Core Insights - Zscaler operates as a cloud security platform that facilitates secure internet access for users by employing a zero trust model, eliminating the need for traditional on-premises firewalls or VPNs for remote employees [1] Company Overview - Zscaler provides a cloud-based security solution that acts as a switchboard between users and the internet, enhancing security protocols for remote work environments [1] Investment Background - The founder of Tradition Investment Management, Benjamin Halliburton, has a notable investment background, having been recognized as "PSN Manager of the Decade" for both All-Cap and Dividend Value categories in different decades [1]

Nvidia is collaborating with several companies to bring accelerated computing and artificial intelligence to cybersecurity systems in the energy, manufacturing, transportation and utilities sectors.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content ...

Key Takeaways Zscaler is set to post Q2 fiscal 2026 results with revenues projected around $798M, up 23% year over year.ZS expects growth from AI security demand and momentum in its Zero Trust Everywhere platform.Zscaler faces tight IT budgets and slower legacy ZIA/ZPA growth, raising reliance on newer products.Zscaler (ZS) is scheduled to report second-quarter fiscal 2026 results on Feb. 26, after market close.For the fiscal second quarter, Zscaler projects total revenues between $797 million and $799 mill ...

Akamai Guardicore Segmentation and NVIDIA BlueField integration ends the long-standing trade-off between advanced security and system performance for energy, manufacturing, and transportation sectorsCAMBRIDGE, Mass., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Akamai (NASDAQ: AKAM) has announced a new solution powered by NVIDIA to protect most vital systems from increasingly sophisticated cyberattacks. By combining Akamai Guardicore Segmentation software with NVIDIA BlueField Data Processing Units (DPU), the companie ...

RESTON, Va., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Axonius Federal Systems LLC (AFS), the asset intelligence platform for unified security operations and exposure management for the public sector, today announced the appointment of Jared Vichengrad as senior vice president and general manager. Reporting directly to the AFS Board of Directors, Vichengrad will lead the company’s dedicated federal organization, overseeing strategy, execution, and growth across the U.S. federal market. Vichengrad brings more than 2 ...

Core Insights - Palo Alto Networks (PANW) and Cisco Systems (CSCO) are significant players in the cybersecurity sector, with PANW focusing on next-generation firewalls, cloud security, and AI-driven threat detection, while CSCO emphasizes Threat Intelligence, Detection, and Response offerings, including Secure Access Service Edge (SASE) and Network Security [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2031, driven by increasing complex attacks such as credential theft and social engineering [2] Company Analysis: Palo Alto Networks (PANW) - PANW is recognized as a leader in cybersecurity, providing comprehensive solutions for network security, cloud security, and endpoint protection [4] - The company’s SASE segment is its fastest-growing area, with Annual Recurring Revenues (ARR) increasing by 40% year-over-year in Q2 of fiscal 2026 [5] - A significant deal worth over $50 million was secured with a global automotive leader for a major security transformation, highlighting PANW's strong market position [6] - PANW faces challenges from integration and acquisition-related costs, including a $25 billion acquisition of CyberArk and a $3.35 billion acquisition of Chronosphere, leading to increased costs and potential profitability impacts [7] - The issuance of 112 million shares as part of the CyberArk deal is expected to cause significant equity dilution, with EPS guidance for fiscal 2026 revised down to $3.65-$3.70 from $3.80-$3.90 [8] Company Analysis: Cisco Systems (CSCO) - CSCO is making steady advancements in its security business, with new products like Secure Access and AI Defense gaining traction, now representing about one-third of its security portfolio [9] - The company added 2.5 million Secure Access users in Q2 of fiscal 2026, with new customer acquisitions contributing significantly to new bookings [11] - CSCO has reported three consecutive quarters of double-digit growth in firewall units, supported by new high-end firewall platforms [12] - The company is embedding AI deeper into its security offerings, enhancing its capabilities to address advanced threats [12] - CSCO's earnings estimates for fiscal 2026 and 2027 have been revised upward, with current estimates at $4.13 and $4.46, respectively [17] Market Performance - Over the past six months, CSCO shares have increased by 17.2%, while PANW shares have decreased by 17.7% [19] - CSCO is trading at a forward sales multiple of 4.95X, which is lower than PANW's 9.31X, making CSCO more attractive for value-seeking investors [21] Conclusion - The analysis suggests that CSCO presents a more compelling investment opportunity due to its steady execution, strong product adoption, and favorable earnings revisions, while PANW faces near-term risks from integration costs and share dilution [23][24]

