Core Insights - CrowdStrike Holdings has developed the Falcon cybersecurity platform, which provides comprehensive protection for companies, utilizing AI for threat detection and incident response [1][3] - The stock of CrowdStrike is down 22% from its peak, as investors express concerns over its high valuation compared to peers, but upcoming fiscal results are expected to show strong revenue growth due to increased demand for Falcon [2][3] Company Overview - Falcon is a cloud-based cybersecurity solution that requires minimal installation, allowing for seamless updates without disrupting customer operations [3] - Businesses can customize their cybersecurity solutions by selecting from 32 Falcon modules, with the flexibility to adjust their subscriptions as needs evolve [4] Industry Trends - The rise of AI is transforming the cybersecurity landscape, creating new vulnerabilities as businesses adopt AI technologies [5] - AI agents, which lack their own identity or credentials, present significant security risks if compromised, potentially leading to unauthorized access to sensitive data [6] Product Innovations - In response to emerging threats, CrowdStrike launched Falcon Next-Gen Identity Security, employing a "zero standing privileges" approach to minimize unauthorized access risks [7]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 reached $1.095 billion, representing a 7% year-over-year increase as reported and a 6% increase in constant currency [5][16] - Non-GAAP operating margin was 29%, and non-GAAP earnings per share (EPS) was $1.84, up 11% year-over-year as reported and in constant currency [5][16] - Non-GAAP net income for Q4 was $270 million, with a non-GAAP EPS of $1.84, reflecting an 11% year-over-year increase [18] Business Line Data and Key Metrics Changes - Cloud Infrastructure Services (CIS) revenue was $94 million, up 45% year-over-year as reported and 44% in constant currency, marking an acceleration from 39% growth in Q3 [5][16] - Security revenue totaled $592 million, up 11% year-over-year as reported and 9% in constant currency, with API Security and Zero Trust enterprise security revenue growing by 36% year-over-year [10][17] - Delivery revenue was $311 million, down 2% year-over-year as reported and down 3% in constant currency, indicating steady trends in the delivery business [18] Market Data and Key Metrics Changes - International revenue was $542 million, up 11% year-over-year or 8% in constant currency, representing 50% of total revenue in Q4 [18] - The company experienced a negative impact of $5 million from foreign exchange fluctuations on a sequential basis, but a positive impact of $12 million year-over-year [18] Company Strategy and Development Direction - The company is focusing on AI-related infrastructure, launching Akamai Inference Cloud to support AI applications, and has signed a four-year, $200 million commitment with a major U.S. tech company [6][7][21] - Investments of approximately $250 million in CapEx are planned to augment the AI inference cloud [21] - The company aims to report CIS as a standalone revenue category starting Q1 2026, reflecting its significance as a growth engine [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rapid growth of CIS, driven by AI-related demand and strong customer interest [9][10] - The company anticipates continued strong demand for security solutions, particularly API Security, which has seen over 100% year-over-year growth [10][17] - Management acknowledged inflationary pressures in the computer hardware market, particularly in memory chip prices, affecting CapEx forecasts [21][30] Other Important Information - The company was recognized as a Customers' Choice for network security micro-segmentation in the Gartner Peer Insights Report for 2026, with a 99% recommendation rate [10] - Akamai was named in Forbes' list of America's Most Trusted Companies and The Wall Street Journal's list of America's Best Managed Companies for 2026 [14][15] Q&A Session Summary Question: Can you discuss the increase in CapEx and its translation into revenue? - Management indicated that $1 of CapEx for $1 of revenue may not hold true due to inflation in memory chips, but it remains a decent model [32][33] Question: What is the pipeline for Akamai Inference Cloud? - The pipeline is strong, with significant interest in AI applications, and the initial offering has already sold out [35][36] Question: Can you provide details on the major U.S. tech customer contract? - This was an existing customer who increased their spend significantly, transitioning from CDN and security services to CIS [40] Question: How are larger CIS deals progressing? - Management noted that larger workloads are ramping up, with the $200 million deal expected to start recognizing revenue in Q4 2026 [58][81] Question: What is the outlook for delivery growth this year? - The company expects mid-single-digit growth in delivery, with longer commitments from customers becoming more prevalent [74][75]

