Palo Alto Networks (PANW) Drops 3.77% Despite Revenue Beat

Palo Alto Networks' stock price dropped 3.77% in pre-market trading on May 21, 2025, following the release of its Q3 financial report. The company reported a 14.51% year-over-year increase in revenue for the first three quarters of the fiscal year, reaching $66.85 billion. However, net income for the same period decreased by 60.35% to $8.80 billion, and earnings per share fell to $1.33 from $3.50 the previous year.

Palo Alto Networks' Q3 revenue of $22.89 billion exceeded analyst expectations of $22.8 billion. The company also raised its full-year revenue guidance to $91.7 billion to $91.9 billion, up from the previous range of $91.4 billion to $91.9 billion. For the fourth quarter, Palo Alto Networks anticipates revenue between $24.9 billion and $25.1 billion, slightly below analyst estimates of $25.0 billion.

Despite beating earnings and revenue estimates, Palo Alto Networks' stock price declined in after-hours trading. This drop can be attributed to the company's lower-than-expected earnings per share and the overall market sentiment. The company's outlook for the next quarter also met expectations, with growth projections of 19% to 20%.