Cybersecurity firms’ earnings set to benefit from growing threat of hacks

Top U.S. cybersecurity 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 on Tuesday with what analysts polled by Refinitiv estimate to be a near 24% increase in quarterly revenue.

That compares with growth of almost 26% in the prior quarter and 29% a year earlier, underscoring the resilience in demand for the services, seen as essential despite a wider tech spending slowdown.