NET03 Surges 13% After Cloudflare Reports Better-Than-Expected Second-Quarter Earnings

SentinelOne has rolled out general availability of its Wayfinder Threat Hunting for Cloud service, extending coverage to AWS, Azure, and Google Cloud and tying the launch directly to its AI-led Singularity Platform. The stock last closed at US$25.80, with a 1-month share price return of 29.78% and a year-to-date share price return of 76.23%. The most followed narrative on SentinelOne pegs fair value at $24.25, leaving the stock modestly above that estimate and 6% overvalued, while the SWS DCF model points the other way, putting shares roughly 6.2% below an estimated future cash flow value of $27.49. Analysts behind the popular narrative use an 8.57% discount rate and assume revenue growth in the high teens with margins eventually moving toward US software averages, even as SentinelOne still reports a loss of $340.1 million on $1.10b of revenue. The company's new Flex licensing model is accelerating multi-product adoption, and expansion beyond endpoint security into cloud security, identity, and data protection, including the Prompt Security acquisition for GenAI risk, is expected to lift average contract value and diversify revenue streams.

CrowdStrike expanded its Google Cloud relationship on September 1, announcing Falcon capabilities designed to protect enterprise AI applications against prompt injection, sensitive-data leakage, and malicious AI activity through Google's Agent Gateway, alongside broader connections between Falcon and Gemini Enterprise. The move follows a fiscal second quarter in which revenue rose 26% year-over-year to approximately $1.47 billion, annual recurring revenue reached approximately $5.84 billion, up 25%, and net new ARR added during the quarter totaled $332.8 million. ARR from customers using Falcon Flex exceeded $2.29 billion, up 101% from a year earlier, while operating cash flow increased to $530.3 million from $332.8 million and free cash flow rose to $377.4 million from $283.6 million. Management raised its full-year fiscal 2027 net new ARR growth outlook to 34% at the midpoint. Jim Cramer highlighted CrowdStrike on Mad Money on October 1, noting the stock rallied 39% and that the Charitable Trust owns it, though the company still trades at roughly 210x forward earnings versus 96x for Palo Alto Networks and reported a $33.2 million GAAP operating loss against $371.6 million in non-GAAP operating income. Legal exposure from the July 2024 outage remains unresolved, with discovery ongoing in Delta's lawsuit and the company disclosing requests for information from the Justice Department and SEC concerning revenue recognition, ARR reporting for certain customers, and the outage.

Zscaler reaffirmed its first-quarter and full-year fiscal 2027 financial guidance and outlined a path to $8 billion to $10 billion in annual recurring revenue by fiscal 2031 during its annual Analyst/Investor Day event. In an SEC filing and accompanying press release, the cloud security platform maintained its first-quarter revenue forecast of $935 million to $939 million and non-GAAP earnings per share of $1.15 to $1.16, alongside full-year fiscal 2027 revenue between $3.908 billion and $3.938 billion. The company also reiterated its full-year annual recurring revenue guidance of $4.396 billion to $4.426 billion, representing 16.6% to 17.4% expansion. Chief Executive Officer Jay Chaudhry described agentic AI as the most significant opportunity in the company's history, noting that expanding beyond user security into branch, cloud, and AI agents widened Zscaler's addressable market to $220 billion, with data security annual recurring revenue already topping $400 million. Shares jumped 4.9% in the pre-market session before cooling to $209.76, up 3.9% from the previous close, as the S&P 500 and Nasdaq Composite touched all-time highs.

Tenable Holdings, Inc. announced the appointment of Charlie Bell to its Board of Directors. Bell, a technology executive with nearly four decades of software engineering and operational leadership experience, spent over two decades at Amazon Web Services, where he helped build its cloud infrastructure from inception into a global, multi-billion dollar business and served as a Senior Vice President. Most recently he served as Executive Vice President of Security, Compliance, Identity and Management at Microsoft, overseeing enterprise security strategy, product engineering and threat intelligence operations. Tenable Co-CEOs Mark Thurmond and Steve Vintz said Bell's engineering-first perspective and cloud-scale product architecture experience will reinforce the company's strategic direction as it advances its AI-powered exposure management platform. Bell said Tenable's massive data lake and advanced exposure intelligence position it uniquely to address the complexities of today's AI attack surface.