Core Insights - Okta's Remaining Performance Obligations (RPO) surged to $4.084 billion in Q1 FY2026, a 21% year-over-year increase, with current RPO at $2.23 billion, reflecting strong revenue visibility for the next 12 months [1][8] - The company is experiencing robust demand for its identity security solutions, particularly in areas like Identity Governance and Privileged Access, as enterprises prioritize secure access [2][8] - For Q2 FY2026, Okta projects current RPO growth of 10% to 11%, indicating resilient demand despite macroeconomic challenges [3][8] Competitive Landscape - Okta faces significant competition from CyberArk and Microsoft in the identity and access management sector [4] - CyberArk is enhancing its offerings in Privileged Access Management and expanding into automated Identity Governance through its acquisition of Zilla Security [5] - Microsoft's Entra ID presents a formidable challenge with its comprehensive Identity and Access Management solutions [6] Financial Performance - Okta's stock has appreciated 27.7% year-to-date, outperforming the Zacks Security industry's return of 19.9% [7] - The Zacks Consensus Estimate for Okta's FY2026 revenues is $2.86 billion, reflecting a 9.44% year-over-year growth, with earnings estimated at $3.28 per share, indicating a 16.73% growth from FY2025 [10] - Okta currently trades at a forward Price/Cash Flow ratio of 23.83, higher than the broader Zacks Computer & Technology sector's 20.4X, with a Value Score of D [9]

Core Insights - CyberArk (CYBR) is enhancing its identity security platform with AI integration, including the Secure AI Agents Solution and CORA AI, in collaboration with Accenture [1][4][10] Company Developments - The Secure AI Agent solution protects AI Agents from prompt injection, credential leakage, and permission abuse, while CORA AI acts as the intelligence engine within this solution [2] - The integration of CORA AI and Secure AI Agents allows CyberArk to secure human, AI, and machine identities, covering workforce access, IT systems, developer environments, and workload access [3][10] - CyberArk's subscription Annual Recurring Revenue (ARR) grew 65% year-over-year in Q1 2025, indicating strong demand for its cybersecurity solutions [4][10] Financial Performance - For 2025, CyberArk expects revenues between $1.313 billion and $1.323 billion, with a Zacks Consensus Estimate of $1.32 billion, reflecting a year-over-year growth of 31.89% [5] - The Zacks Consensus Estimate for CyberArk's fiscal 2025 and 2026 earnings implies year-over-year growth of 25.41% and 25.76%, respectively, with upward revisions in the past 30 days [12] Market Position - The identity security and access management market is projected to grow at a CAGR of 8.4% from 2024 to 2029, providing ample growth opportunities for CyberArk and its competitors like CrowdStrike and Okta [8] - CyberArk's shares have gained 19.8% year-to-date, slightly underperforming the Zacks Security industry's growth of 20.2% [9] Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.66X, which is lower than the industry's average of 14.54X, indicating a potentially attractive valuation [11]

Company Overview - CyberArk shares have increased by approximately 11.5% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential for understanding the key drivers behind this performance [1] Earnings Estimates - Estimates for CyberArk have remained flat over the past month, with a consensus estimate shift of 22.22% [2] VGM Scores - CyberArk has a strong Growth Score of A but a low Momentum Score of D, and a Value Score of F, resulting in an aggregate VGM Score of D [3] Outlook - CyberArk holds a Zacks Rank of 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4] Industry Performance - CyberArk is part of the Zacks Security industry, where Qualys has seen a 3.2% gain over the past month [5] - Qualys reported revenues of $159.9 million for the last quarter, reflecting a year-over-year increase of 9.7% [5] - Qualys is expected to post earnings of $1.47 per share for the current quarter, indicating a 3.3% decrease from the previous year [6]

Core Insights - CyberArk Software (CYBR) reported strong first-quarter fiscal 2025 results with Annual Recurring Revenues (ARR) of $1.22 billion, an increase from $1.17 billion in the previous quarter, and a net new ARR of $46 million driven by subscription growth and identity security platform adoption [1][10] Group 1: Financial Performance - Subscription ARR surpassed $1.03 billion, accounting for nearly 85% of total ARR, with an addition of $51 million in net new subscription ARR, indicating enhanced financial stability and predictability [2][10] - CyberArk aims for full-year fiscal 2025 ARR to reach between $1.41 billion and $1.42 billion, reflecting approximately 21% year-over-year growth, supported by a robust subscription base and new customer additions [5] Group 2: Product Development and Strategy - CyberArk is expanding into artificial intelligence (AI) with its new "Secure AI Agent" product, designed to protect both autonomous and human-controlled AI systems, addressing the growing need for security in AI tools [2][3] - The company reported that machine identity products were featured in nine of the ten largest deals in the quarter, showcasing its capability to protect non-human identities [3] Group 3: Competitive Landscape - Competitors like Zscaler and SentinelOne are also experiencing growth, with Zscaler achieving $2.9 billion in ARR (23% year-over-year growth) and SentinelOne reaching $948 million in ARR (24% year-over-year growth) [6][7] - CyberArk's shares have gained 19.5% year-to-date, compared to the Zacks Security industry's growth of 22% [8] Group 4: Valuation Metrics - CyberArk trades at a forward price-to-sales ratio of 13.76, which is below the industry's average of 14.77, indicating potential valuation attractiveness [12]

