Two Overlooked Sectors Driving CrowdStrike's Upcoming Growth Surge and Stock Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy CYBR?
Source: CNBC
CrowdStrike's Market Performance: CrowdStrike has seen a significant rise in its stock, up over 45% in 2025, as it leads in cybersecurity by expanding AI-powered solutions. Analysts predict further growth, with a majority rating the stock as a buy and price targets suggesting potential increases of 40% to 50% in the next 12 to 18 months.
AI and Cybersecurity Demand: CEO George Kurtz highlights the "agentic revolution" in AI as a major opportunity for CrowdStrike, estimating that companies will need extensive protection for AI agents, which could create a vast new market for cybersecurity solutions.
Palo Alto Networks' Challenges: Despite strong earnings, Palo Alto Networks' stock has struggled, facing investor skepticism over its acquisition strategies. Analysts maintain a buy rating, citing the company's potential in the cybersecurity sector, particularly with its planned acquisitions.
Future of Cybersecurity: Analysts believe that the cybersecurity sector will experience robust growth driven by AI demand, with both CrowdStrike and Palo Alto Networks positioned as key players in this evolving landscape.
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Analyst Views on CYBR
Wall Street analysts forecast CYBR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CYBR is 495.60 USD with a low forecast of 448.00 USD and a high forecast of 524.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
3 Buy
10 Hold
0 Sell
Hold
Current: 381.720
Low
448.00
Averages
495.60
High
524.00
Current: 381.720
Low
448.00
Averages
495.60
High
524.00
About CYBR
CyberArk Software Ltd is an Israel-based provider of information technology (IT) security solutions that protect organizations from cyber-attacks. The Company's software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company's Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company's products protect against external and internal cyber threats and enable detection and neutralization of attacks. The Company's Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual, or cloud-based assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DA Davidson Optimistic on CyberArk Software After Strong Quarter
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- Strong ARR Momentum: The analyst highlighted that CyberArk's annual recurring revenue (ARR) rose 23% year-over-year to $1.44 billion, with subscription ARR growing approximately 29% organically, indicating strong market demand and customer retention.
- Operating Margins Slightly Below Expectations: Although operating margins came in slightly lower than anticipated due to rising costs, the free cash flow exceeded forecasts, reflecting the company's solid financial management and bolstering investor confidence.
- Acquisition Outlook Affects Guidance: With the pending acquisition by Palo Alto Networks, CyberArk will not hold an earnings call or provide updated guidance; however, the analyst maintains a bullish outlook, projecting next quarter's revenue at $378.6 million and EPS at $1.35.
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- Market Reaction: Despite the notable revenue increase, investor sell-off was triggered by concerns over the company's future prospects, reflecting doubts about its profitability and competitive position in the market.
- Subsequent Impact: The post-earnings sell-off may undermine market confidence in CyberArk, potentially affecting its future financing and expansion plans negatively.
- Strategic Challenges: In the context of intensifying competition in the identity management market, CyberArk needs to reassess its strategy to address investor skepticism regarding its long-term growth potential.
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- Significant Revenue Growth: The total revenue for Q4 reached $372.7 million, an 18.5% year-over-year increase, exceeding expectations by $9.76 million, which suggests the company is strengthening its competitive position in the market and may attract more customers and investments.
- Strong Subscription Revenue: Subscription revenue for Q4 was $310.5 million, up 28% from $243.0 million in Q4 2024, demonstrating the company's success in its recurring revenue model and further solidifying its market position.
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- Strategic Partnership: Quantum Secure Encryption Corp has joined the Canadian Association of Defence and Security Industries (CADSI), enabling access to senior decision-makers within the Canadian Armed Forces and international defense partners, fostering policy dialogue and enhancing its influence in national security.
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- Market Potential: The global Zero Trust security market is projected to reach $190.27 billion by 2035, as organizations rapidly shift to systems that verify every identity in response to tightening data control regulations across over 100 countries, thereby driving demand for quantum security encryption technologies.
- Strengthened Industry Collaboration: Quantum Secure Encryption Corp. (QSE) has joined the Canadian Association of Defence and Security Industries (CADSI), providing access to senior decision-makers in the Canadian Armed Forces and international defense partners, aiming to promote the deployment of post-quantum controls and enhance its influence in the defense security sector.
- Technology Readiness: QSE's technology platform is market-ready and certified, holding Level 2 Certification under the CyberSecure Canada program, ensuring it can meet the growing security demands during its global expansion, particularly in key markets like Indonesia.
- Strong Financing Support: QSE recently secured C$2.8 million in financing, ensuring ample funding for its global expansion roadmap throughout 2026, with expectations to convert public sector engagements into sustainable revenue streams.
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- Subscription Growth Drives Results: CyberArk Software reported revenue of $372.7 million and adjusted EPS of $1.33 in its latest quarterly report, slightly below expectations, yet supported by a robust 28% growth in subscription revenue, which constituted 83% of total revenue.
