Latest news with #CortexXSIAM
Yahoo
2 days ago
- Business
- Yahoo
Zscaler's Agentic Ops Surge: Will It Be the Next Growth Driver?
Zscaler's ZS agentic operations are experiencing massive growth in information technology operations (ITOps) and Security Operations (SecOps). In the ITOps business, Zscaler rolled out ZDX Copilot as an integrated feature in the ZDX Advanced Plus package. In SecOps, Zscaler introduced agentic operations across multiple modules, including Risk360, Business Insights, Unified Vulnerability Management, Identity Threat Detection, and Cyber Asset Attack Surface Management. Since the introduction of ZDX Copilot, the company has experienced a 70% year-over-year rise in the bookings of the ZDX Advanced Plus package. As Zscaler's customers benefited from the lower mean time-to-resolution of service tickets, its ZDX Advanced Plus package grew to $75 million in bookings since the introduction of ZDX Copilot. Zscaler's SecOps business experienced 120% year-over-year growth in annual contract value since the integration of agentic operations in its security solutions. Driven by these factors, the New Growth Categories (NGC), which account for Zero Trust Everywhere, Data Security Everywhere and Agentic Operations, reached the milestone of approximately $1 billion in annual recurring revenues (ARR), while ZS' total ARR reached $2.9 billion in the third quarter fiscal 2025. The company in its third-quarter fiscal 2025 earnings reported that its NGC revenues were growing at a faster pace than its average ARR. Zscaler's Agentic Operations will help better compete with its rivals. Zscaler's competitors, including Palo Alto Networks PANW and CrowdStrike CRWD, have also expanded their expertise in Agentic Operations. Palo Alto Networks has deployed Cortex XSIAM for incident detection, investigation and response purposes. Palo Alto Networks' Cortex XSIAM continuously scans via telemetry across endpoints, network and cloud for providing accelerated threat response. CrowdStrike has introduced Falcon Next-Gen SIEM and Charlotte AI. While Charlotte AI functions as a generative AI security analyst, reducing the support time provided by cybersecurity professionals, CrowdStrike's Falcon Next-Gen SIEM provides a unified platform for detecting threats, investigating attacks and responding to them. Since the Agentic Operations market is still expanding, multiple players have enough room to grow in this space. This has been a boon to players like Zscaler who got the headstart in the emerging Agentic Operations market. Shares of Zscaler have gained 66.8% year to date compared with the Zacks Security industry's growth of 20.6%. Image Source: Zacks Investment Research From a valuation standpoint, Zscaler trades at a forward price-to-sales ratio of 15.16X, higher than the industry's average of 14.6X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Zscaler's fiscal 2025 earnings implies a year-over-year decline of 0.31% while the 2026 earnings estimate imply growth of 11.86%. The estimates for fiscal 2025 and 2026 have been revised upward in the past seven days. Image Source: Zacks Investment Research Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
21-05-2025
- Business
- Forbes
Palo Alto's Platform Strategy Is Working, But It Has A Cost
Palo Alto Networks made a big decision in early 2024 to move to a 'platformization" strategy of more aggressively bundling and discounting products in its portfolio to drive wider adoption. That strategy has largely worked, driving solid growth across the portfolio and larger deal sizes, but as today's earning results show, that's coming at a cost. Palo Alto has spent North of $3 billion in acquisitions over the past five years accumulating point products that it can tie into a broader platform. In early 2024 it announced a sales push into platform, which meant more bundling and discounting for adopting multiple products. The slide below show's how Palo Alto's feverish acquisition binge has outpaced rival Cisco's. Palo Alto has spent billions on at least 21 SASE and cybersecurity startups to build its portfolio, ... More outpacing rival Cisco. There's a catch, though. Platformization may just be a code word for discounting, as Palo Alto's 2025 fiscal Q3 results show. Despite progress in long-term initiatives to sell a more integrated platform as well as its successful Cortex XSIAM AI-driven security product, Palo Alto shares fell today on rising operating expenses and lower-than-expected margins announced last night. The higher cost of platform reared its head in the numbers: Operating expenses grew roughly 12% year-over-year. Product gross margin was 78.4% in the quarter, but total gross margin was 76%, short of analysts' estimates of 77.2%. The higher expenses are result of higher sales and marketing costs driven by the company's aggressive platform strategy. As a result, net income fell to $262.1 million, or 37 cents per share, from $278.8 million, or 39 cents per share, a year ago. Margins were the likely cause behind the stock's sharp drop today. Shares fell nearly 6% ($10.85) to $183 in early trading. The stock remains about 12% below its 52-week high of $208. Despite lower margins, the growth is still there. Palo Alto reported fiscal Q3 revenue of $2.29 billion, representing 15% year-over-year (yoy) growth and coming in at the high range of previous guidance. Product revenue grew 16%, total services revenue grew 15%, an subscriptions grew 18%. The company reported earnings per share (EPS) of 80 cents, adjusted vs. 77 cents expected. Palo Alto CEO Nikesh Arora of course focused on the positive. He talked about the strong growth in Cortex, larger deal sizes, as well as strength in the platform and subscription sales. The company also reported solid growth in annual recurring revenue (ARR). Software firewall ARR grew approximately 20% yoy, with public cloud deployments continuing to be the primary driver. Arora said the company recently crossed an important milestone of $5 billion in next-generation security ARR, up 34% year-over-year. Indeed, Palo continues seems to be doing all the right things in the product department. Its recently released as Cortex XSIAM 3.0 is the hottest product the company's portfolio and has driven up average deal size. "AI is accelerating cloud adoption, and we believe this trend will expand the long-term need for software firewalls that scaled modern workloads," said Arora on the corporate conference call. 