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Q1 Earnings Highlights: Okta (NASDAQ:OKTA) Vs The Rest Of The Cybersecurity Stocks

By: StockStory

June 05, 2025 at 23:32 PM EDT

OKTA Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at cybersecurity stocks, starting with Okta (NASDAQ: OKTA).

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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Okta (NASDAQ: OKTA)

Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ: OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.

Okta reported revenues of $688 million, up 11.5% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations.

“Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.

The stock is down 17.6% since reporting and currently trades at $103.50.

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

Best Q1: Zscaler (NASDAQ: ZS)

After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ: ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.

Zscaler reported revenues of $678 million, up 22.6% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ annual recurring revenue estimates.

Zscaler pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 19.4% since reporting. It currently trades at $299.55.

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

Weakest Q1: SentinelOne (NYSE: S)

With roots in the Israeli cyber intelligence community, SentinelOne (NYSE: S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.

SentinelOne reported revenues of $229 million, up 22.9% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

As expected, the stock is down 8% since the results and currently trades at $18.10.

Read our full analysis of SentinelOne’s results here.

Varonis (NASDAQ: VRNS)

Founded by a duo of former Israeli Defense Forces cyber warfare engineers, Varonis (NASDAQ: VRNS) offers software-as-service that helps customers protect data from cyber threats and gain visibility into how enterprise data is being used.

Varonis reported revenues of $136.4 million, up 19.6% year on year. This number topped analysts’ expectations by 2.3%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

The stock is up 13.3% since reporting and currently trades at $50.14.

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

Palo Alto Networks (NASDAQ: PANW)

Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ: PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats.

Palo Alto Networks reported revenues of $2.29 billion, up 15.3% year on year. This print beat analysts’ expectations by 0.5%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates.

The stock is up 1.1% since reporting and currently trades at $196.75.

Read our full, actionable report on Palo Alto Networks here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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