Core Viewpoint - Palo Alto Networks is expected to report strong fiscal third-quarter results with projected revenues of $2.26-$2.29 billion, indicating a year-over-year growth of 14-15% [1][8] Revenue and Earnings Projections - The Zacks Consensus Estimate for fiscal third-quarter revenues is $2.27 billion, reflecting a growth of 14.6% from the previous year [1] - Non-GAAP earnings are projected to be 77 cents, representing a 16.7% increase from the same quarter last year [2] Performance History - Palo Alto Networks has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.5% [5] Factors Influencing Q3 Results - The company is likely to benefit from strong deal wins and increased demand for its machine learning-powered security models [8] - The accelerated migration to cloud platforms and rising cyberattacks due to hybrid work environments are expected to drive demand for cybersecurity solutions [9] - FedRAMP recognitions for several products are enhancing adoption among government organizations [10] Challenges and Risks - The company faces challenges related to the transition from hardware to software and cloud-based solutions, which may impact gross margins [11] - There are concerns about softening IT spending due to macroeconomic uncertainties, which could affect revenue growth [15] - Increased competition from established players like CrowdStrike and Zscaler necessitates continuous investment in capabilities [18][19] Stock Performance and Valuation - Over the past year, Palo Alto Networks' shares have increased by 21.8%, underperforming the Zacks Internet – Software industry's return of 31.8% [12] - The company is trading at a forward 12-month P/S of 12.52X, which is lower than the industry's 14.04X, indicating a fair valuation [13] Investment Consideration - The company's innovative product offerings and expanding market opportunities in areas like Zero Trust and private 5G security solutions present growth potential [14] - Despite near-term challenges, the long-term outlook remains positive, making the stock worth holding [21]

Core Insights - Newmark facilitated the largest new office lease in Silicon Valley since 2023, representing Zscaler in a 301,163-square-foot sublease for its new global headquarters [1][2][3] - The new headquarters, located at 4301 and 4401 Great America Parkway in Santa Clara, California, is set to open in summer 2026 and aims to support Zscaler's rapid growth in the zero trust cybersecurity sector [1][2][3] Company Overview - Zscaler is a leader in zero trust cybersecurity, providing AI-powered solutions to protect enterprises [1] - The new facility will enhance Zscaler's innovative environment and accommodate its expanding workforce, reflecting the company's commitment to collaboration and community impact [2][3] Newmark's Role - Newmark's Vice Chairman Mike Saign and Senior Managing Director Rich Hoyt led the team that advised Zscaler on this significant transaction [2] - Newmark Group, Inc. reported revenues exceeding $2.8 billion for the twelve months ending March 31, 2025, and operates approximately 165 offices globally with around 8,100 professionals [4]

Core Insights - Cisco Systems (CSCO) reported strong Q3 fiscal 2025 results, exceeding both earnings and revenue estimates, and raised its fiscal year outlook due to sustained demand for its technologies [1][3][5] Financial Performance - Earnings per share were 96 cents, surpassing the Zacks Consensus Estimate of 91 cents and improving from 88 cents year-over-year [3] - Revenues increased by 11% year-over-year to $14.1 billion, beating the consensus estimate of $14.06 billion [3] - Product revenues rose 15% to $10.37 billion, while services revenues grew 2.6% to $3.78 billion [4] Outlook - Cisco raised its fiscal 2025 revenue guidance to a range of $56.5-$56.7 billion from the previous $56-$56.5 billion, and lifted its earnings per share guidance to $3.77-$3.79 from $3.68-$3.74 [5] - For Q4, Cisco forecasts revenues between $14.5-$14.7 billion and earnings in the range of 96-98 cents per share, with the Zacks Consensus Estimate at $14.54 billion for revenues and 96 cents for earnings per share [6] ETF Implications - Cisco's strong performance is expected to positively impact ETFs with significant allocations to the company, including iShares U.S. Telecommunications ETF (IYZ), First Trust Nasdaq Cybersecurity ETF (CIBR), iShares Edge MSCI USA Value Factor ETF (VLUE), Pacer Data and Digital Revolution ETF (TRFK), and Amplify Cybersecurity ETF (HACK) [2]

