Core Viewpoint - Palo Alto Networks reported quarterly earnings of $0.95 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and showing an increase from $0.75 per share a year ago, representing an earnings surprise of +7.95% [1][2] Financial Performance - The company achieved revenues of $2.54 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.46%, and up from $2.19 billion year-over-year [2] - Over the last four quarters, Palo Alto has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Palo Alto shares have declined approximately 2.7% since the beginning of the year, while the S&P 500 has gained 9.7% [3] - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $2.44 billion, and for the current fiscal year, it is $3.65 on revenues of $10.43 billion [7] - The outlook for the industry, particularly the Security sector, is currently in the bottom 28% of Zacks industries, which may impact stock performance [8]

Core Insights - Okta (OKTA) shares have declined 27.2% in the past three months, underperforming the Zacks Computer and Technology sector's return of 15.4% and the Zacks Security industry's fall of 8.5% [1][7] - The decline is attributed to slowing federal business, challenging macroeconomic conditions, and stiff competition in the Identity and Access management domain [1][10] Financial Performance - For fiscal 2026, Okta expects revenues between $2.85 billion and $2.86 billion, indicating 9-10% growth from fiscal 2025 [10] - Non-GAAP earnings are projected between $3.23 and $3.28 per share, suggesting 16.7% growth year-over-year [11] - Second-quarter fiscal 2026 revenues are anticipated to be between $710 million and $712 million, reflecting 10% year-over-year growth [12] Market Position - Okta shares are currently trading below the 50-day and 200-day moving averages, indicating a bearish trend [5] - The company's Value Score is D, indicating that Okta shares are overvalued compared to peers like Cisco [9] Product and Innovation - Okta is expanding its AI-driven identity tools and partnerships, which are expected to drive long-term growth [7][13] - The launch of the Cross App Access protocol aims to enhance security for AI agents, reflecting Okta's commitment to protecting customers deploying AI [14] Partnerships and Liquidity - Okta has a rich partner base, including major companies like Amazon Web Services, Microsoft, and Palo Alto Networks, with over 7,000 integrations [16] - The company ended Q1 FY26 with $2.73 billion in cash, indicating strong liquidity, and raised free cash flow margin guidance to roughly 27% [18] Customer Growth - Okta exited Q1 FY26 with approximately 20,000 customers, with a notable increase in customers with over $100,000 in Annual Contract Value [19]

Company Overview - Zscaler (ZS) ended the recent trading session at $270.99, showing a -2.44% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.03% [1] - Over the past month, Zscaler's shares have depreciated by 3.47%, while the Computer and Technology sector gained 6.37% and the S&P 500 gained 3.46% [1] Earnings Projections - The upcoming earnings release is scheduled for September 2, 2025, with projected earnings of $0.8 per share, indicating a year-over-year decline of 9.09% [2] - Revenue for the same quarter is estimated at $706.19 million, reflecting a 19.11% rise from the equivalent quarter last year [2] Full Year Estimates - For the full year, Zacks Consensus Estimates project earnings of $3.18 per share and revenue of $2.66 billion, representing changes of -0.31% and 0% from the prior year, respectively [3] - Recent changes to analyst estimates for Zscaler may indicate shifting business dynamics, with positive revisions reflecting analyst optimism [3][4] Valuation Metrics - Zscaler has a Forward P/E ratio of 77.89, which is a premium compared to the industry average Forward P/E of 63.15 [6] - The company has a PEG ratio of 5.4, indicating a higher valuation relative to its expected earnings growth rate, compared to an average PEG ratio of 2.63 at the previous closing price [6] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 97, placing it in the top 40% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Cemtrex Inc. reported significant improvements in revenue, margins, and profitability for the third quarter and nine months ended June 30, 2025, compared to the previous year [1][2][3] Financial Performance - Revenue for the third quarter increased by 16% to $17.0 million from $14.7 million, while revenue for the nine months rose by 19% to $58.0 million from $48.7 million [7] - The Security segment saw a revenue increase of 22% to $7.6 million in the third quarter and 28% to $30.0 million for the nine months, bolstered by a $10.4 million order from Vicon [7] - Industrial Services revenue grew by 10% to $9.4 million in the third quarter and 11% to $27.9 million for the nine months [7] - Gross profit increased by 25% to $7.37 million in the third quarter, with gross margin improving to 43% from 40%, and for the nine months, gross profit rose by 27% to $25.24 million, with gross margin improving to 44% from 41% [7] - Operating loss narrowed to $0.64 million in the third quarter from $3.18 million, and operating income for the nine months was $1.69 million, compared to an operating loss of $4.95 million last year, marking a $6.64 million improvement [7] Balance Sheet and Liquidity - Cash and equivalents, including restricted cash, increased to $8.15 million from $5.42 million at the end of September 2024 [7] - Working capital stood at $4.92 million despite higher current maturities of long-term liabilities [7] - Total assets increased to $46.96 million from $44.12 million, while total liabilities rose to $43.11 million from $39.15 million [10][11] Management Commentary - The CEO highlighted that Cemtrex is now a stronger, more profitable, and efficient business, with nearly 20% sales growth and a significant improvement in operating income [2][3] - The company has focused on tightening expenses, improving efficiency, and strengthening the balance sheet while executing its growth plan [3]