Industry Overview - The Zacks Security industry is experiencing strong demand for cybersecurity products due to the increasing need for secure networks and cloud-based applications, particularly in hybrid work environments [1] - The surge in demand is driven by a significant rise in data breaches, leading companies to seek comprehensive IT security solutions [1] - The industry encompasses both on-premise and cloud-based security solutions, including identity access management, infrastructure protection, integrated risk management, malware analysis, and Internet traffic management [3] Major Trends - Rising cyber threats are escalating the need for robust security solutions, impacting not only individual companies but also national security [4] - The shift towards digital transformation and cloud migration is driving demand for cybersecurity solutions across various sectors, including education, healthcare, and entertainment [5] - Macroeconomic headwinds and geopolitical issues may lead enterprises to delay significant IT investments, potentially affecting the security market in the short term [6] Company Performance - Companies like CyberArk Software, Okta, and Qualys are benefiting from the trends in the cybersecurity market [2] - CyberArk Software is experiencing growth due to rising demand for privileged access security solutions, with a strong presence across various sectors [21] - Qualys is well-positioned to navigate market challenges with its diverse customer base and continuous innovation in information security solutions [28] - Okta's identity security solutions are gaining traction as organizations adopt digital transformation strategies, serving approximately 20,000 customers [33] Financial Outlook - The Zacks Security industry holds a Zacks Industry Rank of 19, placing it among the top 8% of nearly 250 Zacks industries, indicating solid near-term prospects [8] - The industry's bottom-line estimate for 2025 has increased to $1.45 from $1.35, reflecting analysts' optimism about earnings growth potential [10] - Over the past year, the Zacks Security industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, with a return of 38.3% compared to 11.8% and 11.9% respectively [13] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-sales ratio of 14.77, significantly higher than the S&P 500's 5.12 and the sector's 6.37 [16] - Over the last five years, the industry's price-to-sales ratio has ranged from a high of 19.36X to a low of 6.92X, with a median of 12.56X [17]

Core Insights - Palo Alto Networks (PANW) achieved a significant milestone in Q3 of fiscal 2025, with annual recurring revenues (ARR) for its next-generation security (NGS) solutions reaching $5.09 billion, marking a year-over-year growth of 34% [1][9] - The company reported a substantial increase in high-value customers, with 130 customers generating over $5 million in NGS ARR, a 41% increase year-over-year, and 44 customers exceeding $10 million, a growth of 63% [2] - AI-related ARR has surged to approximately $400 million, which is 2.5 times higher than the same quarter last year, driven by the success of the XSIAM platform [2] NGS Platform Performance - XSIAM, an AI-powered NGS platform, saw bookings approach $1 billion on a trailing 12-month basis, with around 270 customers and an average ARR per customer exceeding $1 million [3] - The ARR from XSIAM grew over 200% year-over-year in Q3, just 30 months after its general availability [3] Future Growth Projections - Management has set an ambitious target of $15 billion in ARR by fiscal 2030, with NGS ARR expected to contribute approximately 60-70% of the total targeted ARR for fiscal 2023 [4] Competitive Landscape - Competitors like CrowdStrike and SentinelOne are also experiencing growth, with CrowdStrike reporting $4.44 billion in ARR (22% year-over-year growth) and SentinelOne reaching $948 million (24% year-over-year growth) [5][6] Valuation and Earnings Estimates - PANW's shares have increased by 6.7% year-to-date, compared to the industry's growth of 19.4% [7] - The company trades at a forward price-to-sales ratio of 12.6, which is below the Zacks Security industry's ratio of 14.47 [11] - The Zacks Consensus Estimate for PANW's fiscal 2025 earnings indicates a year-over-year increase of approximately 15%, while fiscal 2026 estimates suggest an 11% increase [14]