Core Insights - Kyndryl has launched its first Cyber Defense Operations Center in Bengaluru, India, aimed at unifying network and security operations to enhance resilience and incident response [1] - The new center addresses the increasing complexity of IT environments, driven by AI-related cyber risks and the demand for continuous service delivery [1] - Only 31% of organizations are prepared for external business risks, with technology complexity being a significant barrier to scaling AI [1] Group 1: Cyber Defense Operations Center - The Cyber Defense Operations Center integrates network and security operations into a single operating model, providing global customers with expertise in cybersecurity and network operations [1] - The center offers end-to-end services, including advisory, design, implementation, and managed operations, to help enterprises modernize their IT environments [1] - Kyndryl's approach includes automated operations, role-based dashboards, and AI-enabled assessment services to enhance visibility and collaboration [1] Group 2: Market Context and Demand - Enterprises are facing faster and more intelligent cyber risks due to the rise of agentic AI and a shortage of skilled talent to manage these risks [1] - Kyndryl plans to expand the Cyber Defense Operations Center beyond India to meet growing global demand for integrated operating models [1] - The center is part of Kyndryl's broader portfolio of network and security services designed for the AI era, including advanced data center networking and secure access service edge (SASE) [1]

Core Insights - The Unit 42 2026 Global Incident Response Report highlights that AI, attack surface complexity, and identity weaknesses are primary drivers of cyber breaches, with adversaries leveraging AI to accelerate attack speeds by 4x over the past year [1] Group 1: Attack Trends - Attacks involving third-party SaaS applications have surged 3.8x since 2022, now accounting for 23% of all attacks as threat actors exploit OAuth tokens and API keys for lateral movement [1] - 48% of attacks involve the browser, indicating that routine web sessions are weaponized to harvest credentials and bypass local controls [1] - 65% of initial access is driven by identity-based techniques, such as social engineering and credential misuse, while vulnerabilities account for initial access in 22% of all attacks [1] Group 2: Attack Complexity - 87% of attacks span two or more attack surfaces, blending activities across endpoints, cloud, SaaS platforms, and identity systems, with Unit 42 tracking activity across as many as 10 different fronts simultaneously [1] - The time from initial access to data exfiltration has plummeted to just 72 minutes in the fastest attacks, representing a 4x increase in speed over the past year [1] Group 3: Recommendations for Defense - To counter the increasing complexity of attacks, organizations are advised to adopt a unified platform approach that eliminates implicit trust and continuously verifies every interaction [1] - It is recommended to use secure browser technology and active exposure management to protect the modern workspace and unmanaged devices [1] - Centralizing the management of human, machine, and agentic identities is crucial to close governance gaps and stop credential-based exploits [1]

Core Insights - Zscaler, Inc. (ZS) shares have declined 38.5% over the past six months, underperforming the Zacks Computer and Technology sector, which rose by 10.4% [1][8] - The company's stock drop is attributed to macroeconomic headwinds, including inflation, high interest rates, and cautious enterprise IT spending, along with increasing competition in the Zero Trust cybersecurity space [4][10] Financial Performance - Zscaler reported a 26% year-over-year revenue growth to $788 million in Q1 fiscal 2026, achieving a record operating margin of 22% [8][11] - The company has a growing customer base, with 698 customers generating $1 million or more in annual recurring revenues (ARR), including a significant portion from Fortune 500 and Global 2000 companies [12] Competitive Positioning - Zscaler's forward 12-month price-to-sales (P/S) ratio is 7.49, which is higher than the sector average of 6.54, indicating a premium valuation [5] - Compared to competitors, Zscaler trades at a lower P/S multiple than Palo Alto Networks (10.22) and Fortinet (8.58), but higher than Cisco Systems (5.46) [9] Growth Drivers - Zscaler's AI Security, Zero Trust, and Data Security units have crossed the $1 billion ARR milestone, indicating strong growth potential [17] - AI Security alone reached $400 million ARR and is expected to exceed $500 million in fiscal 2026, driven by enterprise adoption of AI technologies [18][19] - The Z-Flex program has generated over $175 million in total contract value bookings in Q1 fiscal 2026, reflecting a 70% sequential increase and encouraging long-term commitments from customers [20] Long-Term Outlook - Despite current challenges, Zscaler's investments in AI and innovative cybersecurity capabilities position the company for sustained growth [21] - The Zacks Consensus Estimate indicates strong double-digit revenue and earnings per share growth for fiscal 2026 and 2027 [13]

Core Insights - Leidos is accelerating the migration of eight additional Defense Agencies to DODNet, enhancing user experience and advancing Zero Trust compliance [1] - The transition will involve over 100,000 users and is part of the $11.5 billion, 10-year Defense Enclave Services program [1] - This initiative aims to achieve greater savings and efficiencies through enterprise IT consolidation, strengthening security and mission outcomes [1] Company Overview - Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025, and has 47,000 global employees [1] - The company has been leading operations for the DODNet program since February 2022, consolidating 26 separate networks and 12 help desks into a single environment [1] - Digital modernization and cyber solutions are key elements of Leidos' NorthStar 2030 growth strategy [1]