Financial Performance - Palo Alto Networks reported a revenue growth of 15% year over year, reaching $9.22 billion for fiscal 2025 [3] - The Annual Recurring Revenue (ARR) for Next Generation Security grew 32% year over year to $5.58 billion, while the total Platform Offering (PO) increased by 24% year over year to $15.8 billion [3] - Network Security ARR reached $3.9 billion, marking a 35% year over year increase, driven by strong adoption of software firewalls and SASE solutions [4] Business Line Performance - The Cortex segment saw a significant expansion in its XSIAM customer base, which more than doubled year over year, indicating strong adoption of Next Generation Security capabilities [5] - The Security Operating Platform also experienced broad-based momentum, with NGS ARR reaching $1.7 billion, an approximately 25% year over year increase [4] Market Trends - The cybersecurity landscape is undergoing a transformation due to the rise of generative and agentic AI, prompting the company to evolve its product offerings to protect customers using AI tools [6] - The company announced its intent to acquire CyberArk, aiming to reshape the identity security category and enhance its multi-platform strategy [7][8] Strategic Direction - The company is committed to innovation across all security platforms, focusing on the integration of AI into its offerings [4][6] - The acquisition of CyberArk is expected to establish a leading platform for end-to-end AI security, positioning the company as a key player in the evolving cybersecurity landscape [8] Management Commentary - Management emphasized the importance of their dedicated workforce of over 16,000 employees in driving innovation and delivering cutting-edge technologies [9] - The management expressed confidence in the company's ability to protect customers from increasing cyber threats through their innovative solutions [9] Other Important Information - The company spent $567 million on share buybacks in 2024, raising concerns about the impact of such financial engineering on executive compensation metrics [19] - Shareholder proposals regarding adjusting financial performance metrics to exclude share repurchase impacts and declassifying the board were discussed, with the board recommending against these proposals [20][28] Q&A Summary Question: Concerns about executive compensation linked to share buybacks - Shareholders urged the board to adopt a policy that adjusts financial performance metrics to exclude the impact of share repurchases when determining executive compensation [20] Question: Issues with classified board structure - A shareholder criticized the board's practice of making director appointments outside the annual meeting cycle, arguing it undermines shareholder oversight and accountability [24]

Financial Performance and Key Metrics - Fiscal 2025 revenue grew 15% year over year to $9.22 billion [2] - Next Generation Security (ARR) increased 32% year over year to $5.58 billion [2] - PO grew 24% year over year to $15.8 billion [2] Business Line Performance - Network Security (NGS ARR) reached $3.9 billion, a 35% year over year increase [3] - Security Operating Platform (NGS ARR) saw a 25% year over year increase, reaching $1.7 billion [3] - Cortex's XSIAM customer base more than doubled year over year, indicating strong adoption [3] Market Data and Key Metrics - The cybersecurity landscape is shifting due to the emergence of generative and agentic AI, influencing product offerings [4] Company Strategy and Industry Competition - The focus for fiscal 2025 was on evolving product offerings to support customer adoption of AI tools [4] - The launch of Prisma AIRS, a comprehensive AI security platform, was a key strategic move [4] - The intent to acquire CyberArk was announced to enhance identity security capabilities [4] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of innovation and the role of employees in driving the company's success [5] - The company is committed to protecting customers from increasing cyber threats [5] Other Important Information - Shareholder proposals regarding executive compensation and board declassification were discussed, with mixed outcomes [10][18] Q&A Session Summary Question: Concerns about executive compensation linked to stock buybacks - A shareholder urged the board to adjust financial performance metrics to exclude the impact of share repurchases when determining executive compensation [10][11] Question: Proposal for declassifying the board - A shareholder argued that declassifying the board would improve accountability and align with best practices in corporate governance [13][14] Response from Management - The board recommended voting against the shareholder proposals, citing reasons outlined in the company's proxy statement [15]

Core Insights - Meta Platforms, ASML, and CrowdStrike are potential candidates for stock splits in 2026, which could enhance accessibility for average investors and serve as a positive catalyst for their stock prices [1][2]. Meta Platforms - Meta Platforms is the only stock among the "Magnificent Seven" that has never split its stock, with a current price nearing $700, suggesting a possible split in 2026 [4]. - The company aims to bolster market confidence in its significant AI infrastructure investments while reducing spending on metaverse projects, indicating a strategic shift [5]. - Meta's AI initiatives have positively impacted ad revenue, contributing to a 26% revenue increase last quarter [7]. ASML - ASML's stock price exceeds $1,000, making it a strong candidate for a stock split in 2026, with its last split occurring in April 2000 [8]. - The company holds a monopoly on extreme ultraviolet lithography (EUV), essential for advanced semiconductor chips, positioning it well for the ongoing AI boom [9]. - ASML is developing a new generation of lithography technology, High-NA EUV, which will further enhance chip manufacturing capabilities [11]. CrowdStrike - CrowdStrike's stock price is over $500, and it has never split its stock, making 2026 a potential year for a split as its annual recurring revenue (ARR) begins to accelerate [12]. - Following a significant IT outage in 2024, CrowdStrike introduced a flexible licensing model, Falcon Flex, which has improved customer engagement and led to a 23% ARR growth last quarter [14]. - The company is experiencing strong momentum with its next-generation solutions, with nearly half of its customers using six or more modules [15].

