Palo Alto Networks (NASDAQ:PANW) shares gain nearly 7% on Friday following the company’s reported Q1 results, with EPS of $0.83 coming in better than the Street estimate of $0.69. Revenue was $1.6 billion, beating the Street estimate of $1.55 billion.

Impressive operating margin upside reflects management pushing hard on profitability given the backdrop and was accompanied by fiscal year operating margin and free cash flow raises.

According to the analysts at Deutsche Bank, this was a good quarter for the company, or a great quarter when considering the environment and recent disappointments from respectable peers.

The company expects Q2/23 EPS to be in the range of $0.76-$0.78, compared to the Street estimate of $0.71, and revenue in the range of $1.63-1.66 billion, compared to the Street estimate of $1.65 billion.

For fiscal 2023, the company expects EPS in the range of $3.37-$3.44, compared to the Street estimate of $3.17, and revenue in the range of $6.85-6.91 billion, compared to the Street estimate of $6.87 billion.