Palo Alto Networks raises FY 21 outlook, beats Q3 estimates

Palo Alto Networks published better-than-expected third quarter financial results on Thursday and raised its outlook for the fiscal year. 

Non-GAAP net income for the quarter was $139.5 million, or $1.38 per diluted share. Revenue grew 24 percent year-over-year to $1.1 billion.

Analysts were expecting earnings of $1.28 per share on revenue of $1.06 billion. 

“The work-from-home shift earlier in the year and recent cybersecurity issues have increased the focus on security,” chairman and CEO Nikesh Arora said in a statement. “Coupled with good execution, this has driven great strength across our business with Q3 billings growth accelerating to 27% year over year. In particular, we saw a number of customers make large commitments to Palo Alto Networks across our three major platforms. We are pleased to be raising our guidance for fiscal year 2021 as we see these trends continuing into our fiscal fourth quarter, bolstering our confidence in our pipeline.”

Billings for the quarter reached $1.3 billion. Deferred revenue grew 30 percent year-over-year to $4.4 billion. 

For the fiscal fourth quarter 2021, the company expects total revenue in the range of $1.165 billion to $1.175 billion, representing year-over-year growth of between 23 percent and 24 percent.

For the fiscal year 2021, the company now expects total revenue in the range of $4.20 billion to $4.21 billion, representing year-over-year growth between 23 percent and 24 percent.