Core Insights - Cisco Systems (CSCO) reported third-quarter fiscal 2025 non-GAAP earnings of 96 cents per share, exceeding the Zacks Consensus Estimate by 5.49%, and reflecting a year-over-year increase of 9.1% [1] - Revenues reached $14.15 billion, surpassing the Zacks Consensus Estimate by 0.65%, with an 11.4% year-over-year growth [1] - Cisco shares rose 4.13% in pre-market trading, with a year-to-date gain of 3.6%, outperforming the Zacks Computer & Technology sector's 2.4% decline [1] Revenue Breakdown - Networking revenues for Q3 fiscal 2025 were $7.06 billion, an 8% increase year-over-year [2] - Security revenues surged to $2.01 billion, up 54% year-over-year [2] - Collaboration revenues reached $1.03 billion, growing 4% year-over-year [2] - Observability revenues were $261 million, reflecting a 24% year-over-year growth [2] Product and Service Revenues - Total product revenues were $10.37 billion, accounting for 73.3% of total revenues, with a 15% year-over-year increase [3] - Service revenues amounted to $3.77 billion, making up 26.7% of total revenues, with a 2.6% year-over-year increase [3] - Annualized Recurring Revenues (ARR) for the quarter were $30.6 billion, up 5% year-over-year, with product ARR growth of 8% [3] Regional Performance - Americas revenues increased 14% year-over-year to $8.38 billion [4] - EMEA revenues rose 8% year-over-year to $3.73 billion [4] - APJC revenues climbed 9% year-over-year to $2.03 billion [4] - AI Infrastructure orders from webscale customers exceeded $600 million, surpassing the $1 billion annual target a quarter ahead of schedule [4] Operating Expenses and Margins - Non-GAAP gross margin was 68.6%, expanding 30 basis points year-over-year [5] - Non-GAAP product gross margin increased 200 basis points year-over-year to 49.6%, while service gross margin decreased 170 basis points to 19% [5] - Total non-GAAP operating expenses were $4.82 billion, up 11.5% year-over-year, maintaining 34% of revenues [5] - Non-GAAP operating income was $4.88 billion, up 12.2% year-over-year, with an operating margin of 34.5% [6] Balance Sheet Overview - As of April 26, 2025, cash and cash equivalents and investments totaled $15.6 billion, down from $16.9 billion as of January 25, 2025 [7] - Total debt was $29.2 billion, compared to $31.03 billion at the end of the prior quarter [7] Remaining Performance Obligations - Remaining performance obligations (RPO) at the end of Q3 fiscal 2025 were $41.7 billion, up 7%, with 51% expected to be recognized as revenues over the next 12 months [8] - Product RPO increased by 10%, while services RPO grew by 5% [8] Shareholder Returns - In Q3 fiscal 2025, Cisco returned $3.1 billion to stockholders through share buybacks and dividends, repurchasing approximately 25 million shares of common stock [9] Future Guidance - For Q4 fiscal 2025, Cisco expects non-GAAP earnings between 96 cents and 98 cents per share, with revenues projected in the range of $14.5 billion to $14.7 billion [10] - Non-GAAP gross margins are anticipated to be between 67.5% and 68.5%, and non-GAAP operating margin is expected to be between 33.5% and 34.5% [10] - For fiscal 2025, Cisco forecasts non-GAAP earnings between $3.77 and $3.79 per share, with total revenues expected to be in the range of $56.5 billion to $56.7 billion [11]

