Core Insights - Palo Alto Networks (PANW) is experiencing consistent growth in its next-generation security (NGS) business, driven by its platformization strategy which encourages customers to adopt multiple products across network, cloud, and security operations [1] Financial Performance - In Q1 of fiscal 2026, PANW's NGS annual recurring revenue (ARR) increased by 29% year over year to $5.85 billion, with platformization being a significant factor [2] - The company added approximately 60 net new platform customers in the first quarter, with customers generating over $5 million in NGS ARR rising to nearly 170, and those over $10 million increasing to 50, both groups showing about 50% growth compared to the previous year [3] - The Zacks Consensus Estimate indicates revenue growth of approximately 14.1% for fiscal 2026 and 13.3% for fiscal 2027 [6] Major Deals and Customer Trends - Large deals contributed to growth, including an $85 million XSIAM deal with a U.S. telecom company and a $33 million SASE deal with a U.S. federal agency, indicating a trend towards fewer tools and simplified security operations [4] - The company is expanding its platform through pending acquisitions of CyberArk Software and Chronosphere, which are expected to enhance identity security and observability, respectively [5] Competitive Landscape - Competitors like CrowdStrike and SentinelOne are also expanding their platforms and innovating with AI, with CrowdStrike's Falcon SIEM showing record net new ARR and SentinelOne achieving 23% year-over-year growth in its ARR [7][9] Valuation and Estimates - PANW's shares have declined by 15.6% over the past three months, compared to a 14% decline in the Zacks Security industry [10] - The company trades at a forward price-to-sales ratio of 11.24X, below the industry's average of 12.17X [14] - Earnings estimates for fiscal 2026 and 2027 imply year-over-year growth of 15% and 12%, respectively, with recent revisions indicating a slight upward adjustment for fiscal 2026 and a downward adjustment for fiscal 2027 [17]

Core Insights - Fortinet (FTNT) is focusing on Unified SASE as a key growth strategy, leveraging its architectural advantages to stand out in a competitive security market [1] - The company’s SASE platform is built on FortiOS, integrating next-generation firewall, SD-WAN, and SASE capabilities, allowing for rapid deployment and reduced complexity compared to multi-vendor solutions [1][2] - Fortinet's Sovereign SASE offering provides deployment flexibility for government and large enterprises, addressing data privacy and regulatory compliance needs [2] Deployment and Growth - As of Q3 2025, 15% of large enterprise customers are using FortiSASE, reflecting a 55% growth, with Unified SASE accounting for 26% of total billings [2] - FortiSASE has shown billings growth exceeding 100%, indicating strong momentum in enterprise adoption [2] - The Zacks Consensus Estimate for Fortinet's 2026 revenues is $7.48 billion, representing a year-over-year growth of 10.8% [3][7] Competitive Landscape - Fortinet faces significant competition in the SASE market from Cisco and Zscaler, with Cisco utilizing a multi-product approach and Zscaler focusing on a cloud-only model [4] - Fortinet's hybrid deployment flexibility contrasts with Zscaler's cloud-exclusive offerings, targeting enterprises that prefer unified management solutions [4] Financial Performance and Valuation - Fortinet shares have decreased by 21.2% over the past six months, underperforming the Zacks Security industry's decline of 9.1% [5] - The company is perceived as overvalued, trading at a price-to-book ratio of 84.25, significantly higher than the sector average of 10.79 [9] - The Zacks Consensus Estimate for Fortinet's earnings in 2026 is $2.89 per share, indicating a year-over-year growth of 7.3% [11]

Core Insights - Cemtrex, Inc. achieved a full-year operating profit and reported revenue of $76.5 million for fiscal year 2025, marking a 14% increase year-over-year from $66.9 million in fiscal year 2024 [1][6] - The company returned to positive operating income of $0.5 million, an improvement of $5.8 million from an operating loss of $5.3 million in the previous year [6][10] Financial Performance - Revenue for the Security segment reached $38.4 million, a 20% increase from $31 million in fiscal year 2024 [6] - Revenue for the Industrial Services segment increased to $38 million, up 9% from $34.8 million in fiscal year 2024 [6] - Gross profit for fiscal year 2025 was $32.3 million, representing 42% of revenues, compared to $27.5 million or 41% of revenues in fiscal year 2024 [6] Segment Performance - The Industrial Services segment experienced revenue growth due to sustained demand across manufacturing, infrastructure, and industrial end markets [4] - The Security segment's revenue growth was supported by enterprise and government customers [5] Balance Sheet and Liquidity - The company reduced outstanding debt by approximately $7.8 million and improved liquidity by about $9 million, enhancing financial flexibility for operations and growth initiatives [7] - Capital and balance sheet actions were taken to remove structural constraints and position the company for future growth [8] Growth Strategy - Cemtrex is pursuing two acquisitions, one under contract and the other under a letter of intent, which are expected to close soon [9] - The company plans to continue pursuing additional acquisitions in 2026 to enhance scale, margins, and operating leverage [9] - Management views fiscal year 2025 as a culmination of a significant operating transformation, with revenue growth from approximately $45 million in fiscal year 2022 to over $76 million in fiscal year 2025 [10] Future Outlook - The company aims to scale operating leverage as the core business is now profitable, with a focus on integrating acquisitions and organic growth to compound operating income [11]

