In Cyber Rally, Continue to Favor the Platforms

Research evidence excerpt

In Cyber Rally, Continue to Favor the Platforms

Idea

July 15, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMSoftware | North America Meta A Marshall

Equity Analyst

In Cyber Rally, Continue to Meta.Marshall@morganstanley.comJonathan Eisenson +1 212 761-0430

Research Associate

Jonathan.Eisenson@morganstanley.com +1 212 761-2808

Favor the Platforms Ryan Lountzis

Ryan.Lountzis@morganstanley.com +1 212 761-3189

Cyber has moved ~30% YTD, almost all in the last month, as Lucas Cerisola

momentum trade digests and risk environment grows. Continue ResearchLucas.Cerisola@morganstanley.comAssociate +1 212 761-9194

to favor platforms, as even though up ~80% YTD, view names as Abhishek S Murli

in the best position to capture outsized share of increased ResearchAbhishek.S.Murli@morganstanley.comAssociate +1 212 761-7388

dollars coming into cyber.

Software

North America

Key Takeaways Industry View Attractive

Median cyber name up ~28% YTD, with ~25% move in the last month as

momentum trade has digested and volume of news on risk environment grows.

IBM earnings yesterday, noting "clients distracted with rapidly-evolving, industry-

wide cybersecurity concerns" driving space up 7% alone.

Continue to see platforms (PANW, CRWD) as best way to play the theme as

likely to accrue most incremental dollars, even after ~80% move YTD.

See network security names as most likely to see upside in NT given technical

debt replacement, followed by SOC investments and then identity, data

investments.

All roads lead to cyber as enterprises prepare for AI. Combination of 1) AI

momentum trade seeing some digestion, 2) threat environment continuing to be

elevated with concerns around frontier model security risks, 3) tech executives

talking about importance of securing / value of proprietary data, 4) pre-