Core Insights - CyberArk Software Ltd. reported first-quarter 2025 non-GAAP earnings of 98 cents per share, exceeding the Zacks Consensus Estimate by 24% and reflecting a year-over-year improvement of 30.7% [1] - The company's revenues for the first quarter reached $317.6 million, surpassing the consensus mark by 3.9% and showing a year-over-year increase of 43.4% [1][2] - CyberArk's strong performance is attributed to significant growth in Subscription revenues, which accounted for 78.9% of total revenues, amounting to $250.6 million, a 60% increase from the previous year [3] Revenue Breakdown - Maintenance, professional services, and other revenues constituted 21.1% of total revenues, totaling $67 million, slightly up from $65.3 million year-over-year [4] - The company no longer reports perpetual license revenues separately, as they are now included in the Maintenance, Professional Services, and Other category [4] Profitability Metrics - Non-GAAP gross profit increased by 44.6% year-over-year to $268.6 million, with a non-GAAP gross margin of 84.6%, up 80 basis points from the previous year [5] - Non-GAAP operating income rose 74.2% year-over-year to $57.5 million, with an operating margin expansion of 300 basis points to 18% [5] Key Business Metrics - As of March 31, 2025, Annual Recurring Revenues (ARR) reached $1.22 billion, a 49.8% increase year-over-year, with Subscription ARR at $1.03 billion, up 65% [6] - Recurring revenues for the first quarter were $298.2 million, reflecting a 44.9% increase from the same quarter in 2024 [6] Balance Sheet and Cash Flow - CyberArk's cash and cash equivalents, marketable securities, and short-term deposits totaled $776.1 million as of March 31, 2025, down from $841.1 million at the end of 2024, primarily due to the acquisition of Zilla [7] - Long-term debt increased to $171.2 million as of March 31, 2025, compared to $76 million at the end of the previous year [8] - The company generated operating cash flow of $98.5 million and free cash flow of $95.5 million during the first quarter [8] Guidance - For Q2 2025, CyberArk expects revenues between $312 million and $318 million, with a year-over-year growth of 38.4% [9] - The company revised its full-year 2025 revenue guidance to a range of $1.313 billion to $1.323 billion, up from the previous estimate [11] - Non-GAAP operating income for 2025 is now expected to be between $221 million and $229 million, with non-GAAP earnings projected between $3.73 and $3.85 per share [12]

CyberArk (CYBR) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.05%. A quarter ago, it was expected that this maker of software that detects attacks on privileged accounts would post earnings of $0.71 per share when it actually produced earnings of $0.80, delivering a surprise of 1 ...

分组1 - Fortinet reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and up from $0.43 per share a year ago, representing an earnings surprise of 9.43% [1] - The company achieved revenues of $1.54 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.21%, and an increase from $1.35 billion year-over-year [2] - Fortinet has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has increased approximately 13.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $1.62 billion, and for the current fiscal year, it is $2.44 on revenues of $6.74 billion [7] - The Zacks Industry Rank indicates that the Security industry is currently in the bottom 31% of over 250 Zacks industries, which may impact stock performance [8]

Group 1: Earnings Performance - Qualys reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.46 per share, and up from $1.45 per share a year ago, representing an earnings surprise of 14.38% [1] - The company posted revenues of $159.9 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.78%, compared to year-ago revenues of $145.81 million [2] Group 2: Stock Performance and Outlook - Qualys shares have declined approximately 8.6% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.40 on revenues of $159.62 million, and for the current fiscal year, it is $5.73 on revenues of $649.67 million [7] Group 3: Industry Context - The Zacks Security industry is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, CrowdStrike Holdings, is expected to report quarterly earnings of $0.66 per share, reflecting a year-over-year decline of 29%, with revenues projected at $1.1 billion, up 19.9% from the previous year [9]

Financial Performance - Varonis Systems reported break-even quarterly earnings per share, compared to a Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of 100% [1] - The company posted revenues of $136.42 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.41%, and showing an increase from year-ago revenues of $114.02 million [2] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $147.87 million, and for the current fiscal year, it is $0.16 on revenues of $619.45 million [7] - The estimate revisions trend for Varonis is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Security industry, to which Varonis belongs, is currently in the bottom 31% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Another company in the same industry, Fortinet, is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year change of +23.3%, with revenues anticipated to be $1.54 billion, up 13.5% from the previous year [9][10]

