Core Insights - Qualys, Inc. has appointed Bradford L. Brooks to its Board of Directors, bringing extensive experience in cybersecurity and SaaS organizations [1][2] - Brooks will serve on the Board's nominating and governance committee, enhancing the board's oversight and supporting Qualys's growth agenda [2] - The company emphasizes the importance of AI and measurable effectiveness in cybersecurity, particularly through its Enterprise TruRisk Platform [2][4] Company Overview - Qualys, Inc. is a leading provider of cloud-based security, compliance, and IT solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company aims to streamline and automate security and compliance solutions on a single platform, promoting agility and cost savings for organizations [3] Product and Technology - The Qualys Enterprise TruRisk Platform utilizes a single agent to deliver critical security intelligence and automate vulnerability detection, compliance, and protection across various IT environments [4] - Qualys has established strategic partnerships with major cloud service providers, integrating its vulnerability management capabilities into their security offerings [4]

Core Thesis - Qualys, Inc. is viewed as a resilient and profitable cybersecurity company with a strong subscription-based business model, offering a range of services that create high switching costs for customers [1][5]. Business Model and Financials - Qualys operates a cloud-based cybersecurity platform that provides services such as vulnerability management, compliance, patching, and endpoint detection, characterized by a capital-light and scalable SaaS model [2]. - The company boasts gross margins exceeding 70% and generates highly recurring revenue, contributing to strong free cash flow [2]. Market Position and Customer Base - Qualys serves over 10,000 customers across more than 130 countries, including many from the Forbes Global 100, which underscores its scale and trust in the cybersecurity market [3]. - The company's pricing power is enhanced by regulatory and compliance risks associated with replacing its platform, making its solutions indispensable for clients [3]. Competitive Landscape - While facing competition from companies like CrowdStrike, Tenable, Palo Alto, and Microsoft Defender, Qualys differentiates itself through the breadth and integration of its offerings, covering multiple aspects of cybersecurity in a single platform [4]. - Key risks include rapid innovation from competitors and pricing pressure from bundled IT solutions, but Qualys addresses these challenges through automation and a focus on compliance [4]. Investment Perspective - Qualys is considered a reliable long-term investment in the cybersecurity sector, offering steady growth with strong recurring cash flow and minimal downside risk, despite being less flashy than hypergrowth peers [5]. - The company's consistent execution and platform stickiness further enhance its attractiveness as a long-term investment option [5].

Core Insights - Qualys, Inc. will report its financial results for Q3 2025 on November 4, 2025, after market close [1] - A conference call and live webcast will be held on the same day at 5:00 p.m. Eastern Time to discuss the financial results [2] Company Overview - Qualys is a leading provider of cloud-based IT, security, and compliance solutions, serving over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100 [3] - The company offers a platform that automates security and compliance solutions, aiming for improved agility, business outcomes, and cost savings [3] Product and Technology - The Qualys Enterprise TruRisk Platform utilizes a single agent for continuous security intelligence and automates vulnerability detection, compliance, and protection across various IT environments [4] - Qualys has established strategic partnerships with major cloud service providers like Amazon Web Services, Google Cloud Platform, and Microsoft Azure, integrating its capabilities into their security offerings [4]

Core Insights - Qualys, Inc. has introduced enhancements to its Enterprise TruRisk Management (ETM) platform, focusing on proactive risk management to predict and prevent emerging cyber threats, particularly in the context of agentic AI [1][3][9] Group 1: New Capabilities - The enhancements to Qualys ETM include improved identity security for both human and non-human identities, predictive threat analysis, and validation of exposure exploitability, allowing security teams to anticipate cyber risks before breaches occur [1][3] - ETM Identity consolidates visibility and remediation across various identity and access management systems, correlating identity and asset risk into a single Identity TruRisk score, which helps security teams focus on the most exploitable attack paths [5][6] Group 2: Addressing AI-Driven Threats - The rise of AI has led to an increase in the volume and complexity of cyber attacks, necessitating a proactive, intelligence-driven approach to breach prevention tailored to organizations' unique risk profiles [3][4] - Qualys ETM aligns Identity Risk Posture Management with contextual threat intelligence and exposure exploitability validation, enabling measurable risk reduction at an enterprise scale [3][4] Group 3: Enhanced Risk Management Tools - TruLens provides real-time, tailored threat intelligence, allowing organizations to detect, prioritize, and remediate cyber risks more effectively by continuously applying live threat analysis and business impact context [6][7] - TruConfirm validates the exploitability of exposures by executing real-world attack scenarios, enabling security teams to prioritize and mitigate risks more efficiently [8][9] Group 4: Market Position and Availability - Qualys ETM is now generally available, with its new features, including ETM Identity, TruLens, and TruConfirm, available in preview [9][11] - Qualys serves over 10,000 subscription customers globally, including many from the Forbes Global 100 and Fortune 100, indicating a strong market presence [11][12]

