Filing Flows › Palo Alto Networks (PANW) › Q2 FY25
Palo Alto Networks (PANW) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Feb 14, 2025
Palo Alto Networks (PANW) reported revenue of $2.3B for the second quarter fiscal 2025 (Q2 FY25), +14% from a year earlier and +6% from the quarter before. Operating margin was 10.7%, net earnings $267M (11.8% of revenue).
Palo Alto Networks, Q2 FY25: revenue $2.3B (+14% year over year), operating margin 10.7%, net earnings $267M, operating cash flow $557M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.3B | +6% | +14% |
| Gross profit | $1.7B | +5% | +12% |
| Operating profit | $241M | -16% | +350% |
| Net earnings | $267M | -24% | -85% |
| Operating cash flow | $557M | -63% | -19% |
| Free cash flow | $509M | -65% | -22% |
What changed
Revenue was $2.3B in Q2 FY25, up 14% year over year and up 6% from the previous quarter. Subscription was the largest line at 55% of revenue. Subscription added $0.21B year over year (up 20%), 73% of the total change.
Gross margin was 73.5%, down 1.3 points from a year earlier. Operating profit was $0.24B, a 10.7% margin (up 8.0 points year over year). Of the extra revenue versus a year earlier, 66% reached operating profit, above the 3% margin then. Operating expenses fell 0% while revenue rose 14%. The fastest-growing cost line was Research & development (+13%). Net earnings were $0.27B, down 85% year over year. The effective tax rate was 17.8%. Non-operating items added $0.08B, 26% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.56B (down 19% year over year), 209% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.32B of share-based compensation. Working capital and other items used $0.12B. Capital expenditures of $0.05B left free cash flow of $0.51B.
Questions
What was Palo Alto Networks' revenue in the second quarter fiscal 2025?
Palo Alto Networks (PANW) reported revenue of $2.3B for the second quarter fiscal 2025 (Q2 FY25), +14% from a year earlier and +6% from the quarter before.
Was Palo Alto Networks profitable in the second quarter fiscal 2025?
Operating profit was $241M (10.7% of revenue) and net earnings $267M.
Source: Palo Alto Networks 10-Q on SEC EDGAR.