Core Insights - Analysts expect Palo Alto Networks (PANW) to report quarterly earnings of $0.77 per share, reflecting a year-over-year increase of 16.7% [1] - Revenue is anticipated to reach $2.27 billion, marking a 14.6% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.1% lower in the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Revenue Projections - Analysts predict 'Revenue- Product' to be $418.98 million, indicating a year-over-year change of +7.2% [4] - The estimate for 'Revenue- Subscription and support' is $1.86 billion, suggesting a change of +16.4% year over year [4] - The 'Revenue- Subscription and support- Support' is estimated at $598.89 million, reflecting a +9.3% change from the prior-year quarter [4] Subscription Metrics - The average prediction for 'Revenue- Subscription and support- Subscription' is $1.25 billion, indicating a year-over-year change of +20% [5] - Analysts estimate 'Remaining Performance Obligation (RPO)' to reach $13.54 billion, up from $11.3 billion reported in the same quarter last year [5] Profit Projections - 'Product gross profit Non-GAAP' is projected to be $329.84 million, compared to $316.60 million in the same quarter last year [6] - 'Subscription and support gross profit Non-GAAP' is expected to reach $1.43 billion, up from $1.22 billion reported in the same quarter last year [6] Stock Performance - Palo Alto shares have increased by +12.5% in the past month, outperforming the Zacks S&P 500 composite's +9% [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Core Insights - Tenable has introduced significant enhancements to its flagship platform, Tenable One, including Tenable One Connectors and customizable risk dashboards, aimed at providing a comprehensive exposure management solution [1][6] - The platform addresses the challenges posed by the fragmented security landscape, where organizations typically manage an average of 83 disconnected tools, leading to operational inefficiencies and blind spots [2][6] - Tenable One integrates data from both native and third-party security tools, offering a unified view of organizational risk and enabling faster, smarter security decisions [3][4] Product Features - The new ecosystem of out-of-the-box Connectors allows seamless integration with various third-party tools, enhancing endpoint detection, cloud security, and vulnerability management [3] - The Tenable Exposure Data Fabric serves as the platform's scalable, cloud-native architecture, which normalizes and connects data across the security ecosystem [4] - Customizable risk dashboards are designed to streamline reporting processes, providing security teams with tailored insights that align with specific business roles and priorities [5] Market Context - The cybersecurity market is characterized by a saturation of point solutions that operate in isolation, which can hinder security efforts and leave organizations vulnerable [6] - Tenable's acquisition of Vulcan Cyber is highlighted as a strategic move to enhance its capabilities in the exposure management market, reinforcing its commitment to providing comprehensive security solutions [6][8]

Core Insights - Fortinet's share prices increased by 74% over the past year, significantly outperforming the Nasdaq Composite index's 17% gain [1] - Despite exceeding revenue and earnings expectations in Q1 2025, Fortinet's stock price fell due to lukewarm guidance [2] Financial Performance - Fortinet's Q1 revenue grew by 14% year over year, while adjusted earnings surged by 35% [4] - The company's remaining performance obligations (RPO) for unified SASE grew by 19% year over year, compared to 12% growth in overall RPO [6][7] - Fortinet's total RPO reached $6.5 billion, with SecOps and unified SASE accounting for nearly one-third of this total [9] Market Opportunities - The SecOps market is projected to nearly double over the next decade, potentially generating $84 billion in annual revenue by 2034 [8] - Fortinet anticipates $1.62 billion in revenue for the current quarter, reflecting a 13% increase from the previous year [10] - Analysts expect Fortinet's earnings to grow at a faster pace in 2027, with raised earnings guidance for 2025 and 2026 [11] Valuation Concerns - Fortinet's stock trades at 42 times earnings, which is considered expensive compared to the Nasdaq-100 index's earnings multiple of 29 [13] - The company's valuation requires a stronger growth profile to justify current levels, leading some investors to seek better entry points [14]

