Group 1 - Cybersecurity stocks have experienced significant volatility since November last year, primarily due to investor concerns regarding AI [1] - The article highlights the losses suffered by three specific cybersecurity stocks, indicating a trend of declining performance in this sector [1] Group 2 - The investment landscape for publicly listed securities, particularly in the tech sector, is influenced by various factors including market sentiment and technological advancements [2] - The focus on capital preservation strategies is emphasized, reflecting lessons learned from past financial crises [2]

Core Insights - Palo Alto Networks (PANW) and Cisco Systems (CSCO) are significant players in the cybersecurity sector, with PANW focusing on next-generation firewalls, cloud security, and AI-driven threat detection, while CSCO emphasizes Threat Intelligence, Detection, and Response offerings, including Secure Access Service Edge (SASE) and Network Security [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2031, driven by increasing complex attacks such as credential theft and social engineering [2] Company Analysis: Palo Alto Networks (PANW) - PANW is recognized as a leader in cybersecurity, providing comprehensive solutions for network security, cloud security, and endpoint protection [4] - The company’s SASE segment is its fastest-growing area, with Annual Recurring Revenues (ARR) increasing by 40% year-over-year in Q2 of fiscal 2026 [5] - A significant deal worth over $50 million was secured with a global automotive leader for a major security transformation, highlighting PANW's strong market position [6] - PANW faces challenges from integration and acquisition-related costs, including a $25 billion acquisition of CyberArk and a $3.35 billion acquisition of Chronosphere, leading to increased costs and potential profitability impacts [7] - The issuance of 112 million shares as part of the CyberArk deal is expected to cause significant equity dilution, with EPS guidance for fiscal 2026 revised down to $3.65-$3.70 from $3.80-$3.90 [8] Company Analysis: Cisco Systems (CSCO) - CSCO is making steady advancements in its security business, with new products like Secure Access and AI Defense gaining traction, now representing about one-third of its security portfolio [9] - The company added 2.5 million Secure Access users in Q2 of fiscal 2026, with new customer acquisitions contributing significantly to new bookings [11] - CSCO has reported three consecutive quarters of double-digit growth in firewall units, supported by new high-end firewall platforms [12] - The company is embedding AI deeper into its security offerings, enhancing its capabilities to address advanced threats [12] - CSCO's earnings estimates for fiscal 2026 and 2027 have been revised upward, with current estimates at $4.13 and $4.46, respectively [17] Market Performance - Over the past six months, CSCO shares have increased by 17.2%, while PANW shares have decreased by 17.7% [19] - CSCO is trading at a forward sales multiple of 4.95X, which is lower than PANW's 9.31X, making CSCO more attractive for value-seeking investors [21] Conclusion - The analysis suggests that CSCO presents a more compelling investment opportunity due to its steady execution, strong product adoption, and favorable earnings revisions, while PANW faces near-term risks from integration costs and share dilution [23][24]

Key Takeaways ALLT is expected to post Q4 revenues of $27.93M, up 12.2% Y/Y, with EPS of 7 cents.Allot's SECaaS ARR jumped about 60% Y/Y in Q3, lifting recurring revenues to 63% of total sales.ALLT trades at 4.21X forward sales, below sector and major cybersecurity peers.Allot Inc. (ALLT) is scheduled to report its fourth-quarter 2025 results on Feb. 25.The Zacks Consensus Estimate for Allot’s fourth-quarter 2025 revenues is pegged at $27.93 million, which implies growth of 12.2% from the year-ago reported ...