Financial Data and Key Metrics Changes - Akamai reported Q4 2025 revenue of $1.095 billion, representing a 7% year-over-year increase as reported and a 6% increase in constant currency [4][15] - Non-GAAP operating margin was 29%, and non-GAAP earnings per share (EPS) was $1.84, up 11% year-over-year as reported and in constant currency [4][15] - Non-GAAP net income for Q4 was $270 million, with a cash gross margin of approximately 71%-72% expected for Q1 2026 [17][24] Business Line Data and Key Metrics Changes - Cloud Infrastructure Services (CIS) revenue was $94 million, up 45% year-over-year as reported and 44% in constant currency, now representing approximately 50% of total compute revenue [4][15] - Security revenue reached $592 million, up 11% year-over-year as reported and 9% in constant currency, with API security and zero trust enterprise security combined revenue at $90 million, an increase of 36% year-over-year [16][10] - Delivery revenue was $311 million, down 2% year-over-year as reported and down 3% in constant currency, indicating steady trends in the delivery business [17] Market Data and Key Metrics Changes - International revenue was $542 million, up 11% year-over-year or 8% in constant currency, representing 50% of total revenue in Q4 [17] - The company experienced a negative impact of $5 million from foreign exchange fluctuations on a sequential basis, but a positive impact of $12 million year-over-year [17] Company Strategy and Development Direction - Akamai is focusing on its transformation into a cybersecurity and cloud company, with significant investments in AI and cloud infrastructure [14] - The launch of Akamai Inference Cloud aims to support the growing demand for AI applications, with a commitment of $200 million from a major US tech company [6][19] - The company plans to invest approximately $250 million in CapEx to augment its AI inference cloud [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the AI market entering a critical transition point, with Akamai positioned to benefit from AI-related tailwinds [6] - The company anticipates continued strong demand for its cloud infrastructure services, projecting revenue growth to accelerate further in 2026 [9][25] - Management noted inflationary pressures in the computer hardware market, particularly in memory chip prices, which may impact future CapEx [19][27] Other Important Information - Akamai was recognized as a customer's choice for network security micro-segmentation in the Gartner Peer Insights Report for 2026, earning a 99% recommendation rate [10][13] - The company took a $55 million restructuring charge in Q4, primarily for severance costs and impairments of certain intangible assets [20][82] Q&A Session Summary Question: Can you discuss the increase in CapEx and its translation into revenue? - Management indicated that the increase in CapEx is influenced by inflation in memory chips, and while $1 of CapEx for $1 of revenue may not hold true, it remains a decent estimate [29][30] Question: What is the pipeline for Akamai Inference Cloud? - The pipeline is strong, with significant interest from various sectors, and the initial offering has already sold out [32][35] Question: How did the major U.S. tech customer deal come together? - The deal was with an existing customer who increased their spend significantly, transitioning from CDN and security services to cloud infrastructure [37][38] Question: What are the revenue commitments from customers today? - There is an increase in longer commitments across services, with the delivery growth expected to remain stable at mid-single digits [71][73] Question: How are major events expected to impact revenue? - Events like the Winter Olympics and FIFA World Cup are not expected to have a significant impact on overall revenue, but they are beneficial [50][52]

Palo Alto Networks Announces Offer to Purchase Relating to CyberArk Software Ltd.'s 0.00% Convertible Senior Notes due 2030 [Accessibility Statement] Skip NavigationSANTA CLARA, Calif., Feb. 19, 2026 /PRNewswire/ -- Today, Palo Alto Networks, Inc. (NASDAQ: PANW) ("Palo Alto Networks") announced that, in connection with the closing of the transaction (the "Acquisition") contemplated by the Agreement and Plan of Merger, dated as of July 30, 2025, by and among Palo Alto Networks, CyberArk Software Ltd., a comp ...