Core Insights - Palo Alto Networks (PANW) and Qualys (QLYS) are leading companies in the cybersecurity sector, focusing on different areas of security solutions [1][2] - The cybersecurity market is projected to grow at a CAGR of 12.45% from 2025 to 2030, driven by increasing cyber threats [2] Palo Alto Networks Overview - Palo Alto Networks is recognized for its comprehensive cybersecurity solutions, including next-generation firewalls and cloud security [4] - The company is experiencing growth in areas like Zero Trust and Secure Access Service Edge (SASE), with SASE annual recurring revenues increasing by 35% year over year [5][6] - In Q4 of fiscal 2025, Palo Alto Networks reported a revenue growth rate of 16% and a non-GAAP EPS growth of 27% year over year [8] - However, the company faces challenges such as shortened contract durations and a shift from multi-year to annual payments, impacting revenue stability [7][8] Qualys Overview - Qualys specializes in Vulnerability Management, Detection and Response (VMDR) solutions, with a growing customer base and a net dollar retention rate of 104% [9][10] - The company has expanded its product offerings and enhanced its portfolio, including the launch of the Risk Operations Center and advanced AI security capabilities [10] - Qualys reported a sales growth of 10% and non-GAAP EPS growth of 11% year over year in Q2 of 2025 [13] - The company is also expanding internationally, with a 15% year-over-year growth rate in international revenue, representing 43% of total revenues [12] Valuation and Performance Comparison - Year-to-date, Palo Alto Networks shares have appreciated by 13.9%, while Qualys shares have decreased by 6.5% [14] - Qualys is currently trading at a forward 12-month sales multiple of 6.86X, which is significantly lower than Palo Alto Networks' 12.99X [17] - Qualys holds a Zacks Rank 1 (Strong Buy), making it a more attractive investment compared to Palo Alto Networks, which has a Zacks Rank 3 (Hold) [20][21]

Group 1 - Dan Ives, a prominent tech analyst, forecasts a surge in mergers and acquisitions (M&A) in the technology sector, particularly driven by artificial intelligence (AI) [1][2] - Ives identifies a lenient regulatory environment as a catalyst for easier deal closures, suggesting that both strategic and financial buyers are preparing for increased acquisition activity [2][4] - A comprehensive list of potential M&A targets includes companies like C3.ai Inc., SanDisk Corp., and Lyft Inc., among others [3][5] Group 2 - Major tech firms such as Apple Inc. and IBM are expected to be highly active acquirers in the upcoming M&A wave as they seek to enhance their AI capabilities [4][5] - Recent M&A activity in the industry includes CoreWeave's acquisition of Core Scientific's data centers and Palo Alto Networks' acquisition of CyberArk Software [5][6] - The Dan IVES Wedbush AI Revolution ETF has gained significant investor confidence, surpassing $750 million in assets under management shortly after its launch, reflecting a 30.18% increase since listing [6]

Core Insights - The article highlights Qualys, Inc. (NASDAQ: QLYS) as a potential investment opportunity for those looking to invest like institutional investors [1] Group 1 - Robert F. Abbott has been managing his family's investment accounts since 1995 and has incorporated options trading since 2010, focusing on covered calls and collars with long stocks [1] - Abbott is a freelance writer with a project aimed at providing information for new and intermediate-level mutual fund investors [1] - Abbott holds a Bachelor of Arts and a Master of Business Administration (MBA) degree, indicating a solid educational background in finance [1]

