Palo Alto Networks Inc SEC 10-Q Report

Palo Alto Networks Inc, a leading global cybersecurity company, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights significant financial growth and robust business performance, driven by increased adoption of its comprehensive cybersecurity solutions and strategic product launches.

Financial Highlights

Total Revenue: $2,474 million, representing a year-over-year increase of 16% driven by increased adoption of the company's portfolio.

Gross Profit: $1,836 million, with a gross margin of 74.2%, slightly up from 74.1% in the prior year, reflecting a shift in product revenue mix toward software.

Operating Income: $309 million, with an operating margin of 12.5%, down from 13.4% in the prior year due to increased operating expenses.

Net Income: $334 million, reflecting a decrease from $351 million in the prior year, primarily due to increased provision for income taxes.

Net Income Per Share, Basic: $0.49, compared to $0.54 in the prior year, reflecting the impact of increased tax provisions.

Net Income Per Share, Diluted: $0.47, compared to $0.49 in the prior year, reflecting the impact of increased tax provisions.

Business Highlights

Revenue Segments: Product revenue increased by 23% year-over-year, driven by higher demand and enhanced features in on-premise software licenses. Subscription and support revenue grew by 14%, reflecting increased demand for these offerings.

Geographical Performance: Revenue from the Americas increased by 14%, EMEA by 18%, and APAC by 22%, indicating strong global sales growth. The Americas contributed the highest revenue increase due to its larger scale.

New Product Launches: In August 2025, the company introduced PAN-OS 12.1 Orion, providing enterprise-wide quantum security readiness. In October 2025, Prisma AIRS 2.0 was launched, integrating Protect AI, Inc. for comprehensive AI application lifecycle protection.

Future Outlook: The company plans to continue investing in innovation and expanding its global sales force to support growth and enhance its competitive position. The acquisition of CyberArk Software Ltd. is expected to close in the third quarter of fiscal 2026, further strengthening the company's identity security offerings.

SEC Filing: Palo Alto Networks Inc [ PANW ] - 10-Q - Nov. 19, 2025