Palo Alto Networks (PANW) reported $2.26 billion in revenue for the quarter ended January 2025, representing a year-over-year increase of 14.3%. EPS of $0.81 for the same period compares to $0.73 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.24 billion, representing a surprise of +0.91%. The company delivered an EPS surprise of +3.85%, with the consensus EPS estimate being $0.78.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• RPO (Remaining Performance Obligation): $13 billion compared to the $12.96 billion average estimate based on six analysts.
• Revenue- Product: $421.50 million compared to the $390.98 million average estimate based on 13 analysts. The reported number represents a change of +7.9% year over year.
• Revenue- Subscription and support: $1.84 billion versus $1.84 billion estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +15.9% change.
• Revenue- Subscription and support- Support: $602.70 million versus $607.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change.
• Revenue- Subscription and support- Subscription: $1.23 billion compared to the $1.23 billion average estimate based on two analysts. The reported number represents a change of +20.1% year over year.
• Product gross profit Non-GAAP: $323.30 million versus $308.03 million estimated by 11 analysts on average.
• Subscription and support gross profit Non-?GAAP: $1.41 billion compared to the $1.42 billion average estimate based on 11 analysts.
• Subscription and support gross profit GAAP: $1.34 billion compared to the $1.37 billion average estimate based on two analysts.
• Product gross profit GAAP: $320.20 million versus the two-analyst average estimate of $313.07 million.

View all Key Company Metrics for Palo Alto here>>>

Shares of Palo Alto have returned +12.9% over the past month versus the Zacks S&P 500 composite's +3.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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