Palo Alto Networks 2Q Net Income Soars on Tax Benefit

By Denny Jacob

Palo Alto Networks posted a surge in its bottom line in the latest quarter, boosted in part by a net tax benefit.

The cybersecurity company logged net income of $1.75 billion, or $4.89 a share, for the fiscal second quarter ended Jan. 31, up from $84.2 million, or 25 cents a share, a year earlier. Adjusted earnings were $1.46 a share, above analysts' estimates of $1.30 a share.

Net income for the quarter included a roughly $1.5 billion net tax benefit from a release of the company's valuation allowance.

Revenue climbed to $1.98 billion from $1.66 billion. Analysts polled by FactSet expected $1.97 billion.

"We are activating our accelerated platformization and consolidation strategy, as well as our AI leadership strategy," Chief Executive Nikesh Arora said.

Palo Alto forecast revenue between $1.95 billion and $1.98 billion as well as adjusted earnings per-share in the range of $1.24 and $1.26 for the third quarter. Analysts polled by FactSet expected $2.04 billion in revenue and $1.29 a share in adjusted earnings.

For fiscal 2024, the company cut its revenue outlook to between $7.95 billion and $8 billion versus its prior guidance in the range of $8.15 billion and $8.2 billion. It guided for adjusted earnings per-share between $5.45 and $5.55, up from its previous outlook in the range of $5.40 and $5.53.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

February 20, 2024 16:41 ET (21:41 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.