Financial Data and Key Metrics Changes - For fiscal year 2025, the company generated $530,000 in revenue, an increase from $293,000 in fiscal year 2024, primarily due to the commencement of a multi-year contract in the Middle East [17] - Revenue in the second half of fiscal year 2025 was $463,000, significantly higher than the first half's $67,000, indicating a positive revenue trajectory [18] - The company ended fiscal year 2025 with $1.2 million in contractual revenue expected to be recognized in fiscal year 2026 [15][18] - Administrative expenses for fiscal year 2025 were $34.7 million, up from $25.4 million in fiscal year 2024, mainly due to a reduction in foreign exchange gains and increased operational costs [19][21] Business Line Data and Key Metrics Changes - Revenue from the Arqit SKA Platform as a Service and Arqit Network Secure products totaled $476,000 in fiscal year 2025 [18] - Professional services and maintenance revenue was $54,000 for the period, compared to $102,000 in fiscal year 2024 [19] Market Data and Key Metrics Changes - The company has seen increased activity with prospective customers, signing 12 demonstration and test engagements in the first two months of fiscal year 2026, indicating a strong market migration towards post-quantum cybersecurity [6] - The market is experiencing a shift from awareness of quantum threats to action, with organizations increasingly recognizing the need to upgrade their cryptographic posture [4][5] Company Strategy and Development Direction - The company is focused on broadening its product and service offerings, including the acquisition of Amplify's encryption intelligence product to enhance customer engagement [3][7] - Collaborations with Intel and Sparkle aim to expand product solutions into confidential computing and quantum-secure communications [4][9] - The company is targeting the telecom and defense sectors for growth, having secured contracts with major players like Sparkle and RHD Telecom [11][13] Management's Comments on Operating Environment and Future Outlook - Management believes fiscal year 2025 represents a trough year for revenue, with expectations of building upon the momentum into fiscal year 2026 [15] - The company is optimistic about the increasing demand for quantum-safe solutions and its position in the market to capture this demand [15][23] Other Important Information - The company has a cash and cash equivalents balance of $36.9 million as of September 30, 2025 [21] - The company has 91 employees as of September 30, 2025, compared to 82 the previous year, indicating growth in operational capacity [20] Q&A Session Summary Question: What is driving the higher level of demonstrations and activity recently? - Management noted that significant news flow on quantum advancements and regulatory pressures are driving organizations to take action regarding their cryptographic posture [26][27] Question: What does the sales cycle look like for Encryption Intelligence compared to legacy products? - Management indicated that the sales cycle for Encryption Intelligence is shorter, with telco operators showing interest in using the tool on an ongoing basis [30][31] Question: Are there additional acquisition opportunities similar to the Amplify purchase? - Management expressed interest in acquiring companies that align with data sovereignty and confidential computing, particularly those lacking deep intellectual property in quantum-safe technologies [32][33] Question: Should we anticipate any change in operating expenses for fiscal 2026? - The CFO confirmed plans to maintain current operating expense levels, targeting a maximum cash spend of $2.5 million per month [35]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company generated $530,000 in revenue, an increase from $293,000 in fiscal year 2024, primarily due to the commencement of a multi-year contract in the Middle East [17][18] - The first half of fiscal 2025 revenue was $67,000, while the second half saw a significant increase to $463,000, driven by new contracts [18] - Administrative expenses for fiscal year 2025 were $34.7 million, up from $25.4 million in fiscal year 2024, mainly due to reduced foreign exchange gains and increased operational costs [19][20] - The operating loss for the period was $38.5 million compared to a loss of $26.9 million in fiscal year 2024, attributed to higher administrative expenses and an exceptional item related to a class action lawsuit [20][21] Business Line Data and Key Metrics Changes - Revenue from the Arqit SKA Platform as a service and Arqit Network Secure products totaled $476,000 for fiscal year 2025, compared to $191,000 in fiscal year 2024 [18][19] - Professional services and maintenance revenue was $54,000 for the period, down from $102,000 in fiscal year 2024 [19] Market Data and Key Metrics Changes - The company has seen increased activity with prospective customers, signing 12 demonstration and test engagements in the first two months of fiscal year 2026, indicating a strong market migration towards post-quantum cybersecurity [6][16] - The company is experiencing momentum in customer engagements, particularly in the telecom and defense sectors, with significant contract wins [12][14] Company Strategy and Development Direction - The company aims to broaden its product and service offerings, including the acquisition of Amplify's encryption intelligence product to enhance customer engagement in post-quantum cryptography [3][8] - Collaborations with Intel and Sparkle are expected to expand product solutions to include confidential computing and quantum-secure