Palo Alto Networks Inc (NASDAQ:PANW) stock rose 0.51% (As on November 21, 11:31:52 AM UTC-4, Source: Google Finance) after the company reported mixed results in its fiscal 2025 first quarter. During the quarter, Palo Alto introduced artificial intelligence-powered operational technology solutions and expanded its secure access service edge portfolio. The quarter saw the release of Strata Copilot, a service designed to enhance network security operations by providing real-time insights, guided actions and natural language interfaces for threat detection and remediation trained on nearly 50,000 vetted sources. In cloud and automation, the company reported over 15% growth in its Prisma Cloud and Cortex customer base, with significant traction for AI copilots and automated data security remediation tools. Cortex XSIAM saw strong growth, adding more than 400 new machine learning detection modules and capturing over $80 million in QRadar-to-XSIAM transitions. In the quarter, Palo Alto Networks hit $4.52 billion in annual recurring income, up 40% year-over-year, while remaining performance obligations, a metric that represents the total value of contracted revenue that the company has not yet recognized, rose 20% from a year ago, to $12.6 billion. Non-GAAP net income for the fiscal first quarter 2025 was $544.9 million compared with non-GAAP net income of $466.3 million for the fiscal first quarter 2024.

PANW in the first quarter of FY 25 has reported the adjusted earnings per share of $1.56, beating the analysts’ estimates for the adjusted earnings per share of $1.48. The company had reported the adjusted revenue growth of 14 percent to $2.14 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $2.12 billion.

Additionally, the company announced that its board of directors has approved a two-for-one forward stock split of the company’s outstanding shares of common stock.

For its fiscal second quarter, Palo Alto Networks expects to see adjusted earnings per share of $1.54 to $1.56 on revenue of $2.22 billion to $2.25. At the midpoint, earnings were in line with the $1.55 expected by analysts, while revenue was slightly ahead of an expected $2.23 billion. For the fiscal second quarter 2025, PANW expects Next-Generation Security ARR of $4.70 billion to $4.75 billion, representing year-over-year growth of between 35% and 36% and Remaining performance obligation of $12.9 billion to $13.0 billion, representing year-over-year growth of between 20% and 21%.

For the full fiscal year, the company expected adjusted earnings per share of $6.29 to $6.39 on revenue of $9.12 billion to $9.17 billion. Analysts had been expecting $6.28.