'We believe we've reached an inflection point in our next-generation security story, as a growing majority of our incremental growth this year is derived from our AI-powered XSIAM, SASE, and software firewalls,' Cortex XSIAM combines proactive breach prevention with reactive incident response, driven by AI technology. By combining vulnerability management and email security, Palo is looking to keep pace with rivals such as CrowdStrike, which is one of the leaders in cloud-based threat intelligence using AI. Palo Alto's Cortex recently hit $1 billion in sales in the previous quarter, becoming the company's fastest product to reach that number. The company points to a total addressable market approaching $40 billion in categories spanning vulnerability management, email security, and security operations. Arora spent much of the call touting the success of Cortex along with several big customer wins. This includes a "leading global consulting firm" signing a transaction worth over $90 million in the quarter. "This customer platformized on Cortex for XSIAM, replacing a legacy incumbent SIEM provider," said Arora. Arora pointed to other deals, including "A leading financial services company" with a $46 million deal and a U.S. financial services firm for $33 million. Arora says the company now has approximately 270 customers in XSIAM, and the average ARR per customer is over $1 million. "XSIAM is not only our fastest-growing product ever, it is now more impactful to our overall growth rate," said Arora. 'I believe that from a strategic perspective, XSIAM has the potential of being the game changer for both the industry and Palo Alto Networks.' Like most industry research and analyst firms, Futuriom provides paid research and marketing services to technology companies. These services include subscription research, custom research, and report sponsorships. In the past twelve months, Futuriom has not had a paid relationship with Palo Alto Networks.
Techday NZ
30-04-2025
- Business
- Techday NZ
Palo Alto Networks unveils Cortex XSIAM 3.0 with AI upgrades
Palo Alto Networks has introduced Cortex XSIAM 3.0, which expands the capabilities of its security operations platform to include proactive exposure management and advanced email security. Cortex XSIAM 3.0 aims to move beyond traditional reactive security approaches, offering features such as AI-driven exposure prioritisation and automated remediation that claim to reduce vulnerability noise by up to 99%. The platform is designed to provide consolidated risk visibility across network, endpoint and cloud environments, with integration options for external third-party data sources. The update also brings enhancements in email security, including large language model (LLM)-powered threat detection, improved incident response workflows, and the ability to automate the removal of malicious emails and isolating of compromised endpoints. The company describes these additions as a response to the changing dynamics of the cybersecurity landscape, which increasingly demands both preventive measures and rapid incident handling within organisations. Palo Alto Networks stated that Cortex XSIAM has surpassed USD $1 billion in cumulative bookings in the second quarter of the 2025 financial year, making it the company's fastest product to reach this threshold. The platform, first launched three years ago, has been positioned by the company as a central tool for normalising and consolidating cybersecurity data to power analytics and automation without the need for multiple point solutions. The company recently expanded its cloud security capabilities through the launch of Cortex Cloud, integrating its Cloud Native Application Protection Platform (CNAPP) and Cloud Detection and Response (CDR) features onto the Cortex platform. According to Palo Alto Networks, new features in Cortex XSIAM 3.0 are targeted at addressing a total addressable market in security operations and email and vulnerability management valued at USD $37 billion. Gonen Fink, Senior Vice President of Products, Cortex at Palo Alto Networks, commented on the product release: "Cortex XSIAM harnesses the power of the world's largest and most comprehensive set of security data to transform our customers' ability to rapidly counter evolving attacks with advanced AI and automation. This expansion of our groundbreaking SecOps platform merges best-in-class reactive with proactive security measures, allowing customers to achieve unprecedented risk reduction across their entire enterprise, from code to cloud to SOC." The Cortex Exposure Management module is built to deliver a unified view of all exposures by collating data from network, endpoint and cloud scanners, as well as from third-party sources. AI algorithms are employed to prioritise vulnerabilities based on exploitation risk rather than solely on compliance requirements, aiming to eliminate false alarms and focus remediation on threats deemed most urgent. The platform's automation capabilities are intended to implement new security controls for critical risks across native and integrated security tools, with automated playbooks designed to orchestrate and execute response actions, reducing manual workload and aiming to prevent future incidents. The Advanced Email Security component is designed to strengthen defences against sophisticated phishing campaigns and other email-based threats, leveraging analytics that identify attacker intent and continuously adapt to emerging tactics. Automated response features include real-time removal of harmful messages, disabling of compromised accounts, and endpoint isolation within existing security workflows. The email module also correlates data across email, identity, endpoint, and cloud sources to provide a holistic view of incident paths for enhanced response measures. Chris DeBrunner, Vice President of Security Operations at CBTS, said: "The transition to Cortex XSIAM has transformed our SOC operations at CBTS. Previously, we struggled with alert fatigue due to multi-console complexity, multiple data sources, disparate vendors, and labour-intensive tasks. With the consolidation of major security capabilities into one platform, we have achieved remarkable efficiencies. Our incident close-out rate has reached 100%, and we have significantly reduced our median time to resolution (MTTR) from days to, in some cases, seconds. The automation provided by XSIAM has been crucial in managing the alert overwhelm we faced, making our team more effective and less error-prone." Chase Hymel, Chief Information Security Officer for the State of Louisiana, added: "Discovering the capabilities of Cortex XSIAM was a game-changer for the State of Louisiana. It's helped us to modernise our security infrastructure and set an example for other states to follow. By adopting XSIAM, we have significantly improved threat visibility and response effectiveness. Cortex XSIAM has allowed us to consolidate our security tools into one integrated platform, enhancing our security operations and protecting citizen data effectively. We have reduced MTTR from over 24 hours to under two minutes and automated the resolution of 86% of incidents." Cortex XSIAM 3.0's Exposure Management and Advanced Email Security offerings are scheduled for general availability to customers worldwide in the final quarter of the 2025 financial year.