communications [4][10] - The focus remains on building momentum in key markets, particularly telecom and defense, while addressing the increasing need for enhanced cryptography [15][16] Management's Comments on Operating Environment and Future Outlook - Management believes fiscal 2025 represents a trough year for revenue, with expectations of growth in fiscal year 2026 driven by increasing market demand for quantum-safe solutions [16][22] - The company is optimistic about its position in the marketplace, anticipating that organizations will begin their migration journey towards post-quantum encryption [16][22] Other Important Information - The company ended fiscal year 2025 with $1.2 million in executed contracts that could be recognized in fiscal year 2026, indicating a positive revenue trajectory [16][18] - The company has a cash and cash equivalents balance of $36.9 million as of September 30, 2025 [21] Q&A Session Summary Question: What is driving the higher level of demonstrations and activity recently? - Management noted that significant news flow on quantum advancements has increased awareness and urgency among organizations to address quantum threats [24][25] Question: What does the sales cycle look like for Encryption Intelligence compared to legacy products? - The sales cycle for Encryption Intelligence is shorter, with organizations eager to use the tool for ongoing assessments of their cryptographic landscape [27][28] Question: Are there additional acquisition opportunities similar to the recent asset purchase? - Management is exploring tuck-in opportunities related to data sovereignty and confidential computing, which align with the company's strategic focus [30] Question: What is the competitive landscape like for post-quantum security? - Management acknowledged increased competition from traditional security vendors but emphasized the company's unique position and extensive experience in the field [32][33] Question: What industries are showing interest in the company's solutions? - The company is seeing interest from regulated industries, critical infrastructure sectors, and organizations rich in intellectual property, particularly in financial services and life sciences [35][36]

Core Insights - Globant's report "Tech Trends 2026" outlines five key forces that will shape the future of AI maturity in enterprises, emphasizing the transition from AI experimentation to operational, scalable intelligence [1][3][4] Group 1: Key Forces Defining the Future - **Agentic AI**: Transitioning from passive assistants to autonomous systems that deliver measurable ROI, particularly in retail through personalized interactions and secure transactions [5] - **Quantum Communication**: Emerging as a disruptor with quantum encryption enabling ultra-secure data exchange, projected to contribute 18% of global quantum algorithm revenues from AI applications by 2026 [5] - **Robotic Function**: Robotics expanding beyond warehouses into sectors like healthcare and logistics, with the global robotics market expected to reach nearly $280 billion by 2034 [5] - **Ambient Intelligence**: Enhancing user experience by anticipating needs through predictive AI and edge computing, thus redefining efficiency [5] - **AI in Cybersecurity**: Organizations utilizing AI for threat detection save an average of $1.9 million per breach, highlighting the need for predictive, AI-powered defense mechanisms [5] Group 2: Industry Evolution and Strategic Implications - The evolution of AI in 2026 necessitates enterprises to advance operational strategies, integrating AI seamlessly into their organizations for effective digital transformation [6] - Companies that establish clear guidelines and governance frameworks are beginning to see measurable impacts from their AI initiatives, marking a shift towards AI maturity [2][3]

Core Insights - A fundamental shift in global finance is occurring, with institutions moving towards autonomous engines that operate with unmatched speed and precision, driven by machine reasoning and real-time settlement networks [1][6][10] - The success of this transition relies on the ability to verify every action within these systems, as automation fails without trust in the environment [2][4][7] Company Overview - HUB Cyber Security (NASDAQ:HUBC) is addressing the gap in the market by providing a confidential computing engine that validates data, identity, and computation at the hardware level, ensuring the integrity of every action [3][9] - HUB Compliance™ extends this architecture to embed evidence directly into transaction paths, allowing for intrinsic proof of authenticity that regulators and counterparties can accept confidently [4][5] Market Positioning - HUB has transitioned from an emerging provider to a recognized institutional infrastructure player, highlighted by a significant aerospace and defense agreement that emphasizes the importance of trust in financial systems [5][9] - The company's model aligns with the increasing demands for real-time settlement, stricter onboarding standards, and operational transparency, making it a timely solution for institutions [6][8] Technological Impact - HUB's architecture supports the necessary trust layer for autonomous finance, enabling institutions to automate processes without sacrificing verification, thus transforming automation into a growth engine for the financial ecosystem [7][10] - The integration of confidential computing and embedded verification enhances regulatory confidence and accelerates operational processes, allowing for predictable and resilient workflows [8][9]