Company Overview - Qualys shares have increased by approximately 8.4% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the catalysts affecting the stock [1] Earnings Estimates - Fresh estimates for Qualys have trended upward, with the consensus estimate shifting by 8.18% [2] VGM Scores - Qualys has a Growth Score of A, a Momentum Score of C, and a Value Score of F, resulting in an aggregate VGM Score of C [3] Outlook - The upward trend in estimates suggests a promising outlook, leading to a Zacks Rank of 1 (Strong Buy) for Qualys, indicating expectations of above-average returns in the coming months [4] Industry Performance - Qualys is part of the Zacks Security industry, where Check Point Software has gained 4.6% over the past month [5] - Check Point reported revenues of $637.8 million for the last quarter, reflecting a year-over-year increase of 6.5% [5] - Check Point's expected earnings for the current quarter are $2.36 per share, indicating an 8.8% increase from the previous year [6]

Group 1: Earnings Performance - CrowdStrike Holdings reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, but down from $0.93 per share a year ago, representing an earnings surprise of 10.61% [1] - The company posted revenues of $1.1 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.10%, compared to revenues of $921.04 million a year ago [2] - Over the last four quarters, CrowdStrike has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - CrowdStrike shares have increased approximately 40% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.80 on revenues of $1.16 billion, and for the current fiscal year, it is $3.44 on revenues of $4.78 billion [7] Group 3: Industry Context - The Zacks Security industry is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Vicon Industries, a subsidiary of Cemtrex Inc., has secured significant orders valued at approximately $0.8 million from correctional facilities in the UK, reinforcing its position in a highly regulated surveillance market [1][3][4] Company Overview - Cemtrex, Inc. operates in the Security and Industrial sectors, with Vicon Industries leading its Security segment by providing advanced video management software, high-performance security cameras, and integrated surveillance solutions [5] Market Position - The recent orders highlight Vicon's ability to meet stringent standards and rigorous procurement processes in the UK correctional market, showcasing its engineering capabilities and commitment to long-term customer partnerships [3][4] - Vicon's technology is recognized for its reliable performance and seamless integration, which are critical in protecting secure facilities [3][4] Product Deployment - The orders include advanced surveillance hardware and software tailored for multiple prisons and an immigration center, featuring outdoor dome and bullet cameras, Valerus enterprise video management licenses, and high-performance recording servers [2] - Deployment of these systems is scheduled to begin this quarter, with full delivery expected before the end of the fiscal year [4] Future Opportunities - The client has indicated potential for future orders related to ongoing infrastructure upgrades, suggesting a positive outlook for Vicon's continued engagement in the UK market [4]

Core Insights - Zscaler reported strong third-quarter fiscal 2025 results, with non-GAAP earnings of 84 cents per share, exceeding the Zacks Consensus Estimate by 12% and reflecting an 18.3% year-over-year increase driven by revenue growth and cost management [1][3] - The company's revenues for the third quarter reached $678 million, surpassing the Zacks Consensus Estimate by 1.8% and management's guidance, marking a 23% year-over-year growth [2][3] - Following the positive results, Zscaler raised its fiscal 2025 guidance, which is expected to positively impact its stock performance [3] Financial Performance - Zscaler's calculated billings increased by 25% year over year to $784.5 million, with the Americas contributing 54% of revenues, EMEA 30%, and Asia Pacific and Japan 16% [4] - The non-GAAP gross profit rose by 20.8% year over year to $544.15 million, while the non-GAAP gross margin contracted by 100 basis points to 80% [7] - Total non-GAAP operating expenses accounted for 58.6% of revenues, increasing by 21% year over year to $397.5 million, resulting in a non-GAAP operating income of $146.7 million [7] Customer Metrics - Zscaler added multiple large customers across its offerings, achieving a net 12-month trailing dollar-based retention rate of 114% [5] - The company had 642 customers with annualized recurring revenues (ARR) of $1 million or more, and 3,363 customers with ARR exceeding $100,000 at the end of the third quarter [6] Balance Sheet and Cash Flow - As of April 30, 2025, Zscaler had $1.99 billion in cash and short-term investments, down from $2.88 billion as of January 31, 2025 [8] - The company generated operating cash flow of $211.1 million and free cash flow of $119.5 million during the third quarter [8] Updated Guidance - Zscaler revised its fiscal 2025 revenue forecast to a range of $2.659-$2.661 billion, up from $2.640-$2.654 billion, indicating a growth of 22.18% from fiscal 2024 [9] - The company expects calculated billings to be in the range of $3.184-$3.189 billion, an increase from the previous guidance [9] - Non-GAAP earnings per share for fiscal 2025 are now projected between $3.18 and $3.19, compared to the previous guidance of $3.04-$3.09 [10]