Core Viewpoint - SentinelOne's shares have increased by 25% over the past month, outperforming both the Zacks Security industry and the broader Zacks Computer and Technology sector, which saw returns of 19.4% and 22.8% respectively, driven by its strong AI-powered portfolio and expanding clientele despite competition [1] Company Performance - SentinelOne's stock has underperformed compared to competitors like Okta, Broadcom, and Microsoft, which appreciated by 37.7%, 37.5%, and 26.5% respectively over the same period [4] - The company has provided positive guidance for Q1 fiscal 2026, expecting revenues around $228 million, indicating a 22% year-over-year growth, and for the entire fiscal 2026, revenues are expected to be between $1.007 billion and $1.012 billion, implying a 23% growth year-over-year [10][11] Product and Innovation - SentinelOne's Singularity platform offers a comprehensive AI-native security solution across multiple levels, including endpoint, cloud, identity, and data, through a single interface [3] - The Purple AI feature enhances investigation, real-time threat detection, and automated response, significantly reducing response times for enterprises [3] - The company has integrated its services with major platform solution providers like Palo Alto Networks, Fortinet, Okta, and Microsoft, enhancing security workflows for end users [6] Market Expansion - SentinelOne has established a strong partner base, including industry leaders like Alphabet, Lenovo, and Amazon Web Services (AWS), which aids in market reach [5] - In Q4 2025, 12+ new large Managed Security Service Providers adopted SentinelOne's AI SIEM, CNAPP, and Purple AI modules, contributing to recurring revenue growth [7] - The company received FedRAMP High Authorization for its Purple AI and other solutions, allowing it to sell services to federal agencies and critical infrastructure organizations, which is expected to drive top-line growth [9] Customer Growth - By the end of the previous quarter, SentinelOne had over 14,000 direct customers, with a 25% increase in customers having Annual Recurring Revenue (ARR) exceeding $100,000, totaling 1,411 such customers by January 2025 [7]

Group 1: Company Performance - CrowdStrike has seen a stock return of 25.4% over the past six months, outperforming the Zacks Security industry's growth of 13% [1] - Subscription revenues increased by 27% year-over-year, surpassing $1 billion in quarterly revenues in Q4 of fiscal 2025 [4] - The Falcon Flex Subscription Model has contributed to revenue growth by allowing customers to commit upfront and choose modules later, reducing procurement friction [4] Group 2: Customer Adoption and AI Integration - As of January 31, 2025, 67% of CrowdStrike's subscription customers adopted five or more cloud modules, with 48% using six or more, and 32% using seven or more [5] - The Falcon platform is gaining traction as an "AI-native SOC," with strong adoption in various AI-related functionalities [5] - CrowdStrike has integrated its Falcon platform with NVIDIA's Enterprise AI Factory to enhance security for AI systems and partnered with Extrahop to address shadow AI concerns [6] Group 3: Challenges and Investigations - The company is facing negative customer sentiment following a global IT outage incident on July 19, 2024, leading to the implementation of a Customer Commitment Package [7] - CrowdStrike is under federal investigation regarding a $32 million deal with Carahsoft Technology, raising concerns about potential financial irregularities [8][9] - The ongoing investigation poses legal and reputational risks, which may affect investor confidence [10] Group 4: Competitive Landscape - Competitors such as Palo Alto Networks, SentinelOne, and Cisco are positioned to attract CrowdStrike's customer base amid ongoing regulatory scrutiny [11] - CrowdStrike's Falcon Extended Detection and Response competes with similar offerings from SentinelOne and Palo Alto Networks [12][13] Group 5: Financial Outlook - The Zacks Consensus Estimate indicates a year-over-year decline of 12.5% in CrowdStrike's fiscal 2026 earnings [14] - CrowdStrike is trading at a high price-to-sales (P/S) ratio of 21.47X, significantly above the Zacks Security industry's ratio of 14.20X [15] Group 6: Conclusion - The combination of disappointing profit outlook, rising costs, and deteriorating margins makes CrowdStrike less attractive in the near term, leading to a Zacks Rank of 4 (Sell) [17]

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].