Core Insights - Zscaler, Inc. (ZS) is experiencing significant growth from its Z-Flex program, which allows customers to commit to spending levels while maintaining flexibility to adjust modules later, potentially driving future growth [1][2] Group 1: Z-Flex Program Performance - Z-Flex was introduced in Q3 of fiscal 2025 and generated over $175 million in total contract value bookings in Q1 of fiscal 2026, marking a 70% sequential increase, indicating strong customer interest in flexible licensing [2][11] - The program is enhancing relationships with existing clients, leading to increased annual spending as enterprises adopt multiple modules under Z-Flex, which is crucial for Zscaler's strategy focused on platform adoption across various security offerings [3][5] - Z-Flex is facilitating larger deal sizes, as customers are more inclined to commit to broader deployments knowing they can adjust product choices later, thus accelerating sales cycles [4][11] Group 2: Financial Outlook - The early success of the Z-Flex program suggests it could become a sustainable growth engine for Zscaler, with the Zacks Consensus Estimate projecting revenue growth of 23.2% for fiscal 2026 and 19.8% for fiscal 2027 [5] - Zscaler's shares have decreased by 14.8% over the past year, slightly better than the Zacks Security industry's decline of 15.6% [9] - The company trades at a forward price-to-sales ratio of 7.37, which is below the industry average of 10.01, indicating potential undervaluation [13] Group 3: Competitive Landscape - Zscaler faces competition from Palo Alto Networks, Inc. and CrowdStrike Holdings, Inc., both of which employ similar platform-driven growth strategies with flexible bundles to enhance customer spending [6][8] - Palo Alto Networks offers subscription pricing and bundled offerings that can provide 10-15% savings compared to purchasing products separately, encouraging broader platform adoption [7] - CrowdStrike's Falcon platform bundles and Falcon Flex licensing model allow customers to add modules without new procurement cycles, contributing to a significant year-over-year growth in annual recurring revenue [8]

Akamai Technologies (NasdaqGS:AKAM) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsAidan Daniels - Equity Research AssociateArti Vula - Equity Research AssociateEd McGowan - CFOFatima Boolani - Co-Head of US Software Equity Research and Managing DirectorMark Stoutenberg - Head of Investor RelationsRishi Jaluria - Managing Director of Software Equity ResearchRoger Boyd - Executive DirectorSanjit Singh - Executive DirectorTom Leighton - CEOVijay Homan - Equity Research AssociateConfer ...

Akamai Technologies (NasdaqGS:AKAM) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Speaker8Good day, and welcome to the Q4 2025 Akamai Technologies Inc earnings conference call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone ...

Palo Alto Networks Announces Offer to Purchase Relating to CyberArk Software Ltd.'s 0.00% Convertible Senior Notes due 2030 [Accessibility Statement] Skip NavigationSANTA CLARA, Calif., Feb. 19, 2026 /PRNewswire/ -- Today, Palo Alto Networks, Inc. (NASDAQ: PANW) ("Palo Alto Networks") announced that, in connection with the closing of the transaction (the "Acquisition") contemplated by the Agreement and Plan of Merger, dated as of July 30, 2025, by and among Palo Alto Networks, CyberArk Software Ltd., a comp ...

Fourth quarter highlights Revenue of $1.095 billion, up 7% year-over-year and up 6% when adjusted for foreign exchange*Cloud Infrastructure Services** revenue of $94 million, up 45% year-over-year and up 44% when adjusted for foreign exchange*Security revenue of $592 million, up 11% year-over-year and up 9% when adjusted for foreign exchange*; Guardicore Segmentation and API Security revenue of $90 million, up 36% year-over-year and up 34% when adjusted for foreign exchange*GAAP net income per diluted share ...

Shares of most of the cybersecurity companies Jefferies covers are trading at the lowest valuations seen over the past five years. ...

Core Viewpoint - The iShares Exponential Technologies ETF (XT) has achieved a 22.63% return over the past year, outperforming major benchmarks like QQQ and SPY, by diversifying across over 500 holdings in sectors such as AI, genomics, and robotics [1] Group 1: ETF Overview - XT spreads capital across 500+ holdings, with no single position exceeding 3% of assets, aiming to provide balanced exposure to innovation [1] - The fund allocates 30.2% to information technology and 16% to healthcare, with significant investments in semiconductors, cybersecurity, biotech, and cloud infrastructure [1] - XT has $3.7 billion in assets and a 0.46% expense ratio, offering institutional-quality access at a reasonable cost [1] Group 2: Performance Analysis - Over the past year, XT's return of 22.63% significantly outpaced both QQQ and SPY, benefiting from broader sector exposure [1] - Year-to-date in 2026, XT is up 3.91%, while QQQ has entered negative territory, indicating continued momentum [1] - However, over five years, XT's cumulative gain of approximately 31% lags behind QQQ's 83%, highlighting the impact of concentrated mega-cap leadership during that period [1] Group 3: Trade-offs and Considerations - XT's 0.76% dividend yield is not suitable for income-focused investors, as recent distributions appear to be special capital gains rather than sustainable income [1] - The fund's diversification may limit its ability to capitalize on rallies driven by a few mega-cap companies, which can be a disadvantage in strong market cycles [1] - Active rebalancing introduces tracking error, as performance is influenced by the manager's sector timing decisions [1]