Palo Alto Networks Q4 Earnings Preview: Strong 2025 Outlook and CrowdStrike Outage Impact
Key Takeaways
- Palo Alto Networks reports fiscal fourth-quarter earnings on Monday, Aug. 19.
- Analysts expect the cybersecurity company to report revenue and earnings growth from the year-ago period.
- Investors will likely be watching for full-year 2025 guidance and potential updates on the effects of the CrowdStrike outage.
Palo Alto Networks (PANW) is set to report results for its fiscal fourth quarter after markets close on August 19, with investors likely watching for a strong 2025 outlook and updates on its “platformization” strategy.
Analysts project revenue to grow to $2.16 billion from $1.95 billion a year ago, according to estimates compiled by Visible Alpha. Net income is expected to come in at $232.9 million, or 66 cents per share, a slight increase from the year-ago period but also a sequential drop.
| Analyst Estimates for Q4 2024 | Q3 2024 | Q4 2023 | |
| Revenue | $2.16 billion | $1.99 billion | $1.95 billion |
| Diluted Earnings Per Share | 66 cents | 79 cents | 64 cents |
| Net Income | $232.9 million | $278.8 million | $227.7 million |
Key Metrics: 2025 Outlook
Spending fatigue among Palo Alto Networks’ customers has been a major theme of the company’s results in recent quarters, signaling headwinds in the cybersecurity industry. Palo Alto Networks’ guidance has been used as an indicator for the sector.
The company is expected to provide guidance for the full fiscal 2025 with analysts expecting revenue of $9.09 billion. Last year, Palo Alto offered outlooks for billings, revenue, net income per share, and free cash flow margins.
Business Spotlight: CrowdStrike Outage Impact
Palo Alto Networks has been leaning into its platformization efforts, where it consolidates its cybersecurity services on its platform and bundles offers, a bid to become a one-stop shop and offset spending fatigue.
While Palo Alto Networks has indicated that platformization has been positively received by customers, the recent global outage caused by a faulty CrowdStrike (CRWD) update could raise questions about the outlook for the market.
The company could also comment on whether the incident might lead to customers leaving CrowdStrike in search of alternative cybersecurity providers. Analysts have said Palo Alto Networks could gain customers.
Palo Alto shares were little changed Monday. The stock is up more than 12% in 2024, though off highs seen in February.
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