Core Insights - CyberArk's subscription revenues rebounded significantly in Q2 2025, reaching $264 million, which is a 66% year-over-year increase [1][10] - The annual recurring revenues (ARR) from subscriptions hit $1.08 billion, marking a 61% increase year-over-year [3][10] - CyberArk's subscription revenues constituted 80% of total revenues in Q2 2025 [3] Subscription Growth Drivers - The growth is attributed to customers transitioning from perpetual maintenance contracts to subscription models [2] - Larger deal sizes and improved customer lifetime value from platform upsells are contributing factors [2] - A significant number of customers are adopting multiple solutions simultaneously, enhancing subscription annual contract value (ACV) [2] Product Enhancements and Acquisitions - Recent product launches, such as Secure AI Agent, and acquisitions like Venafi and Zilla Security are expected to further boost subscription revenue growth [4] - The strong business model has led to Palo Alto Networks planning to acquire CyberArk for approximately $25 billion at a premium [4][10] Competitive Landscape - Competitors like Okta and CrowdStrike are also experiencing growth in subscription revenues [5] - Okta's subscription revenues rose 11.6% year-over-year to $673 million, accounting for 97.8% of total revenues [6] - CrowdStrike's subscription revenues increased by 21% to $1.05 billion, driven by demand for its identity security platform [7] Financial Performance and Valuation - CyberArk's shares have increased by 26.9% year-to-date, outperforming the Zacks Security industry's growth of 7.6% [8] - The forward price-to-sales ratio for CyberArk is 14.14X, higher than the industry average of 11.98X [11] - Earnings estimates for fiscal years 2025 and 2026 imply year-over-year growth of 27% and 25.3%, respectively, with upward revisions in the past 30 days [14]

Company Performance - SentinelOne closed at $15.81, reflecting a -1.37% change from the previous day, which was less than the S&P 500's daily loss of 0.25% [1] - Prior to the latest trading session, shares had decreased by 7.29%, underperforming the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71% [1] Upcoming Earnings Report - The company is set to release its earnings on August 28, 2025, with projected EPS of $0.03, indicating a 200.00% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $242.02 million, representing a 21.65% increase from the same period last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $0.20 per share and revenue of $996.62 million, reflecting changes of +300% and +21.32% respectively compared to the previous year [3] - Recent adjustments to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] Valuation Metrics - SentinelOne is currently trading at a Forward P/E ratio of 80.42, which is a premium compared to the industry average Forward P/E of 60.68 [6] - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 155, placing it in the bottom 38% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] - Currently, SentinelOne holds a Zacks Rank of 4 (Sell), with the Consensus EPS estimate remaining unchanged over the last 30 days [5]

