Palo Alto Networks (NYSE: PANW) reported its second quarter financial results for fiscal year 2018 and beat analysts’ estimates in both revenue and earnings. Shares were trading 6 percent higher during Tuesday’s pre-market hours.
For the second quarter, Palo Alto reported revenue of $542.4 million, increasing 28 percent year over year, and beating analysts’ estimates of $525 million. The company reported a non-GAAP EPS of $0.86, beating analysts’ estimates of $0.79.
Palo Alto’s product business reported revenue of $202.2 million, increasing from $168.8 million the year prior. Subscription and support revenue for the quarter was $340.2 million, increasing from $253.8 million a year prior.
The company added approximately 3,000 new additional customers due to its service expansions into Europe and updated protection to cloud platforms such as Google, Alphabet Inc (NASDAQ: GOOGL) Cloud, Amazon.com, Inc. (NASDAQ: AMZN)Web Services and Azure.
"We delivered a strong fiscal second quarter with total revenue growing 28 percent year over year to $542.4 million as we saw robust new customer acquisition and expansion in existing accounts," said Mark McLaughlin, chief executive officer of Palo Alto Networks.
“We continue to harness the power of innovation to introduce new technology and disrupt traditional consumption models as we help customers solve their most complex security challenges and embrace the benefits of the digital age."
For the third quarter of 2018, Palo Alto forecasts revenue in the range of $538 to $548 million, representing a 25 percent to 27 percent increase, and an EPS between $0.94 and $0.96. Analysts are forecasting revenue of $532.7 million and an EPS of $0.81.