Palo Alto Networks Inc. PANW shares are trading higher Thursday. The cybersecurity company reported fiscal first-quarter earnings results after the market close on Wednesday. Here’s what you need to know.

What To Know: Palo Alto Networks reported revenue of $2.14 billion, surpassing the consensus estimate of $2.12 billion. Quarterly earnings came in at $1.56 per share, beating analyst estimates of $1.48 per share, according to Benzinga Pro.

Revenue was up 14% year-over-year, with remaining performance obligations growing by 20% to $12.6 billion. Additionally, the company’s next-generation security annual recurring revenue rose by 40% year-over-year to $4.5 billion.

“Our Q1 results reinforced our conviction in our differentiated platformization strategy,” said Nikesh Arora, chairman and CEO of Palo Alto Networks.

The company also announced a two-for-one stock split, which is scheduled to take effect on Dec. 16, with a record date of Dec. 12. Shareholders will receive one additional share for each share they held as of the market close on Dec. 13.

Looking ahead, Palo Alto expects second-quarter fiscal 2025 revenue in the range of $2.22 billion to $2.25 billion and adjusted earnings per share between $1.54 and $1.56. For the full fiscal year, the company anticipates revenue between $9.12 billion and $9.17 billion and earnings between $6.26 and $6.39 per share.

Following the print, analysts maintained generally positive ratings, with price target adjustments reflecting the strong performance. Price targets from analysts on Thursday ranged from $370 to $450 per share. Needham and Wells Fargo both raised their targets to $450, while Oppenheimer and RBC Capital maintained price targets of $450.

PANW Price Action: Palo Alto Networks shares were up 2.13% at $401.41 at the time of publication, according to Benzinga Pro.

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