Palo Alto Networks PANW reported first-quarter fiscal 2021 non-GAAP earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate $1.34. Moreover, the bottom line compared favorably with the year-ago quarter’s earnings of $1.05 per share.The company’s revenues of $946 million improved 23% year over year. The figure also beat the Zacks Consensus Estimate of $920.7 million.The top line was primarily aided by several deal wins and increased adoption of the company’s next-generation security platforms on the rise in remote-working trend and heightened need for stronger security. Growing traction in the Prisma and Cortex offerings also acted as a tailwind.Palo Alto Networks, Inc. Price, Consensus and EPS Surprise Palo Alto Networks, Inc. price-consensus-eps-surprise-chart | Palo Alto Networks, Inc. QuoteQuarterly DetailsProduct revenues increased 2.6% year over year to $237.3 million and contributed to 25% of the total revenues. The company’s subscription and support revenues, which accounted for 75% of the total revenues, improved 31.1% to $708.7 million.Further, billings improved 21% year over year to $1.1 billion. Deferred revenues jumped 31% to $3.9 billion.Palo Alto’s non-GAAP gross margin contracted 80 basis points (bps) on a year-over-year basis to 75.8%. However, non-GAAP operating margin improved 590 bps to 21.7% mainly due to lower operating expenses as a percentage of sales. Operating expenses as a percentage of revenues shrunk 670 bps to 54.1%.Palo Alto exited the fiscal first quarter with cash, cash equivalents and short-term investments of $3.22 billion compared with $3.75 billion recorded at the end of the previous quarter. The company’s balance sheet does not carry any long-term debt.During the quarter, it generated cash flow from operations of $534.9 million and free cash flow of $505.3 million.GuidanceFor second-quarter fiscal 2021, Palo Alto anticipates year-over-year revenue growth of 19-21%, which comes in between $975 million and $990 million. Billing growth is anticipated between 17% and 19%, ($1.17 billion-$1.19 billion).Non-GAAP earnings per share are estimated in the range of $1.42-$1.44.For fiscal 2021, the company projects revenue in the $4.09 billion and $4.14 billion, indicating year-over-year growth of 20%-21%. Billing growth is anticipated between 18% and 19%, ($5.08 billion-$5.13 billion).Palo Alto forecasts fiscal 2021 adjusted earnings between $5.70 and $5.80 per share.Zacks Rank & Stocks to ConsiderPalo Alto currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the broader technology sector include Arrow Electronics ARW, NVIDIA NVDA and Covetrus CVET, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The long-term earnings growth rate for Arrow, NVIDIA and Covetrus is currently pegged at 8.5%, 20.1%, and 20.1%, respectively.The Hottest Tech Mega-Trend of AllLast year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Covetrus, Inc. (CVET): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research