Financial Data and Key Metrics Changes - The company surpassed $1 billion in annual recurring revenue (ARR), closing fiscal Q3 at $1.04 billion, representing a 28% year-over-year increase [18] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [19] - Revenue for fiscal Q3 2026 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [22] - Adjusted operating income was $56 million, or a 19.8% margin, exceeding guidance due to higher term subscription revenue and disciplined expense management [22] - Net revenue retention (NRR) was 114% for the quarter [22] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sale motions driven by non-employee risk management, machine identity security, and data access security solutions, which collectively more than doubled in ARR year-over-year [19] - The company experienced a strong migration quarter, with more than half of platform modernizations including at least one emerging cross-sale product [20] Market Data and Key Metrics Changes - The demand for new products introduced at the Navigate conference was strong, with orders booked for each newly available product despite only being generally available for one month [19] - The company noted broad-based strength across geographies and industry verticals [19] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving towards real-time, adaptive identity solutions [5][6] - A new Flex licensing model was introduced to meet customers' needs in their identity journey, allowing for more choice and flexibility in adopting innovations [10] - The company aims to expand its family of identity security solutions while simplifying deployment and accelerating time to value [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline, indicating strong engagement across both new and existing customers [15] - The company is committed to building for the long term, focusing on the depth of identity context and breadth of identities protected [16] - The management highlighted the importance of adapting to the expanding threat landscape and the need for organizations to modernize their identity security [15][16] Other Important Information - The company completed its largest-ever global user conference, where significant product innovations were unveiled [7] - The introduction of the SailPoint Accelerated Application Management solution aims to simplify the administration of identity programs [14] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted strong demand from both new customers and existing customers excited about agentic security [26][27] Question: Any insights on the ramp into Q4? - Management expressed confidence in the overall health of the business and indicated that Q4 would represent about a third of total year-net new ARR [31][33] Question: How does SailPoint differentiate itself in a consolidating market? - Management emphasized the breadth and depth of their identity solutions, which they believe creates a defensible moat against competitors [39][42] Question: Can you discuss the Savvy acquisition and its impact? - Management highlighted that the Savvy technology enhances application discovery and governance, allowing for quicker deployment and deeper insights [46][49] Question: How is the company using AI internally? - Management confirmed that AI is being embraced across various business functions, with exciting use case possibilities emerging [58][59] Question: What are the expectations for fiscal '27? - Management indicated a focus on growth over profitability while maintaining strong margin performance [98][99] Question: What hurdles might arise in customer adoption of Agentic AI? - Management acknowledged the need to help customers manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [102][103]

Financial Data and Key Metrics Changes - In fiscal Q3 2026, the company surpassed $1 billion in annual recurring revenue (ARR), closing at $1.04 billion, representing a 28% year-over-year increase [18] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [19] - Revenue for fiscal Q3 2026 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [22] - Adjusted operating income was $56 million, yielding a 19.8% margin, exceeding guidance due to higher term subscription revenue and disciplined expense management [22] - Net revenue retention (NRR) for the quarter was 114% [22] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sell motions driven by Non-Employee Risk Management, Machine Identity Security, and Data Access Security solutions, which collectively more than doubled in ARR year-over-year [19] - The company experienced a robust migration quarter, with more than half of platform modernizations including at least one emerging cross-sell product [20] Market Data and Key Metrics Changes - The demand for new products introduced at the Navigate conference was strong, with orders booked for each newly available product despite only being generally available for one month [19] - The company noted broad-based strength across geographies and industry verticals, indicating a healthy expansion of the pipeline [19] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving towards real-time, adaptive identity solutions [5][6] - The introduction of the new Flex licensing model aims to provide customers with more choice and flexibility in adopting innovations [10] - The company is positioning itself as a strategic identity layer in the security landscape, emphasizing the depth of identity context and breadth of identities protected [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline and engagement with both new and existing customers, indicating a