The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Zscaler (NASDAQ: ZS) and the rest of the cybersecurity stocks fared in Q2.

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.9% above.

Luckily, cybersecurity stocks have performed well with share prices up 14.9% on average since the latest earnings results.

Zscaler (NASDAQ: ZS)

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Zscaler reported revenues of $898.2 million, up 24.9% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance exceeding analysts’ expectations.

“AI represents one of the most significant opportunities in Zscaler's history. By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companies both combat the threats created by agentic AI and securely deploy AI agents and models,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Our continued innovation across Zero Trust SASE, Agentic SecOps, Data Security, and Security for AI is driving increased platform adoption and creating new avenues for growth, as reflected in our strong Q4 results. As AI becomes foundational to how organizations operate, we are well positioned to extend our leadership as the cybersecurity platform for the AI era.”

Zscaler pulled off the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 8.7% since reporting and currently trades at $193.25.

We think Zscaler is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q2: Qualys (NASDAQ: QLYS)

Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Qualys reported revenues of $182.2 million, up 11% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 14% since reporting. It currently trades at $183.58.

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

Weakest Q2: SentinelOne (NYSE: S)

Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.

SentinelOne reported revenues of $292 million, up 20.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.

SentinelOne delivered the weakest performance against analyst estimates among its peers. The company added 13 enterprise customers paying more than $100,000 annually to reach a total of 1,715. Interestingly, the stock is up 3.4% since the results and currently trades at $23.49.

Read our full analysis of SentinelOne’s results here.

Palo Alto Networks (NASDAQ: PANW)

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Palo Alto Networks reported revenues of $3.41 billion, up 34.4% year on year. This number beat analysts’ expectations by 1.7%. It was a strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance beating analysts’ expectations.

Palo Alto Networks delivered the highest guidance raise, fastest revenue growth, and highest full-year guidance raise in the group. The stock is up 3.6% since reporting and currently trades at $375.26.

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

Okta (NASDAQ: OKTA)

Named after the meteorological measurement for cloud cover, Okta (NASDAQ: OKTA) provides cloud-based identity management solutions that help organizations securely connect their employees, partners, and customers to the right applications and services.

Okta reported revenues of $805 million, up 10.6% year on year. This result topped analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ billings estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 41.8% since reporting and currently trades at $190.61.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.