Associated Press
28-04-2025
- Business
- Associated Press
Cribl and Palo Alto Networks Partner to Further Accelerate Adoption of AI-driven SecOps
SAN FRANCISCO, April 28, 2025 (GLOBE NEWSWIRE) -- Cribl, the Data Engine for IT and Security, today announced a strategic partnership with Palo Alto Networks to accelerate AI-driven SecOps and enable customers to upgrade even faster from legacy SIEM solutions to a modern, AI-driven platform. With this partnership, Cribl has a new integration with Cortex XSIAM, giving customers the choice and flexibility to further accelerate data onboarding, simplify proof of concept (POC) assessments, and make SOC transformation easier and more secure than ever. 'Teams in today's security landscape are overwhelmed by disconnected tools, alert fatigue, and inefficiencies that hamper their ability to efficiently detect and respond to sophisticated threats,' said Abby Strong, Chief Market Officer at Cribl. 'Bringing together the power of Cribl and Palo Alto Networks addresses this challenge head-on by combining AI-powered security operations with flexible data management. AI solutions require access to the most robust, comprehensive data that customers can control, enrich, and modify to ensure effective deployment. Cribl equips XSIAM's customers with the flexibility to access data across their security ecosystem, enabling them to transform their SOCs and stay ahead of evolving threats.' 'It's critical for companies to bring intelligence to their SOC in order to keep up with the rapidly evolving security landscape,' said Scott Burger, Lead Security Engineer at ServiceNow. 'Combining powerful AI capabilities with the data to fuel them is the best way to do this, and that's exactly what this partnership brings to our team. With total control over our security data, we can respond quicker, ensure compliance, and protect our organization.' Palo Alto Networks Cortex XSIAM transforms security operations by harnessing the power of AI and automation to stop threats at scale and accelerate incident response. By combining XSIAM's AI-driven insights with best-of-breed automation and unified data management, customers can now: 'As security environments become increasingly complex, data is essential for AI-powered security platforms to quickly detect and respond to threats at machine-speed,' said Pamela Cyr, VP of Technical Partnerships at Palo Alto Networks. 'Cortex XSIAM has already transformed the SOC for many organizations. We are excited to partner with Cribl, and this integration will help organizations to further accelerate their upgrade from traditional SIEM to a modern SOC.' 'Deloitte's security clients are navigating an unprecedented volume of data and increasingly sophisticated threats – challenges that legacy solutions can no longer address effectively,' said Kevin Urbanowicz, Managing Director and Security Operations leader at Deloitte & Touche LLP. 'Our team is at the forefront of driving strategic SOC transformation for our customers, helping them reimagine their operations with new technologies to secure the modern enterprise to meet the pace of today's threat landscape. By enriching Cortex XSIAM's AI-driven models with Cribl's broad, actionable data, we are able to provide an end-to-end solution that enables our customers to modernize their SOC and achieve their cybersecurity goals faster.' About Cribl Cribl, the Data Engine for IT and Security, empowers organizations to transform their data strategy. Customers use Cribl's vendor-agnostic solutions to analyze, collect, process, and route all IT and security data from any source or to any destination, delivering the choice, control, and flexibility required to adapt to their ever-changing needs. Cribl's product suite, which is used by Fortune 1000 companies globally, is purpose-built for IT and Security, including Cribl Stream, the industry's leading observability pipeline, Cribl Edge, an intelligent vendor-neutral agent, Cribl Search, the industry's first search-in-place solution, and Cribl Lake, a turnkey data lake. Founded in 2018, Cribl is a remote-first workforce with an office in San Francisco, CA. Media Contact Amy McDowell Offleash PR for Cribl [email protected]