Core Viewpoint - Qualys, Inc. (NASDAQ: QLYS) is recommended as a buy due to its current stock trading at a discount, attributed to concerns over slowing growth, despite positive developments in product adoption and partner execution [1] Group 1: Investment Thesis - The investment approach is fundamentally based, focusing on long-term durability and affordability rather than merely low multiples [1] - The company is characterized by steady long-term growth, lack of cyclicality, and a robust balance sheet, making it an attractive investment opportunity [1] - There is a belief that in certain situations, the potential for future development can outweigh immediate price concerns [1]

Federal Reserve Decision - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25%, marking the first interest rate cut of the year [1][9] - The decision was supported by 11 out of 12 voting members, with expectations of two more rate cuts of 25 basis points each this year and additional cuts in 2026 and 2027 [2] AI Infrastructure Sector - A low-interest-rate environment is expected to benefit high-growth sectors, particularly technology, consumer discretionary, and cryptocurrency [3][9] - The AI infrastructure segment is experiencing significant momentum, driven by strong demand and projected spending that will transform various industries over the next five years, including automation, robotics, healthcare, and cybersecurity [5] Recommended AI Infrastructure Stocks - Five mid-cap AI infrastructure stocks are recommended for investment: UiPath Inc. (PATH), Qualys Inc. (QLYS), Calix Inc. (CALX), TaskUs Inc. (TASK), and InterDigital Inc. (IDCC) [4][9] - Each of these companies has a Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong investment potential [4] Company Highlights UiPath Inc. (PATH) - UiPath offers an end-to-end automation platform with advanced AI capabilities, including generative AI features [10] - Expected revenue and earnings growth rates for the current year are 10.1% and 20.8%, respectively, with a 14.3% improvement in earnings estimates over the last 30 days [11] Qualys Inc. (QLYS) - Qualys is benefiting from the demand for cloud-based cybersecurity solutions, with a balanced customer mix that enhances resilience [12] - The company has expected revenue and earnings growth rates of 8.1% and 4.6%, respectively, with a 0.5% improvement in earnings estimates over the last week [14] Calix Inc. (CALX) - Calix provides cloud and software platforms for communication service providers and has integrated AI into its offerings [15][16] - Expected revenue and earnings growth rates for 2025 are 15.3% and over 100%, respectively, with a 25.6% improvement in earnings estimates over the last 60 days [16] TaskUs Inc. (TASK) - TaskUs specializes in outsourced digital services across various sectors and has formed strategic partnerships to enhance its AI capabilities [17][18] - Expected revenue and earnings growth rates for 2025 are 17.8% and 16.3%, respectively, with a 4.2% improvement in earnings estimates over the last 30 days [20] InterDigital Inc. (IDCC) - InterDigital focuses on technology solutions for mobile and IoT markets, with innovations in AI-powered receiver design for future wireless communications [21][22] - Expected revenue and earnings growth rates for the current year are -6.7% and -6.2%, respectively, with a 5.9% improvement in earnings estimates over the last 30 days [24]

Industry Overview - Cybersecurity has become a top priority for organizations due to the increasing frequency and sophistication of cyberattacks, which threaten financial stability and brand reputation [1] - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.77 billion by 2032, reflecting a robust CAGR of 14.4% [2] Technological Advancements - Traditional security tools are becoming inadequate against modern threats, leading to a shift towards artificial intelligence (AI) for proactive threat detection and response [3] - AI enables companies to analyze large volumes of data, automating detection and response processes, which is essential given the rapid emergence of threats [3] Key Players - CrowdStrike Holdings (CRWD) is a leader in endpoint protection and is leveraging AI to enhance its Falcon platform for real-time threat detection and automated responses [6][7] - Qualys (QLYS) focuses on vulnerability management and cloud security, enhancing its AI capabilities to improve threat detection and remediation [9][10] - Radware (RDWR) provides cybersecurity solutions and is integrating AI to enhance its product offerings, including DDoS protection and traffic management [12][13] Competitive Positioning - CrowdStrike's deep integration of AI not only enhances its competitive edge but also supports sustainable revenue growth, positioning it as a strong buy [8] - Qualys' AI-powered platform is expected to drive customer adoption and long-term revenue growth, also classified as a strong buy [11] - Radware's AI-driven tools improve scalability and customer loyalty, creating opportunities for recurring revenues through subscription services [14]