How Top Cybersecurity Stocks Stack Up Post Earnings (PANW, FTNT, ZS, CRWD, OKTA)

The cybersecurity sector remains a focal point for investors seeking growth in an increasingly digital world, and recent developments among top players like Palo Alto Networks (PANW), Fortinet (FTNT), Zscaler (ZS), CrowdStrike (CRWD), and Okta (OKTA) have only heightened this attention.

As cyber threats proliferate (See Marks & Spencer’s recent cyber incident, expected to hit operating profit by £300 million before mitigation), and digital transformation accelerates across industries, these companies are positioned at the epicenter of a market expected to see robust expansion for years to come.

It would take a very brave company to think about trimming any planned spending on cybersecurity, with many considering the sector to be almost untouchable from a budgetary perspective. This should provide somewhat of a defensive moat around the industry in times to come, whatever the economic circumstances.

Will it be a case of enough business to go around many of the top names, or can we expect to see only a few winners in the months and years ahead? Here’s our look at how some of the best cybersecurity stocks fared in recent earnings, along with the street’s view on future prospects.

Palo Alto Networks (PANW)

With a market cap of $125billion, we start at the top.

Palo Alto Networks share price has dropped -3.44% in the past 5 days, but over the past 12 months, the stock has added an impressive 21.72%. .

Palo Alto Networks’ strategy of consolidating security offerings onto unified platforms, underpinned by artificial intelligence, is resonating with customers seeking to simplify and strengthen their defenses. The company’s focus on areas such as XSIAM (Cortex), SASE (Prisma), and next-generation firewalls is driving growth, even as the broader economic environment remains uncertain. This approach is expected to continue gaining traction as organizations consolidate vendors and prioritize integrated solutions.

From an operational perspective, the company reported its fiscal third-quarter 2025 earnings on May 20, 2025, surpassing Wall Street’s expectations on both the top and bottom lines. The company posted adjusted earnings of $0.80 per share, outpacing the $0.77 consensus, and revenue of just over $2.3 billion, reflecting a healthy 15% year-over-year increase. However, despite these headline beats, PANW shares tumbled roughly 6.6% after the report, closing at $186.75 by May 23, down from $194.48 prior to earnings.

The sell-off underscores the high expectations investors have for leading cybersecurity names. While adjusted earnings were strong, GAAP earnings came in at $0.37 per share, down from the previous year and below some forecasts. Moreover, the company’s forward guidance called for growth of 19% to 20% which is solid, but not the kind of “beat and raise” that excites growth-oriented investors in high-valuation sectors.

Still, there are bright spots. PANW’s remaining performance obligations (RPO), a key indicator of future revenue, climbed 19% to $13.5 billion. This backlog suggests that demand remains robust, even if near-term growth is moderating. Analysts have generally positive sentiments on Palo Alto Networks after the release of their Q3 2025 financial results, with an average price target of $212.01, representing a potential 13% upside from recent levels.

• Jefferies analysts have raised their target to $225 bolstering the positive sentiments felt from various analysts.
• Wells Fargo have followed suit, also raising the firm’s price target on Palo Alto Networks from $225 to $235 and have kept an “Overweight” rating on the shares
• Northland have since lowered the firm’s price target on Palo Alto Networks from $210 to $177 and they also keep a “Market Perform” rating on the shares
• Bernstein analysts have lowered the firm’s price target on Palo Alto Networks from $229 to $225 and keeps an “Outperform rating” on the shares.
• JPMorgan lowered the firm’s price target on Palo Alto Networks from $225 to $221 and keeps an “Overweight” rating on the shares.
• Barclays lowered the firm’s price target on Palo Alto Networks from $213 to $210and keeps an “Overweight” rating on the shares.

CrowdStrike (CRWD)

CrowdStrike (CRWD) runs Palo Alto close in the market cap race, with the firm valued at $117 billion a leader in endpoint security, leveraging AI and cloud-based analytics to detect and respond to threats in real time.

CrowdStrike achieved annual recurring revenue (ARR) of $3.8 billion, representing 32% year-over-year growth. Free cash flow stood at $323 million, with a 30% margin. Although FY25 guidance was revised cautiously, the adjustments were milder than expected. One of the company’s standout initiatives, Falcon Flex, a customer retention program, has accumulated $700 million in total account value.