NEW:BTQ Technologies announced a strategic investment in Korean security firm Keypair on December 18, 2025, gaining co-ownership of its post-quantum cryptography IP to jointly develop hardware-rooted security for long-lifecycle critical infrastructure.BTQ Technologies (@BTQ_Tech):BTQ Technologies Acquires Post-Quantum Cryptography IP Through Strategic Investment in Keypair, Accelerating Co-Development of Hardware-Rooted Security for Korea's Critical Infrastructure https://t.co/sawlo61DEg $BTQ https://t.co/S ...

Core Viewpoint - Palo Alto Networks (PANW) has shown a slight increase in share price but has underperformed compared to the S&P 500, raising questions about future performance leading up to the next earnings report [1] Financial Performance - For Q1 fiscal 2026, PANW reported non-GAAP earnings of 93 cents per share, exceeding estimates by 4.5% and reflecting a 19.2% year-over-year increase [2] - Revenues for the same quarter reached $2.47 billion, surpassing estimates by 0.52% and up from $2.14 billion year-over-year [2] Revenue Breakdown - Product revenues increased by 22.6% year-over-year to $434 million, making up 17.5% of total revenues [3] - Subscription and Support revenues, which accounted for 82.5% of total revenues, grew 14.3% year-over-year to $2.04 billion, driven by SASE, Software Firewalls, and XSIAM offerings [3] Key Metrics - Remaining Performance Obligation (RPO) stood at $15.5 billion, a 24% increase year-over-year [4] - Next-Generation Security annualized recurring revenues reached $5.85 billion, representing a 29% year-over-year growth [4] - Non-GAAP gross profit was $1.90 billion, with a gross margin of 76.9%, up 110 basis points sequentially [4] Cash Flow and Balance Sheet - As of October 31, 2025, PANW had $3.07 billion in cash and cash equivalents, an increase from $2.27 billion as of July 31, 2025 [5] - The company generated $1.77 billion in operating cash flow and reported non-GAAP adjusted free cash flow of $1.71 billion, reflecting a 69.2% adjusted free cash flow margin [5] Fiscal Guidance - For fiscal 2026, PANW expects revenues between $10.50 billion and $10.54 billion, revised from a previous target of $10.48-$10.53 billion [6] - Remaining Performance Obligations are projected between $18.6 billion and $18.7 billion, with Next-Gen Security ARR forecasted between $7.00 billion and $7.10 billion, implying 26-27% annual growth [6] Q2 Projections - For Q2 fiscal 2026, revenues are projected between $2.57 billion and $2.59 billion, indicating 14-15% year-over-year growth [8] - RPO is expected in the range of $15.75 billion to $15.85 billion, and Next-Gen Security ARR is forecasted between $6.11 billion and $6.14 billion, suggesting 28% growth [8] - Non-GAAP earnings per share are projected between 93 to 95 cents, indicating 15-17% year-over-year growth [8] Market Position and Estimates - Estimates for PANW have been trending upward, although the stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12] - The company has a strong Growth Score of A but lags in Momentum with a D, resulting in an aggregate VGM Score of C [11]

Core Insights - Palo Alto Networks (PANW) is experiencing steady growth in its Cortex Extended Security Intelligence and Automation Management (XSIAM) platform, with approximately 470 customers and an average annual recurring revenue (ARR) of over $1 million per customer [1][10] Group 1: Growth and Customer Engagement - Cortex XSIAM has signed its largest deal to date, an $85 million contract with a major U.S. telecom company, indicating increasing deal sizes and customer preference for replacing older security tools [2][10] - More than 60% of Cortex XSIAM customers have significantly reduced their median response time from days or weeks to just minutes, showcasing the platform's effectiveness [2] - The number of platform deals linked to Cortex XSIAM has more than doubled year-over-year, indicating that customers are increasingly adopting additional Palo Alto Networks products [3][10] Group 2: Future Outlook and Financial Estimates - Palo Alto Networks plans to enhance Cortex XSIAM with more automation and AI features, which could further drive growth [4] - The Zacks Consensus Estimate predicts revenue growth of approximately 14.1% for fiscal 2026 and 13.3% for fiscal 2027, reflecting positive market expectations [4] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, indicating a year-over-year growth of 14.7% and 12.5%, respectively [15] Group 3: Competitive Landscape - Competitors such as CrowdStrike and SentinelOne are also expanding their platforms and innovating with AI, indicating a competitive market environment [5] - CrowdStrike's Falcon Next-Generation SIEM has shown record net new ARR, suggesting a shift in customer preference towards more efficient solutions [6] - SentinelOne reported a year-over-year growth of 23% in its ARR, driven by the adoption of its AI-first Singularity platform [7] Group 4: Valuation and Market Performance - Palo Alto Networks shares have declined by 10.6% over the past three months, compared to a 6.9% decline in the Zacks Security industry [8] - The company trades at a forward price-to-sales ratio of 11.8X, slightly below the industry's average of 11.9X, indicating a competitive valuation [12]

