Top US cyber security companies are expected to report another quarter of strong growth as high-profile hacks and a shift in client preference for bigger players with better integrated offerings help support their businesses in a turbulent economy.
Palo Alto Networks, the largest player in the space by market share and valuation, will kick off sector earnings with what analysts polled by Refinitiv estimate to be a near 24 percent increase in quarterly revenue.
That compares with growth of almost 26 percent in the prior quarter and 29 percent a year earlier, underscoring the resilience in demand for the services, seen as essential despite a wider tech spending slowdown.
“Cyber security has become more crucial than ever due to the rapid digital transformation taking place across industries,” said Akshara Bassi, an analyst at Counterpoint Research.
More frequent cases of security threats have also boosted demand.
In recent months, Western Digital and the US Transportation Department faced breaches that exposed the information of the memory chipmaker’s customers and 237,000 US government employees.
Worldwide spending on cyber security solutions is expected to…