Core Insights - Akamai Technologies reported strong financial performance for Q4 and full-year 2025, with notable revenue growth in key product areas, particularly in Cloud Infrastructure Services and security solutions [4][5][6]. Financial Performance - Q4 2025 revenue reached $1.095 billion, a 7% increase from Q4 2024, and a 6% increase when adjusted for foreign exchange [5][6]. - Full-year 2025 revenue totaled $4.208 billion, up 5% year-over-year, and adjusted for foreign exchange [5][6]. - Cloud Infrastructure Services revenue for Q4 was $94 million, reflecting a 45% year-over-year increase, and $314 million for the full year, up 36% [5][6]. - Security revenue for Q4 was $592 million, an 11% increase year-over-year, and $2.243 billion for the full year, up 10% [6][10]. Profitability Metrics - GAAP net income for Q4 was $85 million, a 39% decrease from Q4 2024, while full-year GAAP net income was $452 million, down 10% year-over-year [10][11]. - Non-GAAP net income for Q4 was $270 million, up 6% year-over-year, and $1.046 billion for the full year, a 5% increase [11][12]. - GAAP net income per diluted share for Q4 was $0.58, down 36% from the previous year, while for the full year it was $3.07, down 6% [12][10]. Operational Efficiency - GAAP income from operations for Q4 was $95 million, a 36% decrease from Q4 2024, while full-year GAAP income from operations was $567 million, a 6% increase [8][9]. - Non-GAAP income from operations for Q4 was $316 million, a 6% increase year-over-year, and $1.254 billion for the full year, up 7% [9][8]. Cash Flow and Capital Management - Cash from operations for Q4 was $367 million, representing 33% of revenue, and for the full year, it was $1.519 billion, or 36% of revenue [13][24]. - The company did not repurchase shares in Q4 2025 but spent $800 million to repurchase 10 million shares throughout the year [14]. Geographic Revenue Breakdown - U.S. revenue for Q4 was $553 million, up 4% year-over-year, and $2.139 billion for the full year, up 3% [15][27]. - International revenue for Q4 was $542 million, up 11% year-over-year, and $2.069 billion for the full year, up 8% [15][27]. Future Guidance - For Q1 2026, Akamai expects revenue between $1.060 billion and $1.085 billion, with a non-GAAP operating margin of 26% to 27% [16]. - For the full year 2026, revenue guidance is set between $4.400 billion and $4.550 billion, with a non-GAAP net income per diluted share expected to be between $6.20 and $7.20 [16].

Sailpoint Inc. (NASDAQ:SAIL) is one of the best debt-free mid-cap stocks to buy according to hedge funds. On February 17, Mizuho analyst Gregg Moskowitz cut the price target on Sailpoint Inc. (NASDAQ:SAIL) from $23 to $20 but kept a Neutral rating. The firm lowered targets across software stocks because of recent sector weakness, though it still sees some good long-term opportunities. Mizuho noted that fears about AI disruption have hurt sentiment badly, but its latest checks showed software demand holding ...

Shares of most of the cybersecurity companies Jefferies covers are trading at the lowest valuations seen over the past five years. ...

Shares of Palo Alto Networks (NASDAQ: PANW) had a rough week, falling as much as 11.3%, according to data supplied by S&P Global Market Intelligence. As of 1:11 p.m. ET on Thursday, the stock was still down 9.9%. The catalyst that sent the cybersecurity specialist lower was the fallout from its earnings report and management's associated guidance. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the ...

Group 1: AI Integration and Market Reactions - Wall Street analysts and executives are countering the negative sentiment surrounding AI, asserting that AI integration will enhance business operations rather than harm them [1] - The sell-off in logistics stocks, such as C.H. Robinson and Universal Logistics, was triggered by a small company's announcement of an AI platform capable of increasing freight volumes by 300% to 400% and reducing empty trucking miles by 70% [3] - C.H. Robinson's CEO emphasized that the company is a disrupter in the market, not disrupted, highlighting their leadership in AI integration [4] Group 2: Company Performance and Growth - Figma's stock rose by 6% after reporting a record number of new customers in 2025, reversing a 30% year-to-date decline, with significant growth in its AI-powered tool, Figma Make, which saw a 70% increase in weekly active users quarter over quarter [2] - Analysts from Wedbush identified buying opportunities in the cybersecurity sector, noting that companies like CrowdStrike, Palo Alto Networks, and Zscaler have seen declines of 7%, 16%, and 22% year to date, respectively [5] - Bernstein analysts suggested that the recent de-rating of AI-exposed sectors may be overdone, indicating that coding constitutes only a small fraction of engineers' activities [6]

Palo Alto Networks logo on a digital shield in a server room, underscoring cybersecurity demand. Key Points Analysts largely view Palo Alto’s guidance-driven dip as temporary, with integration costs pressuring near-term margins but supporting long-term positioning. Institutional ownership and recent buying activity are presented as key supports, with price action holding near a stated critical level. Core business momentum—especially Next-Gen Security ARR and rising RPO—supports the case for re-acceler ...