Core Viewpoint - Akamai Technologies, Inc. has announced a private offering of $1.5 billion in convertible senior notes due 2033, which was upsized from a previously announced $1.35 billion offering [1][3] Group 1: Offering Details - The notes will be senior unsecured obligations, maturing on May 15, 2033, with an interest rate of 0.25% per year, payable semiannually starting November 15, 2025 [2] - The initial conversion rate is set at 10.7513 shares per $1,000 principal amount, equating to an initial conversion price of approximately $93.01 per share, representing a 20% premium over the closing price of $77.51 on May 14, 2025 [2] Group 2: Use of Proceeds - Akamai estimates net proceeds from the offering to be approximately $1,479.1 million, or $1,701.3 million if the option for additional notes is fully exercised [3] - The company plans to use about $250 million to repay borrowings under its revolving credit facility and a portion of its $1.15 billion convertible senior notes due 2027 [4] - Approximately $239.1 million will be allocated to cover costs related to convertible note hedge transactions [5] - Akamai intends to repurchase approximately $300 million of its common stock at a price of $77.51 per share from purchasers of the notes [6] Group 3: Repurchase and Conversion Terms - Holders can require Akamai to repurchase their notes for cash on May 15, 2031, if the stock price is below the conversion price [7] - In the event of a fundamental change, holders may also require repurchase at a price equal to 100% of the principal amount plus accrued interest [7] Group 4: Hedge Transactions - Akamai has entered into convertible note hedge and warrant transactions to mitigate potential dilution from the notes [8] - The hedge transactions will cover the same number of shares underlying the notes, and the warrants could have a dilutive effect if the market price exceeds the strike price [8] Group 5: Market Impact - The Option Counterparties may engage in purchasing shares or entering derivative transactions, which could influence the market price of Akamai's common stock and the notes [9]

Group 1 - Palo Alto Networks is set to report its 3Q25 earnings on May 20th, with expectations for NGS ARR between $5.03 billion and $5.08 billion, reflecting a year-over-year increase of 33% to 34% [1] - The company's RPO is anticipated to be around $13.5 billion [1] Group 2 - The article emphasizes the importance of momentum in navigating the technology landscape, particularly in the context of past market events such as the dot com bubble and the AI boom [1]

Financial Data and Key Metrics Changes - For the second quarter ended March 31, 2025, the company reported revenue of $13.1 million, a decrease from $13.7 million in the prior year [5][13] - Service revenue was $4.6 million compared to $5.2 million in the same period last year, reflecting a decline due to a significant multimillion-dollar deal not being repeated [5][13] - Gross profit for the quarter was $4.2 million, representing 32% of sales, down from $6.2 million or 45.3% of sales in the previous year, attributed to higher component costs [13][14] - The company reported a loss of $108,000 or $0.01 per diluted share for the quarter, while for the six months, revenue was $28.5 million compared to $29.1 million in the first half of the previous fiscal year [15][16] Business Line Data and Key Metrics Changes - The technology solutions (TS) business generated $12 million in revenue and remains profitable, with ongoing contracts in the cruise line and ocean freighter markets [10][11] - The AZT Protect product line is gaining traction, with six new customers signed during the quarter, indicating a growing pipeline and potential for future sales [6][9] Market Data and Key Metrics Changes - The company has established a new reseller partnership with Rexel USA, enhancing its market presence in the industrial equipment sector [7] - The South African market is being targeted with a new contract that could generate seven-figure sales, indicating expansion into new geographic areas [10] Company Strategy and Development Direction - The company is focused on expanding its AZT Protect product line and enhancing its sales team to build brand recognition in the operational technology (OT) market [9] - Continued investments in marketing and partnerships are aimed at increasing market awareness and driving future sales growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential challenges in the operating environment, including price increases and reduced customer spending, but remains optimistic about the growth prospects for AZT Protect [12] - The company is entering the second half of the fiscal year with momentum from recent contracts and an expanding customer base [11][35] Other Important Information - The company finished the quarter with over $29 million in cash and cash equivalents, allowing for continued investment and a quarterly cash dividend of $0.03 per share [11][15] - The Board of Directors has authorized a cash dividend payable on June 11, 2025, indicating a commitment to returning value to shareholders [16] Q&A Session Summary Question: Inquiry about the backlog for AZT - Management indicated that the pipeline is growing but refrained from providing specific numbers, stating that deals are at different stages of the sales process [20] Question: Status of the cruise ship business - Management confirmed that the cruise ship business remains steady, with ongoing modifications and contracts being fulfilled as ships become available [22][23] Question: Uniqueness of the cell tower contract - Management highlighted the unique advantages of their solution for cell towers, including space efficiency and compatibility with Linux, which differentiates them from competitors [28] Question: Backlog of cloud-based projects - Management confirmed that the backlog of cloud-based projects has increased and is currently in the twenties, indicating strong demand [31]

