Core Insights - Rubrik is experiencing significant growth due to its cloud security platform, with cloud ARR increasing by 57% year-over-year to $1.1 billion in Q2 of fiscal 2026, driven by the adoption of the Rubrik Security Cloud platform [1][9] Group 1: Product Innovations and Acquisitions - The launch of "Rubrik Agent Cloud" aims to accelerate AI agent adoption in enterprises while managing security and compliance risks, providing full lifecycle management for AI agents [2] - The acquisition of Predibase enhances Rubrik's AI capabilities, allowing organizations to customize models based on their data, improving accuracy, reducing costs, and automating data governance [3] Group 2: Financial Performance and Projections - For Q3 of fiscal 2026, Rubrik's revenues are projected to be between $319 million and $321 million, indicating a year-over-year growth rate of 35% to 36% [4] - The Zacks Consensus Estimate for Rubrik's loss in fiscal 2026 is set at 49 cents per share, unchanged over the past 30 days, compared to earnings of $1.57 per share in the same quarter last year [12] Group 3: Competitive Landscape - Rubrik faces strong competition in the cybersecurity market from companies like Fortinet and Datadog, both of which are enhancing their service offerings to provide more integrated solutions [5][6] Group 4: Stock Performance and Valuation - Rubrik's shares have increased by 17.5% year-to-date, underperforming the broader Zacks Computer & Technology sector's return of 22.9% and the Internet - Software industry's appreciation of 17.9% [7] - The forward 12-month Price/Sales ratio for Rubrik is 10.42X, significantly higher than the Computer & Technology sector's 6.88X, indicating that Rubrik's stock may be overvalued [10]

Core Insights - Fortinet Inc. (FTNT) reported strong second-quarter 2025 results, with both earnings and revenues surpassing estimates and showing year-over-year improvement [1][9]. Financial Performance - Non-GAAP earnings per share (EPS) for Q2 2025 were 64 cents, exceeding the Zacks Consensus Estimate by 8.47% and growing 12.3% from 57 cents in the same quarter last year [1][9]. - Total revenues reached $1.63 billion, beating the consensus mark by 0.65% and improving 13.6% year over year, driven by an 18% increase in EMEA and 11% growth in both the Americas and APAC [2][9]. - Remaining performance obligations (RPO) rose 12% year over year to $6.64 billion, with current RPO increasing 15% to $3.45 billion [2]. - Total billings increased 15% year over year to $1.78 billion, led by a 21% growth in Unified SASE and a 31% surge in SecOps [2]. Segment Performance - Product revenues increased 12.6% year over year to $508.9 million, accounting for 31.2% of total revenues, driven by upgrade buying and strong growth in operational technology [3]. - Service revenues grew 14.1% year over year to $1.12 billion, representing 68.8% of total revenues, with security subscription revenues rising 15.3% and support services increasing 12.5% [4]. - Service billings grew 17%, marking the highest growth rate in the past six quarters [4]. Margins and Costs - Total gross margin increased by 10 basis points to 81.6%, exceeding the high end of the guided range by 60 basis points due to strong execution and cost control [6]. - Product gross margin rose 180 basis points to 67.8%, while service gross margin declined 80 basis points year over year to 87.8% due to increased investments in hosted security solutions [6]. - Operating margin decreased 200 basis points year over year to 33.1%, but remained 60 basis points above the high end of guidance, impacted by increased investments in sales headcount and foreign exchange headwinds [7]. Cash Flow and Balance Sheet - Fortinet ended Q2 2025 with cash and cash equivalents and short-term investments of $4.56 billion, down from $4.78 billion at the end of Q1 2025 [10]. - Cash flow from operations was $451.9 million for Q2 2025, a decrease from $863.3 million in the previous quarter, while free cash flow was $284.1 million, down from $782.8 million [10]. Guidance - For Q3 2025, Fortinet estimates revenues between $1.67 billion and $1.73 billion, with billings expected in the range of $1.76 billion to $1.84 billion [11]. - For the full year 2025, revenues are projected between $6.675 billion and $6.825 billion, with services revenues expected between $4.55 billion and $4.65 billion [12].

New services enhance identity management, secure file storage and recovery, and communication, advancing the Fortinet Security Fabric and global cloud network vision SUNNYVALE, Calif., Aug. 06, 2025 (GLOBE NEWSWIRE) -- News Summary FortiIdentity: A long-established Fortinet identity and access management (IAM) solution, now delivered from FortiCloud, offers enterprises a full-featured, cloud-native approach to secure identity management. It provides secure single sign-on (SSO), multifactor authentication (M ...