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Palo Alto Networks (PANW) Stock Moves 9.6%: What You Should Know

Palo Alto Networks (PANW) shares are trading higher by 9.6% on Wednesday after the company reported strong third-quarter earnings and provided an upbeat outlook for the current quarter.

The cybersecurity company reported non-GAAP earnings of $1.45 per share, beating the Zacks Consensus Estimate of $1.32 per share. Revenue also exceeded expectations, coming in at $913.2 million compared to the consensus estimate of $882.5 million.

The strong quarterly performance was driven by a 24% year-over-year increase in total revenue, which was fueled by a 26% increase in product revenue. The company's billings also grew 24% year-over-year, reaching $1.1 billion.

Looking ahead, Palo Alto Networks provided guidance for the current quarter that was also stronger than expected. The company expects non-GAAP earnings of $1.45 to $1.50 per share, compared to the Zacks Consensus Estimate of $1.37 per share. Revenue is expected to come in between $930 million and $950 million, compared to the consensus estimate of $921.5 million.

The strong quarterly performance and guidance sent Palo Alto Networks' shares surging in early trading, with the stock up 9.6% as of this writing. The move higher has pushed the stock's year-to-date gain to over 50%.