Palo Alto Networks said total revenue for Q3 of fiscal 2025 was $2.3 billion, representing year-over-year growth of 15.3% compared to $2.0 billion in the same period of the prior year. The company said this growth reflects increased adoption of its portfolio, which consists of product, subscriptions, and support.

1. 01

   Palo Alto Networks said total revenue for Q3 of fiscal 2025 was $2.3 billion, representing year-over-year growth of 15.3% compared to $2.0 billion in the same period of the prior year. The company said this growth reflects increased adoption of its portfolio, which consists of product, subscriptions, and support.

2. 02

   Palo Alto Networks repaid in cash $150.9 million and $582.3 million in aggregate principal amount of the 2025 Notes during the 3 and 9 months ended April 30, 2025, respectively. As of April 30, 2025, the outstanding balance was $383.3 million, maturing on June 1, 2025.

3. 03

   Palo Alto Networks said product gross margin decreased for both the 3 and 9 months ended April 30, 2025 compared to the same periods in the prior year primarily due to an increase in inventory reserves. The company said subscription and support gross margin decreased primarily due to an increase in costs related to its cloud-based offerings, with cloud hosting service costs increasing $55.7 million and $141.4 million, respectively.

4. 04

   Palo Alto Networks said cash flow from operations for the 9 months ended April 30, 2025 was $2.7 billion, a slight decrease of $49.7 million compared to the same period in the prior year. The company cited increased cash expenditures for business growth as a factor in the decrease, partially offset by increased customer collections.

Key figures

Quarter ended April 30, 2025

Revenue

$2.3B

Operating income

$219M

Net income

$262M

EPS

$0.37

Gross profit

$1.7B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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