Core Insights - Palo Alto Networks, Inc. (PANW) shares have declined by 14.5% over the past six months, underperforming the Zacks Security industry's decline of 10% and its peers like CyberArk, CrowdStrike, and Zscaler [1][2] Sales Growth Concerns - The company is experiencing a slowdown in sales growth, with revenue growth rates in the mid-teens percentage range over the past year, down from mid-20s in fiscal 2023 [3][4] - Full-year revenue growth for fiscal 2025 is forecasted at just 14%, with revenues expected to be in the range of $9.17-$9.19 billion [4] - The Zacks Consensus Estimate indicates revenue growth will remain in the mid-teen percentage range for fiscal 2025 and 2026 [4] Next-Generation Security (NGS) Growth - NGS annual recurring revenue (ARR) growth has decelerated for five consecutive quarters, with projections for fiscal 2025 suggesting a slowdown to 31-32% growth compared to over 45% in previous years [7][8] - The shift from multi-year payments to annual payments for $1 million-plus deals is affecting top-line stability [9] Industry Opportunities - The global cybersecurity market is projected to grow from $193.73 billion in 2024 to $562.77 billion by 2032, indicating a significant addressable market for Palo Alto Networks [10] - The company is well-positioned to capitalize on the demand for advanced cybersecurity solutions, particularly through its AI-driven platforms like Cortex XSIAM and Prisma AIRS [11] Financial Stability and Valuation - Palo Alto Networks is transitioning to a platform-based model, generating recurring revenue streams and enhancing customer retention [14] - The company is currently trading at a lower price-to-sales (P/S) ratio of 10.62X compared to the industry average of 11.51X and peers like CyberArk, CrowdStrike, and Zscaler [17][20] Conclusion - Despite slowing revenues and NGS ARR growth rates, Palo Alto Networks remains a leader in cybersecurity with continued innovation and a shift towards a predictable recurring revenue model [21][22] - The discounted valuation offers some downside protection, making PANW an attractive long-term hold for investors seeking exposure to cybersecurity growth [22]

Core Insights - Cisco Systems (CSCO) is expected to report its fourth-quarter fiscal 2025 results on August 13, with anticipated revenues between $14.5 billion and $14.7 billion and non-GAAP earnings per share (EPS) between $0.96 and $0.98 [1][9] - The Zacks Consensus Estimate for revenues is $14.6 billion, reflecting a year-over-year growth of 7.1%, while the consensus for earnings is steady at $0.97 per share, indicating an 11.5% increase year-over-year [2] Revenue and Earnings Expectations - Cisco's fourth-quarter fiscal 2025 results are projected to benefit from increased demand for networking products, particularly in switching, enterprise routing, webscale infrastructure, and industrial networking applications [4] - The Zacks Consensus Estimate for networking revenues is $7.19 billion, representing a 5.6% year-over-year growth, while security revenues are estimated at $2.2 billion, indicating a significant 23.2% year-over-year growth [5][6] Stock Performance - Cisco shares have appreciated 18.1% year-to-date, outperforming the Zacks Computer & Technology sector's return of 12.7% and competitors like Dell Technologies (16.2%) and Hewlett Packard Enterprise (-4.4%) [7] Strategic Initiatives - Cisco's strategy includes integrating AI across its security platforms and enhancing its product offerings, such as the Duo Identity and Access Management solutions aimed at combating identity-based attacks [5][9] - The company has announced new security solutions that support zero-trust architectures, including the Hybrid Mesh Firewall and Universal Zero Trust Network Access solutions [6] AI and Partnerships - Cisco has secured over $1 billion in AI infrastructure orders in fiscal 2025, ahead of schedule, driven by its expanding AI portfolio and partnerships with companies like NVIDIA and ServiceNow [14][15] - The collaboration with NVIDIA focuses on building AI-ready data center networks, which is expected to significantly enhance Cisco's AI-driven revenues [16] - The partnership with ServiceNow aims to integrate Cisco's infrastructure and security platforms with ServiceNow's AI-driven solutions for improved risk management [17] Conclusion - Cisco's upcoming results are anticipated to benefit from a robust networking and security business, supported by a strong partner ecosystem [18]

Company Performance - Zscaler's stock closed at $272.50, reflecting a -5.81% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.08% [1] - Prior to the recent trading session, Zscaler shares had declined by 8.59%, contrasting with the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21% [1] Upcoming Earnings - Zscaler is expected to report an EPS of $0.8, which indicates a 9.09% decline compared to the same quarter last year [2] - The consensus estimate for Zscaler's revenue is projected at $706.19 million, representing a 19.11% increase year-over-year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $3.18 per share and revenue of $2.66 billion, reflecting changes of -0.31% and 0% respectively from the prior year [3] - Analysts' forecast revisions are crucial as they indicate the changing nature of near-term business trends, with positive revisions suggesting optimism regarding business and profitability [3][4] Valuation Metrics - Zscaler has a Forward P/E ratio of 81.13, which is higher than the industry average of 64.23, indicating that Zscaler is trading at a premium [6] - The company also has a PEG ratio of 5.62, compared to the Security industry's average PEG ratio of 2.9, suggesting a higher valuation relative to expected earnings growth [6] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 100, placing it in the top 41% of all industries [7] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Fortinet (FTNT) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non- recurring items. While Fortinet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings ou ...