Palo Alto Networks (PANW) on Monday reported July-quarter earnings and revenue that topped Wall Street targets amid strong growth in large contracts. Guidance for PANW stock came in above expectations as the company also announced its board of directors approved a 3-for-1 stock split.

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Palo Alto said it expects to turn profitable using generally accepted accounting principles (or GAAP) in fiscal 2023. The news sent Palo Alto stock up 5.9% to near 538 in extended trading on the stock market today.

For fiscal 2023, the company forecast adjusted earnings in a range of $9.40 to $9.50 a share, compared with estimates of $9.23.

Palo Alto said it expects revenue in a range of $6.85 billion to $6.9 billion. Palo Alto forecast billings in a range of $8.95 billion to $9.05 billion. Analysts projected revenue of $6.74 billion and billings of $8.56 billion. That correlates to respective growth of roughly 23% and 20%.

Also on Monday, the cybersecurity firm announced that trading for PANW stock on a split-adjusted basis will start on Sept. 14. The company has authorized an additional $915 million in its stock repurchase program.

Reporting after the close, Palo Alto said fiscal fourth-quarter profit rose 49% to $2.39 per share on an adjusted basis. Including acquisitions, revenue rose 27% to $1.6 billion. Analysts expected earnings of $2.28 per share on sales of $1.54 billion.

PANW Stock: Relative Strength Rating At 88 Out Of 99

PANW stock has declined 8% in 2022. It holds a Relative Strength Rating of 88 out of a best-possible 99, according to IBD Stock Checkup.

Meanwhile, the company has spent over $3.4 billion making 10 acquisitions over the past three years. With roots in the “firewall” network security market, Palo Alto aims to build a broad cloud-based security platform.

Firewall appliances protect computer networks by blocking online intrusions and monitoring web-based apps.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns for PANW stock and other issues is one key to investment guidelines.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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