Palo Alto Networks Shares Surge 11% on Q3 Earnings Beat and Raise

Palo Alto Networks (NASDAQ: PANW) rose more than 11% after-hours following the company’s Q3 results, with EPS of $1.79 coming in better than the street estimate of $1.68. Revenue grew 29% year-over-year to $1.4 billion, beating the Street estimate of $1.36 billion. Q3 billings increased 40% year-over-year to $1.8 billion.

"We saw strong top-line growth in Q3, which is a testament to our teams' consistent execution in capitalizing on the strong cybersecurity demand trends," said Nikesh Arora, chairman and CEO of Palo Alto Networks. "On the back of this strength across our portfolio, we are again raising our guidance for the year across revenue, billings and earnings per share."

The company expects Q4/22 EPS in the range of $2.26-$2.29, compared to the consensus of $2.22, and revenue in the range of $1.53-1.55 billion, compared to the consensus of $1.53 billion.

For the full 2022-year, the company expects total revenue of $5.481-$5.501 billion and diluted non-GAAP EPS of $7.43-7.46, versus the consensus of $5.46 billion and $7.29, respectively.

Shares of Palo Alto Networks were down 22% year-to-date into the results.

By Davit Kirakosyan

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