We’re seeing XSIAM transform customer security operations and significantly improve their security outcomes. This includes significant reductions in the meantime to detect and resolve security incidents. On the back of potential customers, hearing about early XSIAM success, our pipeline for XSIAM is over $1 billion of which $500 million was created just in this past quarter. As I began my remarks, Q1 was the first quarter of us delivering on the three-year plan we presented in August. We’re driving profitable growth, investing in innovation, next-generation security, and the industry’s largest dedicated security go-to-market organization, at the same time, leveraging the scale of Palo Alto Networks. Demand for cyber security is strong given the backdrop of attacks, the ever increasing focus and scrutiny around cyber risk, execution continues to be paramount given the macro conditions and we will continue to adapt and respond to changes in the environment.
We will manage for long-term growth, operating margin, and free cash flow, and ensure we continue to transform the business and build revenue predictably. You will also see this through RPO and most importantly our current RPO. Our long-term forecast thesis remains intact whilst we expect short-term variability in billings, we don’t expect this to have a meaningful impact on our ability to deliver our three-year targets. With that, I will turn it over Dipak.
Dipak Golechha: Thank you, Nikesh, and good afternoon, everyone. I’ll cover the specifics of our Q1 results, additional details on drivers behind the results and our Q2 and fiscal year 2024 guidance. For Q1, revenue was $1.88 billion and grew 20%. Product revenue grew 3%, total service revenue grew 25%, with subscription revenue of $988 million, growing 29%, and support revenue of $549 million, growing 17%. We saw consistent revenue contribution across all theaters, Americas grew 20%, EMEA was up 19%, and JPAC grew 23%. The strength of our next-generation capabilities continues to drive our results with NGS ARR exceeding $3 billion for the first time and growing 53%. We saw strong contributions across the portfolio in Q1. We delivered total billings of $2.02 billion, up 16%, total deferred revenue in Q1 was $9.4 billion, an increase of 32%.
Remaining performance obligation or RPO was $10.4 billion, increasing 26%, with current RPO just under half of our IPO. As Nikesh mentioned, we saw the rising cost of money have an important and incremental impact on customer behavior in Q1. We’re responding to this in the ways we have discussed previously, including using annual billing plans, financing through PANFS, and partner financing. In Q1, this had a negative impact on our billings, although as you can see, we saw strength in NGS ARR and revenue. Our non-GAAP earnings per share was significantly ahead of our guidance, growing 66%. This was driven primarily by the significant increase in our non-GAAP operating margins, which expanded 760 basis points year-over-year. We continue to benefit from the scale inherent in our business, especially as some of our next-generation security offerings scale.
We again delivered strong cash flow in Q1 with trailing 12-month adjusted free cash flow of $3 billion, achieving trailing 12-month free cash flow margins of 41%. Moving beyond the top line, gross margin for Q1 of 78% increased 370 basis points year-over-year. We again saw year-over-year improvements in product margins with the Normalization of the supply chain environment. Service gross margin improved to 78% as our new offerings continue to gain scale. Our operating margin expanded by 760 basis points in Q1 as we saw higher gross margins and efficiencies across our three operating expense lines. We are pleased with our operating efficiency progress against our medium-term targets. We continue to make significant investments to support our top-line growth expectations, including investments in -product and engineering, building sales capability, and supporting our ecosystems in our go-to-market organization.
Turning to the balance sheet and cash flow statements. We ended Q1 with cash equivalents and investments of $6.9 billion. Q1 cash flow from operations was $1.526 billion with the total adjusted free cash flow of $1.489 billion this quarter. As is typical for our Q1, this cash flow performance was primarily driven by strong collections in the prior quarter based on the strength of our Q4 bookings – sorry, collections in the quarter but based on the strength of our Q4 bookings. Over the last several weeks, we announced that we have entered into definitive agreements to acquire two companies. On October 31, we announced our intent to acquire Dig Security Solutions for approximately $232 million in cash, excluding the value of replacement equity awards.
On November 6, we announced our intent to acquire Talon Cyber Security for approximately $435 million, excluding value of replacement equity awards and an inclusive of cash on Talon’s balance sheet at closing. We expect both transactions will close in our second quarter of fiscal year ’24. During Q1, we repurchased approximately 300,000 shares on the open market at an average price of approximately $227 per share for a total consideration of $67 million. As a reminder, our share repurchase program is opportunistic and we’re committed to returning cash to shareholders over the medium-term. Stock-based compensation expense declined by 250 basis points as a percent of revenue year-over-year. As expected, stock-based compensation ticked up slightly as a percent of revenue quarter-over-quarter with the issuance of a portion of our fiscal year ’24 grounds.
