analysts. The reported number represents a change of +20.1% year over year. Product gross profit Non-GAAP: $323.30 million versus $308.03 million estimated by 11 analysts on average. Subscription and support gross profit Non-?GAAP: $1.41 billion compared to the $1.42 billion average estimate based on 11 analysts. Subscription and support gross profit GAAP: $1.34 billion compared to the $1.37 billion average estimate based on two analysts. Product gross profit GAAP: $320.20 million versus the two-analyst average estimate of $313.07 million. View all Key Company Metrics for Palo Alto here>>>Shares of Palo Alto have returned +12.9% over the past month versus the Zacks S&P 500 composite's +3.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks