Palo Alto Networks Q4 Earnings: Profit Declines but Tops Estimates Amid Leadership Shift

Palo Alto Networks delivered mixed fiscal Q4 results, with GAAP profit falling to $253.8 million from $357.7 million year-over-year. Yet the cybersecurity firm surpassed Wall Street expectations, posting adjusted EPS of $0.95 against a $0.89 consensus.

Revenue growth remained robust at 16%, climbing to $2.536 billion as demand for subscription security services showed no signs of weakening. Next-Generation Security ARR surged 32% to $5.6 billion, while total performance obligations expanded 24% to $15.8 billion.

The earnings report coincided with a leadership transition, as founder and CTO Nir Zuk retired after 15 years. His successor, Lee Klarich, inherits a company demonstrating remarkable resilience in enterprise cybersecurity spending despite macroeconomic headwinds.