Core Viewpoint - BTQ Technologies Corp. has announced a strategic investment in Keypair, a leading Korean security company, to enhance its position in post-quantum security and accelerate the development of next-generation hardware-based security technologies [1][6]. Group 1: Strategic Investment - The investment allows BTQ to co-own Keypair's existing and future post-quantum cryptography (PQC) related intellectual property and to jointly develop hardware-rooted security technologies [2][6]. - Keypair's technologies are already deployed in critical national infrastructure in Korea, including systems for LIG Nex1, Hanwha Systems, and Korea Electric Power Corporation (KEPCO) [3][6]. Group 2: Commercial Integration - The collaboration will enable tighter integration of BTQ's post-quantum cryptography and hardware-rooted security capabilities into enterprise and government deployments, leveraging existing relationships with partners like Finger and Danal [5][6]. - This partnership is expected to accelerate real-world implementations across various sectors, including payments, identity, and regulated institutional systems [5][7]. Group 3: Strategic Significance - The investment strengthens BTQ's infrastructure-first positioning by aligning with systems that are already deployed at scale and built for long service lifecycles [7]. - BTQ aims to support standardized, interoperable post-quantum security architectures that can be rolled out across partner ecosystems [5][7].

Core Insights - Knightscope, Inc. has surpassed a $1 million milestone in new sales, client renewals, and expansions, indicating strong momentum and interest in its technology [1] Company Developments - The announcement follows the 2025 Letter from the CEO regarding the establishment of the nation's first Autonomous Security Force, highlighting the company's strategic direction [1]

Core Insights - Fortinet's stock performance is closely tied to the adoption of its Unified SIEM platform, which consolidates threat detection and response capabilities, aimed at simplifying security operations for organizations [1] Financial Performance - In Q3 2025, Fortinet reported billings growth of 13% year-over-year, reaching $1.60 billion, while total revenues increased by 12% to $1.51 billion [2] - Product revenues rose by 7% to $456 million, while services revenues grew by 14% to $1.05 billion, with the Unified SIEM platform significantly contributing to this growth [2] - The company maintained its full-year 2025 guidance for billings between $6 billion and $6.10 billion and revenues of $5.75 billion to $5.80 billion, indicating confidence in continued growth [4] Market Dynamics - The Unified SIEM market is competitive, with established vendors and cloud-native alternatives aggressively vying for market share, which may pressure Fortinet's margins [3] - Customer acquisition costs for SIEM deployments are typically higher than those for traditional firewall sales, potentially extending sales cycles due to the need for significant customer investment in migration and retraining [3] Competitive Landscape - Microsoft is enhancing its position in the unified SIEM market with its Microsoft Sentinel platform, which is integrated within the Azure ecosystem and benefits from AI-powered threat detection capabilities [5] - Palo Alto Networks is also competing with its Cortex XSIAM platform, reporting over 400 customers by late 2025, and emphasizing AI-driven automation [5] Valuation and Estimates - Fortinet shares have declined by 20.4% over the past six months, underperforming the Zacks Security industry's decline of 9.8% and the broader Computer and Technology sector's growth of 22.1% [6] - The company is currently trading at a price-to-book ratio of 84.98, significantly higher than the sector average of 21.7, indicating a potentially overvalued position [10] - The Zacks Consensus Estimate for Fortinet's earnings is $2.69 per share for 2025 and $2.89 per share for 2026, reflecting year-over-year growth of 13.5% for 2025 and 7.52% for 2026 [11]

Got a big one 3:00 today. [music] The professor Jeremy Seagull, he'll be with me. Alex Caneritz, we're going to talk a lot [music] about this AI trade.Avery Sheffield, Warren Pies, Oswat the Motor, and all valuations. And Malcolm Esters, I hope you'll join me at 3:00 Eastern time as we close out this week. Brenda, final trade.>> Palo Alto Networks. It's been a lagger this year. I still think there's a lot of room for growth for wallet share within that security ecosystem to go to that company.>> Kevin Simps ...