Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Palo Alto Networks (NASDAQ: PANW) and its peers.

Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.

The 9 cybersecurity stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.9% above.

While some cybersecurity stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.

Palo Alto Networks (NASDAQ: PANW)

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Palo Alto Networks reported revenues of $3.41 billion, up 34.4% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance beating analysts’ expectations.

Palo Alto Networks achieved the highest guidance raise, fastest revenue growth, and highest full-year guidance raise among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 8.7% since reporting and currently trades at $330.65.

Is now the time to buy Palo Alto Networks? Access our full analysis of the earnings results here, it’s free.

Best Q2: Qualys (NASDAQ: QLYS)

Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Qualys reported revenues of $182.2 million, up 11% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ billings and adjusted operating income estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.1% since reporting. It currently trades at $151.20.

Is now the time to buy Qualys? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: SentinelOne (NYSE: S)

Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.

SentinelOne reported revenues of $292 million, up 20.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.

SentinelOne delivered the weakest performance against analyst estimates of the whole group. The company added 13 enterprise customers paying more than $100,000 annually to reach a total of 1,715. As expected, the stock is down 12.8% since the results and currently trades at $19.80.

Read our full analysis of SentinelOne’s results here.

Zscaler (NASDAQ: ZS)

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Zscaler reported revenues of $898.2 million, up 24.9% year on year. This result surpassed analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

Zscaler delivered the biggest analyst estimate beat in the group. The stock is down 7.3% since reporting and currently trades at $164.74.

Read our full, actionable report on Zscaler here, it’s free.

Tenable (NASDAQ: TENB)

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Tenable reported revenues of $268.5 million, up 8.6% year on year. This number topped analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ annual recurring revenue estimates.

The stock is down 4.2% since reporting and currently trades at $30.15.

Read our full, actionable report on Tenable here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.