Filing Flows › Palo Alto Networks (PANW) › Q3 FY25
Palo Alto Networks (PANW) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 21, 2025
Palo Alto Networks (PANW) reported revenue of $2.3B for the third quarter fiscal 2025 (Q3 FY25), +15% from a year earlier and +1% from the quarter before. Operating margin was 9.6%, net earnings $262M (11.4% of revenue).
Palo Alto Networks, Q3 FY25: revenue $2.3B (+15% year over year), operating margin 9.6%, net earnings $262M, operating cash flow $628M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.3B | +1% | +15% |
| Gross profit | $1.7B | +0.7% | +14% |
| Operating profit | $219M | -9% | +24% |
| Net earnings | $262M | -2% | -6% |
| Operating cash flow | $628M | +13% | +19% |
| Free cash flow | $560M | +10% | +14% |
What changed
Revenue was $2.3B in Q3 FY25, up 15% year over year and up 1% from the previous quarter. Subscription was the largest line at 54% of revenue. Subscription added $0.19B year over year (up 18%), 62% of the total change.
Gross margin was 73.0%, down 1.2 points from a year earlier. Operating profit was $0.22B, a 9.6% margin (up 0.7 points year over year). Of the extra revenue versus a year earlier, 14% reached operating profit, above the 9% margin then. Operating expenses grew 12% against revenue growth of 15%. The fastest-growing cost line was General & admin (+38%). Net earnings were $0.26B, down 6% year over year. The effective tax rate was 15.8%. Non-operating items added $0.09B, 30% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $0.63B (up 19% year over year), 240% of net earnings. Non-cash charges added back $0.09B of depreciation and amortization and $0.33B of share-based compensation. Working capital and other items used $0.05B. Capital expenditures of $0.07B left free cash flow of $0.56B.
Questions
What was Palo Alto Networks' revenue in the third quarter fiscal 2025?
Palo Alto Networks (PANW) reported revenue of $2.3B for the third quarter fiscal 2025 (Q3 FY25), +15% from a year earlier and +1% from the quarter before.
Was Palo Alto Networks profitable in the third quarter fiscal 2025?
Operating profit was $219M (9.6% of revenue) and net earnings $262M.
Source: Palo Alto Networks 10-Q on SEC EDGAR.