Analysts have been mixed in recent days, with BTIG raising their price target from $431 t o $520, as Stifel did the same (raising from $435 to $480). On the other end of the spectrum, you find DZ Bank downgrading CRWD to Sell from Buy ($370 price target), whilst Mizuho downgraded to Neutral ($425 price target maintained).

Despite the outage last year that raised concerns about customer churn, the company has demonstrated strong customer retention and revenue growth. CrowdStrike continues to command premium valuations, trading at the highest revenue multiples in the cybersecurity sector, signalling continued investor confidence even amid operational hiccups.

Fortinet (FTNT)

Fortinet (FTNT) is known for its robust, hardware-centric security appliances and has maintained impressive long-term growth. Fortinet’s stock has gained 10.5% YTD, and an impressive 76.18% over the past 12 months; swelling market cap to $80 billion.

The company reported strong Q1 2025 results, with revenue of $1.54 billion, up 13.8% year-over-year and in line with analyst estimates. The company exceeded EPS expectations with GAAP diluted EPS of $0.56, compared to an estimate of $0.46. Operating margins hit a Q1 record of 29.5%, up significantly from 23.7% a year prior. Free cash flow reached a record $782.8 million, rising from $608.5 million the previous year, and billings increased by 13.5% to $1.60 billion.

Despite beating on earnings and margins, Fortinet’s stock declined following the report. The market’s response was driven by management’s cautious commentary, noting macroeconomic and geopolitical uncertainties. There was also concern about hesitancy in sales efforts and potential delays in customer purchasing decisions.

Analysts remain optimistic about Fortinet’s long-term prospects, particularly due to demand for Secure Access Service Edge (SASE) solutions and strategic acquisitions, but advise a patient approach given near-term headwinds.

Zscaler (ZS)

Zscaler (ZS) specializes in cloud-native security and has consistently posted high revenue growth, capitalizing on the migration to cloud computing. With Zscaler’s stock price having gained 41% this year, and 56% over the past 12 months, market cap has increased to ~ $40 billion.

The company posted revenue of $665 million million for the quarter, alongside a non-GAAP income from operations of $140 million. These results reflect the company’s continued strong growth in the cybersecurity space.

Analysts view Zscaler as a standout in the cloud security sector, citing its growth potential and competitive positioning. Compared to Fortinet, Zscaler has been highlighted as a more favorable growth investment over the coming year. The company is focused on expanding its platform capabilities and customer base, aligning well with ongoing industry trends.

Okta (OKTA)

Okta (OKTA) focuses on identity and access management, a critical component as organizations shift to hybrid and remote work environments.

The company remains a consistent player in the identity management space, with revenues projected to grow from $1.3 billion to $2.6 billion in the coming years. Okta continues to deliver double-digit growth, maintaining a steady and reliable performance trajectory.

May 27th after hours earnings have hit the stock price, with a 12.84% decline following the print. Whilst the company beat on both top and bottom lines, guidance remaining unchanged for 2026 seems to have significantly hit near term sentiment. With Okta’s stock price having gained 59.2% YTD leading into the latest earnings, anything less than a beat and raise was potentially going to have short-term implications. Market cap stood at ~$22 billion leading into earnings, with the extended hours move indicating more than $2 billion will be shaved off that figure today.

While Okta may not generate the same headlines as Fortinet or CrowdStrike, its steady execution and growing market share keep it an important part of the cybersecurity conversation. Its consistent results and long-term outlook underscore its quiet strength in a critical niche of the security market. CEO Todd McKinnon indicated post earnings that the conservative guidance is more a case of the uncertain economic environment rather than any weakness in the company itself.

Summary

The cybersecurity sector remains one of the most compelling growth stories in technology, with leading names like PANW, FTNT, ZS, CRWD, and OKTA continuing to innovate and capture market share.

While short-term volatility, particularly around earnings and guidance can generate sharp price moves, the long-term thesis remains intact. Some of the names have come out of earnings with a hit, whilst others have managed to remain unscathed. Uncertainty surrounding outlook and growth has been particularly harshly treated during this season, not purely in this sector, but by markets at large.

With the pullback that hit markets leading into tariffs now largely erased, valuations are again near highs. In the absence of firm numbers to come in the short term, price action and sentiment may dictate short term moves. What remains clear, is there are likely to be multiple winners in the space.