Latest news with #enterpriseadoption
Globe and Mail
6 days ago
- Business
- Globe and Mail
Steady Transition to Windows 11 Aids MSFT: What's the Path Forward?
Microsoft MSFT continues to dominate the desktop operating system market through Windows. The ongoing transition to Windows 11 from Windows 10 has been a major driver, boosting enterprise adoption. This, along with pent-up demand from an aging installed base, helped drive up global PC shipments in the second quarter of 2025. which rose 6.5% year over year to 68.4 million shipments, per IDC's latest data. PC vendors rushed to push high shipment volumes into the United States ahead of potentially higher tariffs. Lenovo led the PC shipment market with 24.8% share, followed by HP and Dell Technologies with 20.7% and 14.3% share, respectively. All three companies offer devices powered by Windows. As enterprises prepare for the end-of-support for Windows 10 in 2025, Windows 11 commercial deployments have witnessed a 75% year-over-year surge in the third quarter of fiscal 2025, showing strong enterprise-led PC upgrades. Microsoft has rolled out Copilot+ PCs, its latest AI-optimized Windows devices, which come bundled with exclusive features like Recall, Click to Do and a revamped Windows search, providing a more sophisticated device experience. The company has collaborated with Adobe, Canva and Zoom to integrate AI applications that improve user engagement. For the fourth quarter of fiscal 2025, Microsoft expects revenues from its More Personal Computing segment to range between $12.35 billion and $12.85 billion. Our model estimate for MSFT's fourth-quarter 2025 More Personal Computing revenues is $12 billion, indicating year-over-year growth of 1%. MSFT Faces Stiff Competition Microsoft faces tough competition from Alphabet 's GOOGL and Apple 's AAPL robust operating systems. Alphabet's ChromeOS has evolved into a secure, AI-focused operating system, with the flagship Chromebook Plus offering a 12-month AI pro plan, built-in Gemini, and features like Select to Search, Text Capture and the Quick insert key. The company recently launched Lenovo Chromebook Plus 14, powered by Alphabet's on-device machine learning capabilities with features like smart grouping, AI image editing and generative wallpapers, further reinforcing ChromeOS as a sophisticated operating system in today's dynamic tech landscape. Apple has been gaining share in the PC market, thanks to strong demand for the latest Mac devices powered by the M4 family of chips — M4, M4 Pro and M4 Max. The iPhone-maker launched MacBook Pro that featured these latest chips on Oct. 30, 2024, and MacBook Air on March 5, 2025. The company also recently announced macOS Tahoe 26. Apple is now expected to launch M5 chip-powered MacBooks this fall, which is likely to further drive Mac shipment volume. MSFT's Share Price Performance, Valuation and Estimates MSFT shares have appreciated 21.3% in the year-to-date period, outperforming the Zacks Computer – Software industry and the Zacks Computer and Technology sector's growth of 19.6% and 9.6%, respectively. MSFT's YTD Price Performance From a valuation standpoint, MSFT stock is currently trading at a forward 12-month Price/Sales ratio of 12.04X compared with the industry's 8.97X. MSFT has a Value Score of D. MSFT Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for MSFT's fiscal 2025 earnings is pegged at $13.34 per share, up by a cent over the past 30 days. The estimate indicates 13.05% year-over-year growth. Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
Globe and Mail
23-06-2025
- Business
- Globe and Mail
Okta's Security Portfolio Expands Clientele: A Sign of More Upside?
Okta OKTA is benefiting from its innovative portfolio that is driving clientele. In the first quarter of fiscal 2026, it reported strong momentum among large-cap customers, including Global 2000 companies and government agencies. These large organizations are shaping Okta's product roadmap, pushing the company to deliver advanced identity solutions across workforce, customer and AI-driven use cases. Okta's more than $1 million annual contract value (ACV) customer base grew 20% year over year, a strong sign of enterprise adoption. Companies from critical sectors like energy, telecom and insurance are turning to Okta not only for employee identity security but also for securing APIs and machine-to-machine interactions. In response, the company has introduced solutions such as Identity Governance (OIG), Identity Threat Protection (ITP) and Privileged Access (OPA) to meet the complex demands of these clients. Public sector momentum further underscores this enterprise-led growth. In the first quarter of fiscal 2026, four of Okta's top 10 deals came from U.S. government entities. These clients are leveraging the company's FedRAMP-compliant cloud solutions for secure authentication, lifecycle management and automated workflows. Meanwhile, Okta's Customer Identity Cloud (Auth0) is gaining ground in large-scale deployments. A Global 2000 energy company implemented Auth0 across all customer-facing apps, while a major tech reseller switched from Microsoft to Auth0 to boost scalability and developer experience. These moves highlight trust in Okta's ability to deliver secure, seamless and scalable identity experiences for millions of users. CyberArk & SailPoint: OKTA's Identity Rivals to Watch CyberArk Software CYBR, a leader in privileged access management, is frequently compared to Okta for its robust identity security and strong margins. CyberArk's advantage is its comprehensive identity security platform, which has now been further enhanced through acquisitions such as Venafy and Zilla Security. By managing both human and machine identities, the company keeps pace with the growing demand. Its growing customer base helps CyberArk grow revenues through strategic upselling of its integrated security solutions. SailPoint SAIL has established itself as a leader in Identity Governance & Administration, posing direct competition to Okta. SailPoint's strong Identity Security Cloud, supported by an extensive partner ecosystem, delivers seamless integration across hybrid environments. With low-code/no-code workflows and AI-driven access recommendations, SailPoint stands out for managing complex enterprise identities with precision and scalability. OKTA's Price Performance, Valuation & Estimates Shares of Okta have appreciated 26.1% year to date compared with the Zacks Security industry's return of 20.2%. Okta currently trades at a premium with a forward price/cash flow ratio of 23.41, higher than the broader Zacks Computer & Technology sector's 20.12X. OKTA has a Value Score of D. The Zacks Consensus Estimate for OKTA's 2026 revenues is pegged at $2.86 billion, indicating 9.44% year-over-year growth. The consensus mark for earnings is pegged at $3.28 per share, which increased 2.8% over the past 30 days. The earnings figure suggests 16.73% growth over the figure reported in fiscal 2025. OKTA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report SailPoint, Inc. (SAIL): Free Stock Analysis Report