Core Viewpoint - Fortinet is expected to report first-quarter 2025 results on May 7, with anticipated revenues between $1.5 billion and $1.56 billion, and non-GAAP earnings per share in the range of 52-54 cents, indicating a positive growth trajectory despite some near-term challenges [1][5][21]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $1.54 billion, reflecting a year-over-year growth of 13.54%, while the consensus for earnings is 53 cents per share, indicating a year-over-year increase of 23.26% [1]. - The Americas revenue estimate is $635 million, showing a decline of 4.65% year-over-year, while Asia Pacific and Japan revenues are expected to grow by 2% to $308 million. European, Middle Eastern, and African revenues are projected to decrease by 13.3% to $600 million [11][12]. Earnings Surprise History - Fortinet has a history of exceeding earnings estimates, with a 23.33% surprise in the last reported quarter and an average surprise of 24.76% over the last four quarters [3]. Growth Drivers - Key growth drivers include SASE and AI-led security, with FortiSASE ARR growing 96% year-over-year and pipeline activity increasing by 90%. Over 70% of large enterprise customers are utilizing Fortinet's SD-WAN, indicating strong future upselling potential [6][10]. - The company is also experiencing a hardware refresh cycle, particularly among large enterprises, which is expected to contribute to growth in the second half of 2025 [7]. Challenges and Market Conditions - Tariff changes and economic uncertainty may limit first-quarter upside, with noted weaknesses in Canada, Latin America, and the U.S. federal space due to policy and budget delays [8][21]. - Integration of recent acquisitions is expected to reduce operating margins by 40 basis points, and infrastructure spending is projected to rise to $80-$100 million, impacting short-term margins [9][21]. Competitive Landscape - Despite fierce competition from companies like Palo Alto Networks, Zscaler, and CrowdStrike, Fortinet's focus on reducing complexity and expanding sales capacity positions it for long-term growth [10][21]. Stock Performance and Valuation - Fortinet's shares have gained 12.4% year-to-date, outperforming the Computer and Technology sector and the S&P 500 index [13]. - The stock is trading at a significant premium, with a Price/Book ratio of approximately 54.66 compared to the industry's 25.36, indicating high growth expectations from investors [17]. Investment Considerations - While Fortinet shows strong product momentum and demand for SASE solutions, investors are advised to maintain a hold stance due to potential near-term pressures from tariffs, budget delays, and competition [21][22].

Core Viewpoint - Fortinet (FTNT) is positioned well to continue its trend of beating earnings estimates, with a strong history of performance in the Zacks Security industry [1][5]. Earnings Performance - In the most recent quarter, Fortinet reported earnings of $0.74 per share, exceeding the expected $0.60 per share, resulting in a surprise of 23.33% [2]. - For the previous quarter, Fortinet's earnings were $0.63 per share against an expectation of $0.51 per share, leading to a surprise of 23.53% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Fortinet, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5][8]. - The current Earnings ESP for Fortinet is +3.77%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - Fortinet holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of a positive surprise, with historical data showing nearly 70% success in such cases [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions before earnings releases [7].

Core Insights - Zscaler's stock has increased by 18.2% in the past month, outperforming the Zacks Security industry's return of 14.8%, leading investors to consider whether to hold or take profits [1] Group 1: Performance and Demand - The demand for Zscaler's cybersecurity solutions is strong, driven by increasing threats such as nation-state cyber warfare and ransomware attacks [1] - Zscaler achieved a 12-month trailing dollar-based retention rate of 115% in Q2 fiscal 2025, supported by larger bundle sales and robust upsells [2] - Remaining Performance Obligations increased by 28% year over year, indicating strong future revenue commitments [2] Group 2: Government Sector Expansion - Zscaler is enhancing its GovCloud solutions to comply with government security standards, expanding its presence among government agencies [3] - The company added one cabinet-level agency client in Q4, bringing its total to 13 out of 15 U.S. cabinet-level agencies, indicating growth potential in the public sector [4] Group 3: AI Integration and Partnerships - Zscaler is implementing generative AI in its offerings, collaborating with NVIDIA and CrowdStrike to enhance its cybersecurity solutions [5][6] - The integration of NVIDIA's AI technologies strengthens Zscaler's Zero Trust Security model, improving its capabilities in threat intelligence and real-time insights [6] Group 4: Financials and Investments - Zscaler's revenue for fiscal 2025 is projected to increase by 22.2% year over year, reflecting strong demand for its products [8] - Non-GAAP sales and marketing expenses rose by 12.9% year over year to $237.5 million, accounting for 36.7% of Q2 fiscal 2025 revenues, indicating aggressive market strategies [10] - R&D expenses surged by 34.7% year over year to $105 million, representing 16.2% of total revenues, highlighting the company's commitment to innovation [11] Group 5: Valuation Concerns - Zscaler's premium valuation is evident with a Forward 12-month P/S ratio of 11.56X, significantly higher than the sector average of 5.71X, raising concerns about overvaluation [12] Group 6: Investment Recommendation - Despite the premium valuation, Zscaler's AI innovations and strong position in the Zero Trust security space suggest it is a stock worth retaining, currently holding a Zacks Rank 3 (Hold) [15]

The latest trading session saw Palo Alto Networks (PANW) ending at $186.27, denoting a -0.35% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.Coming into today, shares of the security software maker had gained 7.94% in the past month. In that same time, the Computer and Technology sector gained 1.66%, while the S&P 500 lost 0.7%.Market part ...