Palo Alto Networks Inc (PANW) Q1 2025 Earnings Report

Overview: Palo Alto Networks posted a strong start to fiscal year 2025, underpinned by aggressive platformization and accelerating next-generation security ARR. In Q1, revenue reached $2.139 billion, with NGS ARR growing 40% year over year to $4.52 billion, driven by continued momentum across Network Security, Cloud Security and Cortex/SecOps. Management highlighted a robust go-to-market transition toward platform-based selling and the integration of QRadar SaaS, which contributed to platformization and ARR uplift while guiding to longer-term ARR expansion and higher profitability. The company also reaffirmed a disciplined investment posture, evidenced by margin expansion (60 bps YoY) and significant free cash flow generation, even as it absorbs investments in AI-driven capabilities and platform convergence.