1 Q4 2025 Earnings Feb 25th , 2026 Allot Q4-25 Earning EYAL HARARI Chief Executive Officer LIAT NAHUM Chief Financial Officer 2 Forward Looking Statements This presentation contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements set forth in su ...

Thank you. Hello and welcome to the Morning Filter podcast. I'm Susan Jabinsky with Morning Star.Every Monday before market open, I sit down with Morning Star chief US market strategist Dave Sakara to talk about what investors should have on their radars for the week, some new Morning Star research, and a few stock ideas. All right. Well, grab your coffee because Dave and I have a lot of ground to cover this morning.Now, last Friday's Supreme Court ruling struck down some of the Trump administration's tarif ...

Core Viewpoint - Cybersecurity stocks are experiencing downward pressure following Palo Alto Networks' earnings report, with analysts expressing concerns over guidance despite strong quarterly numbers [1][4][11]. Financial Performance - Palo Alto Networks reported earnings of $1.03 per share, exceeding expectations of $0.94, and revenue of $2.59 billion, slightly above the anticipated $2.58 billion [4]. - Guidance for the fiscal third quarter is projected at $0.78 to $0.80 per share, falling short of the $0.92 estimate, while revenue is expected to be between $2.94 billion and $2.95 billion, surpassing the $2.6 billion estimate [5]. Analyst Reactions - Analysts have lowered price targets for Palo Alto Networks, with Morgan Stanley adjusting theirs to $223 from a higher figure, while maintaining an overweight rating [6]. - Baird reduced their target from $240 to $220, and Bernstein made a minor adjustment from $210 to $209, both retaining positive ratings [7][8]. - Overall, despite the price target reductions, analysts remain bullish on the company's long-term prospects, particularly due to its focus on higher growth recurring revenue [9][10]. Market Sentiment - The cybersecurity sector is under pressure from broader market concerns, including fears related to AI disruptions, which are affecting stock performance [2][11]. - There is a noted increase in retail buying of tech stocks, contrasted with institutional shorting, indicating a mixed market sentiment [18]. Strategic Insights - A stock strategist suggests that there may be value in Palo Alto Networks for both short-term and long-term investors, particularly at current price levels [12][14]. - The overall earnings report is viewed as slightly bullish, with revenue exceeding expectations, although concerns remain regarding organic growth in the second half of the year [15].

Core Insights - Sealing Technologies (SealingTech), a subsidiary of Parsons Corporation, has received an Intent to Award notification from the United States Cyber Command for a sole-source contract to produce the Joint Cyber Hunt Kit solution, with a potential value of up to $500 million over three years [1][2]. Group 1: Company Developments - The contract marks a significant step in SealingTech's collaboration with the Department of War's Defense Innovation Unit and USCYBERCOM, focusing on advanced defensive cyber technologies [2]. - Parsons acquired SealingTech in 2023 to enhance its cyber operations capabilities for the Defense and Intelligence sectors, aiming to solidify its leadership in national security [2][3]. - SealingTech has a decade-long history of supporting the U.S. Department of War, having deployed over 500 Cyber Fly-Away Kits for critical national security missions [3]. Group 2: Strategic Vision - Parsons emphasizes its commitment to providing mission-ready solutions that ensure the U.S. military's operational superiority [3]. - The collaboration with DIU and USCYBERCOM aims to advance next-generation defensive cyber capabilities, enhancing the tactical advantage of warfighters [4]. - Parsons integrates various cyber capabilities, including offensive and defensive operations, to deliver transformative solutions that support multi-domain operations [4].

Southwest Airlines - Southwest Airlines shares increased by over 3.5% following a bullish upgrade from UBS, which raised its price target to $73, indicating a potential upside of about 40% from previous closing levels [2][3] - UBS estimates that the new seating model and potential bag fees could significantly enhance earnings, projecting an increase of approximately $2.70 per share by 2027 [3] - The firm anticipates that earnings could rise from under $1 in 2025 to above $6 by 2027 due to the introduction of bag fees, suggesting substantial growth potential for the airline [4] Dollar Tree and Dollar General - Dollar Tree received an upgrade to a buy from Redburn, with its price target more than doubled to $165, reflecting strong confidence in its post-restructuring growth [6][7] - Analysts forecast approximately 12% earnings growth for Dollar Tree, indicating it is at a strategic inflection point, while Dollar General was downgraded to a sell with a price target of $111, suggesting a less favorable outlook [8][10] - Despite Dollar General's recent strong performance, analysts believe its current valuation is not justified given its lower sales outlook and margin structure compared to historical growth [9][10] Palo Alto Networks - Palo Alto Networks is expected to report earnings of 93 cents on an adjusted basis, with revenue anticipated to exceed $2.58 billion [12] - Muho has lowered its price target for Palo Alto to $205 from $220 while maintaining an outperform rating, reflecting a cautious outlook amid broader market challenges affecting the software sector [13] - Analysts remain optimistic about Palo Alto's potential for strong earnings despite the recent market pressures on cybersecurity stocks [14]