strong outlook for Q4 and beyond [15] - The company is committed to building for the long term, focusing on governance and adaptive identity models to secure enterprises effectively [16] Other Important Information - The company completed its largest-ever global user conference, where significant product innovations were unveiled [7] - The company is leveraging AI internally to enhance various aspects of the business, from product development to operational functions [59] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted strong demand from both new customers and existing customers excited about Agentic security, with the introduction of Flex pricing expected to accelerate interest [26][28] Question: Any insights on the ramp into Q4? - Management expressed confidence in the overall health of the business, indicating that Q4 is expected to represent about a third of total year-net new ARR, consistent with prior years [31][33] Question: How does SailPoint differentiate itself in a consolidating market? - Management highlighted the company's breadth and depth in identity management, emphasizing the challenges competitors face in replicating this capability [39][42] Question: Can you discuss the Savvy acquisition and its impact? - Management indicated that the Savvy acquisition enhances the company's ability to discover applications quickly, which is crucial for governance and compliance [46][48] Question: How is the company using AI internally? - Management confirmed that AI is being embraced across various business functions, with exciting use case possibilities emerging [59] Question: What are the expectations for fiscal 2027? - Management indicated a focus on growth over profitability, with a commitment to delivering high ARR growth while expanding margins [98][99] Question: What hurdles might arise in customer adoption of Agentic AI? - Management acknowledged the need to help customers manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [102][104]

Financial Data and Key Metrics Changes - In fiscal Q3 2026, the company surpassed $1 billion in annual recurring revenue (ARR), closing at $1.04 billion, representing a 28% year-over-year increase [16][17] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [17] - Revenue for Q3 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [19] - Adjusted operating income was $56 million, yielding a margin of 19.8%, driven by higher term subscription revenue and disciplined expense management [19] - Net revenue retention (NRR) for the quarter was 114% [19] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sell motions driven by non-employee risk management, machine identity security, and data access security solutions, which collectively more than doubled in ARR year-over-year [17] - The company experienced a strong migration quarter, with more than half of platform modernizations including at least one emerging cross-sale product [18] Market Data and Key Metrics Changes - The demand for identity security solutions is accelerating as organizations recognize the need for adaptive identity management in response to expanding threats [4][8] - The company noted strong initial interest in new products introduced at the Navigate conference, with orders booked for each newly available product despite being generally available for only one month [17] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving from static compliance-first approaches to real-time adaptive identity solutions [4][6] - The introduction of the Flex licensing model aims to provide customers with more choice and flexibility in adopting innovations [9] - The company is positioning itself as a strategic identity layer in the security landscape, emphasizing the depth of identity context and breadth of identities protected [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and diversified customer engagement, indicating that organizations are increasingly turning to the company for identity security solutions [13] - The company is committed to building for the long term, focusing on governance and adaptive identity models to efficiently protect enterprises [14] Other Important Information - The company completed its largest-ever global user conference, Navigate, unveiling significant product innovations [5][6] - The company is leveraging AI internally to enhance various aspects of the business, from product development to operational efficiency [40] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted that both new customers and existing customers are excited about the developments in agentic security, with the Flex pricing model expected to accelerate interest [24] Question: Can you provide insights on the fourth quarter's new business for ARR? - Management expressed confidence in the overall health of the business and indicated that Q4 is expected to represent about a third of total year-net new ARR [27] Question: How does SailPoint differentiate itself in a market defined by consolidation? - Management highlighted the company's defensible moat in breadth and depth of identity types, emphasizing the challenges competitors face in replicating this capability [29][31] Question: Can you discuss the Savvy acquisition and its impact on customer onboarding? - Management indicated that the Savvy technology enhances application discovery and governance, allowing for quicker onboarding and deeper compliance [33][34] Question: What hurdles might customers face in adopting Agentic AI for identity security? - Management acknowledged the need for organizations to manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [60][61]