Palo Alto Networks reported strong financial results for Q1 FY2025, with total revenue increasing 13.9% year-over-year to $2.14 billion. Net income surged 81% to $350.7 million, while operating income grew to $286.5 million with a 13.4% operating margin. Subscription and support revenue, which accounted for 83.5% of total revenue, rose 16.1% to $1.79 billion.The company demonstrated robust operational performance with cash flow from operations of $1.51 billion. Product revenue increased 3.7% to $353.8 million, while Next-Generation Security ARR reached $4.5 billion. The company maintained strong gross margins at 74.1% despite increased investments in cloud infrastructure and research development.During the quarter, Palo Alto Networks completed the acquisition of IBM's QRadar assets for $1.1 billion to accelerate its Cortex business growth. The company also continued its strategic focus on platformization and AI-driven security solutions, launching new capabilities including Prisma Access Browser and enhanced OT Security features. The company's share repurchase program had $1.0 billion remaining as of October 31, 2024.

Palo Alto Networks reported strong financial results for Q1 FY2025, with total revenue increasing 13.9% year-over-year to $2.14 billion. Net income surged 81% to $350.7 million, while operating income grew to $286.5 million with a 13.4% operating margin. Subscription and support revenue, which accounted for 83.5% of total revenue, rose 16.1% to $1.79 billion.The company demonstrated robust operational performance with cash flow from operations of $1.51 billion. Product revenue increased 3.7% to $353.8 million, while Next-Generation Security ARR reached $4.5 billion. The company maintained strong gross margins at 74.1% despite increased investments in cloud infrastructure and research development.During the quarter, Palo Alto Networks completed the acquisition of IBM's QRadar assets for $1.1 billion to accelerate its Cortex business growth. The company also continued its strategic focus on platformization and AI-driven security solutions, launching new capabilities including Prisma Access Browser and enhanced OT Security features. The company's share repurchase program had $1.0 billion remaining as of October 31, 2024.