Financial Data and Key Metrics Changes - For the second quarter ended March 31, 2025, the company reported revenue of $13.1 million, a decrease from $13.7 million in the prior year [5][13] - Service revenue was $4.6 million compared to $5.2 million in the same period last year, reflecting a decline due to a single multimillion-dollar deal not being repeated [5][13] - Gross profit for the quarter was $4.2 million, representing 32% of sales, down from $6.2 million or 45.3% of sales in the prior year, attributed to higher component costs and the absence of a high-margin contract [13] - The company reported a loss of $108,000 or $0.01 per diluted share for the quarter, while for the six months, revenue was $28.5 million compared to $29.1 million in the previous year [14][15] Business Line Data and Key Metrics Changes - The technology solutions (TS) business generated $12 million in revenue and remains profitable, with ongoing contracts in the cruise line and ocean freighter markets [10][11] - The AZT Protect product line is gaining traction, with six new customers signed during the quarter, indicating a growing pipeline and potential for future sales [6][9] Market Data and Key Metrics Changes - The company is expanding its relationships with AZT Protect resellers, particularly with Rexel USA, enhancing its market presence in the industrial equipment sector [7][8] - A new contract in South Africa for AZT Protect could generate seven-figure sales over the next 18 months, indicating potential growth in the cell tower protection market [10] Company Strategy and Development Direction - The company is focused on enhancing its sales team and building brand recognition for AZT Protect in the operational technology (OT) market [9] - Continued investments in marketing and partnerships are aimed at expanding revenue relationships and increasing market share [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential challenges in the operating environment, including price increases and reduced customer spending, but remains optimistic about the growth prospects for AZT Protect [12] - The company entered the second half of the fiscal year with momentum from recent contracts and is focused on maximizing opportunities [11][34] Other Important Information - The company finished the quarter with over $29 million in cash and cash equivalents and repurchased $384,000 worth of common shares [11][15] - The Board of Directors approved a $0.03 cash dividend for shareholders, reflecting the company's robust balance sheet [15] Q&A Session Summary Question: Inquiry about the backlog for AZT - Management indicated that the pipeline is growing but refrained from providing specific numbers on backlog or contract sizes [18][19] Question: Status of the cruise ship business - Management confirmed that the cruise ship business remains steady, with ongoing modifications and contracts [20][21] Question: Uniqueness of the cell tower contract - Management highlighted the unique space and CPU requirements of cell towers as a competitive advantage, noting that they are reaching out to similar companies [25][26][28] Question: Backlog of cloud-based projects - Management confirmed that the backlog of cloud-based projects has increased and is currently in the twenties [29][30]