- Strong ARR Momentum: The analyst highlighted that CyberArk's annual recurring revenue (ARR) rose 23% year-over-year to $1.44 billion, with subscription ARR growing approximately 29% organically, indicating strong market demand and customer retention.
- Operating Margins Slightly Below Expectations: Although operating margins came in slightly lower than anticipated due to rising costs, the free cash flow exceeded forecasts, reflecting the company's solid financial management and bolstering investor confidence.
- Acquisition Outlook Affects Guidance: With the pending acquisition by Palo Alto Networks, CyberArk will not hold an earnings call or provide updated guidance; however, the analyst maintains a bullish outlook, projecting next quarter's revenue at $378.6 million and EPS at $1.35.
See More
CyberArk Stock Plummets Despite $1.44 Billion Revenue Milestone
- Revenue Milestone: CyberArk achieved a significant revenue milestone of $1.44 billion, indicating robust growth in the identity management sector; however, this accomplishment did not prevent a sharp decline in stock price.
- Market Reaction: Despite the notable revenue increase, investor sell-off was triggered by concerns over the company's future prospects, reflecting doubts about its profitability and competitive position in the market.
- Subsequent Impact: The post-earnings sell-off may undermine market confidence in CyberArk, potentially affecting its future financing and expansion plans negatively.
- Strategic Challenges: In the context of intensifying competition in the identity management market, CyberArk needs to reassess its strategy to address investor skepticism regarding its long-term growth potential.
See More
CyberArk Q4 Earnings Exceed Expectations
- Earnings Beat: CyberArk reported a Q4 non-GAAP EPS of $1.33, surpassing expectations by $0.18, indicating strong profitability growth that could enhance investor confidence and drive stock price appreciation.
- Significant Revenue Growth: The total revenue for Q4 reached $372.7 million, an 18.5% year-over-year increase, exceeding expectations by $9.76 million, which suggests the company is strengthening its competitive position in the market and may attract more customers and investments.
- Strong Subscription Revenue: Subscription revenue for Q4 was $310.5 million, up 28% from $243.0 million in Q4 2024, demonstrating the company's success in its recurring revenue model and further solidifying its market position.
- Annual Recurring Revenue Increase: As of December 31, 2025, CyberArk's Annual Recurring Revenue (ARR) reached $1.440 billion, a 23% increase, with the subscription portion accounting for 88%, indicating a positive outlook for long-term revenue stability.
See More
Quantum Secure Encryption Corp Joins CADSI to Enhance Defense Position
- Market Potential: The global Zero Trust security market is projected to reach $190.27 billion by 2035, as organizations rapidly shift to systems that verify every identity in response to tightening data control regulations across over 100 countries, thereby driving demand for quantum security solutions.
- Strategic Partnership: Quantum Secure Encryption Corp has joined the Canadian Association of Defence and Security Industries (CADSI), enabling access to senior decision-makers within the Canadian Armed Forces and international defense partners, fostering policy dialogue and enhancing its influence in national security.
- Technology Readiness: QSE's technology platform is market-ready and holds Level 2 Certification under the CyberSecure Canada program, ensuring robust compliance and security as it executes its global expansion roadmap throughout 2026.
- Funding Support: The company recently secured C$2.8 million in financing, ensuring sufficient operational funds to accelerate market promotion and technology deployment over the next year, further solidifying its competitive position in the post-quantum cryptography market.
See More
Quantum Secure Encryption Corp Joins CADSI to Enhance Security Position
- Market Potential: The global Zero Trust security market is projected to reach $190.27 billion by 2035, as organizations rapidly shift to systems that verify every identity in response to tightening data control regulations across over 100 countries, thereby driving demand for quantum security encryption technologies.
- Strengthened Industry Collaboration: Quantum Secure Encryption Corp. (QSE) has joined the Canadian Association of Defence and Security Industries (CADSI), providing access to senior decision-makers in the Canadian Armed Forces and international defense partners, aiming to promote the deployment of post-quantum controls and enhance its influence in the defense security sector.
- Technology Readiness: QSE's technology platform is market-ready and certified, holding Level 2 Certification under the CyberSecure Canada program, ensuring it can meet the growing security demands during its global expansion, particularly in key markets like Indonesia.
- Strong Financing Support: QSE recently secured C$2.8 million in financing, ensuring ample funding for its global expansion roadmap throughout 2026, with expectations to convert public sector engagements into sustainable revenue streams.
See More
The Emergence of AI Agents Poses an Unforeseen Risk
AI Agents Expected in 2026: Artificial-intelligence companies anticipate that 2026 will mark the introduction of AI agents capable of autonomously performing complex tasks based on simple instructions.
Security Concerns: The emergence of this new technology raises significant security vulnerabilities, creating opportunities for cybersecurity firms to address these challenges.
See More