Core Insights - Check Point Software Technologies has been recognized as a Leader and Fast Mover in the GigaOm Radar for Cloud Network Security 2025, marking its third consecutive year in the top position [1][3] - The company is noted for its prevention-first architecture, unified cloud security platform, and consistent pace of innovation, supported by its Open Garden strategy for native integrations across cloud environments [1][3] Group 1: Innovation and Architecture - Check Point maintains a strong pace of innovation, leveraging its core networking strengths to build a unified platform that adapts to modern organizational needs [2] - The GigaOm ranking highlights Check Point's ability to deliver high-efficacy protection while simplifying security for enterprises operating in hybrid and multicloud environments [3] Group 2: Key Strengths and Customer Impact - Key strengths recognized by GigaOm include Check Point's unified Infinity architecture, strong prevention capabilities, and operational simplicity [3] - The recognition reinforces Check Point's commitment to providing strong cloud security with unified visibility and a seamless customer experience, ultimately enhancing digital trust and reducing complexity for customers [3] Group 3: Ecosystem and Integration - Check Point's Open Garden strategy continues to expand choice and interoperability across the cloud ecosystem, allowing organizations to integrate best-of-breed tools without compromising security efficacy [3] - The company utilizes AI-powered solutions to protect over 100,000 organizations globally, emphasizing its industry-leading security efficacy while reducing risk [5]

Welcome back. Good to Morning Movers. I'm Dan King Hall coming to you live from the floor of the New York Stock Exchange.Joining us now is Jack Janis portfolio manager and the Texas Investment Managers to kick off our conversation about the AI trade and the evolution of it. For the past few years, Jack, good to see you. First of all, you could just essentially buy the AI trade and kind of sit back and, you know, watch your portfolio win.That era seems to be facing quite some speed bumps this year. the mag s ...

Cryptocurrency Market - Bitcoin has experienced its fourth consecutive weekly loss, down more than 20% year-to-date and nearly 50% from its October 2025 peak of $126,000, resulting in over half a trillion dollars wiped out across the crypto markets this month [1][2] Precious Metals - Gold rebounded above $5,000 per ounce after dipping below that level, while silver also recovered some ground following a steep selloff, managing to close the week with a gain [2][3] Technology Sector - The technology sector, particularly software stocks, showed signs of recovery after a significant selloff, with the IGV index rallying over 2% [4] - Analysts have expressed concerns about the overblown nature of the tech selloff, particularly regarding AI implementation strategies and the associated risks [5][6] Upcoming Earnings Reports - Palo Alto Networks is expected to report strong earnings, with estimates of $0.93 EPS on approximately $2.58 billion in sales, supported by robust demand for AI security solutions [9][10] - Walmart is also set to report earnings, with analysts expecting about $0.73 EPS on roughly $188.4 billion in revenue, which would indicate a modest year-over-year increase [8][10] Economic Data and Market Outlook - A shortened trading week is anticipated, with limited top-tier economic data releases, including updates on the housing market and import prices, as well as the FOMC minutes [12][14] - Market participants are closely watching for potential Supreme Court decisions on tariffs and the implications of the Chinese New Year on trading volumes [13][14]

Core Insights - Anthropic's release of 11 new plug-ins for its Claude Cowork AI tool has triggered a significant sell-off in SaaS stocks, resulting in a loss of nearly $1 trillion in market value over six days [2] - Concerns regarding AI disruption have led to sharp declines in shares of companies like Salesforce and Workday, although the panic has since subsided, with industry leaders suggesting that many companies will adapt successfully [3] - JPMorgan has identified CrowdStrike, Palo Alto Networks, and Zscaler as long-term winners in the face of AI-driven cyber threats [8] Company-Specific Insights - CrowdStrike's AI-native Falcon platform is recognized for its resilience against broader software sector fears, with JPMorgan maintaining an Overweight rating on the stock [4] - In fiscal 2026 Q3, CrowdStrike reported $1.35 billion in annual recurring revenue from its Falcon Flex offering, indicating strong customer adoption and high-priority enterprise spending in security operations [5] - Analysts project CrowdStrike's fiscal 2026 revenues to be between $4.797 billion and $4.807 billion, with non-GAAP earnings expected to be $3.70 to $3.72 per share, reflecting a 1.1% increase in earnings estimates over 60 days [6] - CrowdStrike is expected to benefit from AI-enabled efficiencies, high switching costs, and multi-year contracts, with analysts forecasting a 16.8% earnings expansion in 2026 [7] - Palo Alto Networks reported a 16% revenue growth to $2.47 billion in fiscal Q1, with operating margins exceeding 30% for two consecutive quarters [8] - Zscaler's emerging products have surpassed $1 billion in combined annual recurring revenue [8]

Core Viewpoint - Cloudflare's strong earnings report has led to a significant increase in its stock price, while other cybersecurity stocks are experiencing mixed reactions [1][4]. Company Performance - Cloudflare's earnings for the fourth quarter were reported at 28 cents per share, a 47% increase year-over-year, with revenue climbing 34% to $614.5 million [4]. - The company provided optimistic guidance for the upcoming quarter, projecting revenue between $620 million and $621 million, surpassing analyst estimates of $614 million [4]. - Despite a slight miss in EPS by 2 cents, the overall fiscal year 2026 outlook was positive, with projected earnings of approximately $111 per share on revenue of $2.79 billion, exceeding analyst expectations of $2.731 billion [5]. Market Reaction - Following the earnings report, Cloudflare's stock rose by 10.6%, while other cybersecurity stocks like CrowdStrike, Palo Alto, and Zscaler saw declines [1][3]. - Analysts have responded positively, with TD Cowan upgrading Cloudflare to outperform and setting a new price target of $260, while BTI raised its target to $243 and Jeffre to $225 from $185 [7][8]. Industry Trends - The report highlighted that AI has become a significant growth driver for Cloudflare, with over 4.5 million developers active on its platform and a doubling of weekly requests generated by AI agents in January [6]. - The overall sentiment in the software sector appears mixed, with many companies experiencing declines despite Cloudflare's strong performance [13].