3 Cybersecurity Stocks Gaining Attention After SharePoint Server Issue

Last week, several Microsoft SharePoint administrators discovered their on-premises servers were behaving abnormally—installing unauthorized web shells instead of processing uploads. The breach required no login credentials. A single forged packet was enough to bypass system protections and allow attackers full control of affected servers.

The incident, identified by Dutch security firm Eye Security, revealed a chain of vulnerabilities now known as the ToolShell exploit. It impacted servers that were believed to be secure, raising concerns among IT teams across the corporate sector.

Microsoft SharePoint is used by thousands of organizations worldwide for file management and collaboration. This exploit showed how exposed core systems remain despite layers of traditional security.

Following this incident, cybersecurity stocks saw renewed activity, particularly those positioned around identity protection, endpoint security, and Zero Trust models. Below are three companies that saw price movement and strong analyst sentiment in the days after the breach.

CyberArk Software (CYBR): Protecting the Credentials Hackers Target First

CyberArk specializes in privileged access management—securing the accounts attackers typically aim for first. The company’s software is used by over half of the Fortune 500 and about 35% of the Global 2000, helping them control access to sensitive systems and data.

Its products include:

• Privileged Access Manager

• Privilege Cloud

• Endpoint Privilege Manager

• Secure Cloud Access

All these tools are now integrated under an identity security platform that also includes support for machine identities and AI-based security agents.

Financial Performance

• Quarterly Revenue: $318 million (up 43% year-over-year)

• Subscription Revenue: Up 60%

• Annual Recurring Revenue (ARR): $1.215 billion

• Subscription Share of ARR: 85%

• Projected 2025 Revenue: ~$1.3 billion, indicating 31.5% growth

Analyst Targets

• Average Target Price: $449

• Highest Target: $500

With a growing number of corporate clients shifting to identity-first security models, CyberArk continues to build on its long-term subscription revenue base and product integration.

Broadcom (AVGO): Combining Infrastructure and Security at Scale

Broadcom may be better known for its semiconductors, but its cybersecurity business—centered around the former Symantec enterprise division—has become a central part of its growth strategy. Its security platform is widely used in virtual environments, especially by enterprises running VMware systems.

The company’s infrastructure software unit, which includes security, is now one of its strongest-performing segments.

Financial Performance

• Q1 Infrastructure Software Revenue: $6.7 billion (up 47%)

• Q2 Growth: 25% year-over-year

• Q3 Revenue Forecast: $15.8 billion

• Quarterly Free Cash Flow: More than $6.4 billion

• Capital Returned to Shareholders (Last Quarter): $7 billion

Analyst Sentiment

• Out of 36 Analysts:

  • 32: “Strong Buy”

  • 1: “Moderate Buy”

  • 3: “Hold”

• Average Target: $298.55

• High Target: $400

Broadcom's integration of AI-powered security tools into its broader infrastructure software is attracting interest from institutional buyers, especially as demand rises for security solutions built directly into data center systems.

Zscaler (ZS): Enforcing Zero Trust Across the Cloud

Zscaler routes all corporate traffic through a cloud security checkpoint before it reaches external networks or internal systems. This prevents unauthorized access, even if a device on the network is compromised.

Unlike traditional firewalls or VPNs, Zscaler’s model treats every connection as untrusted until verified. This approach, known as Zero Trust, is becoming the standard for businesses shifting to cloud environments and remote teams.

Financial Highlights (Fiscal Q3)

• Revenue: $678 million (up 23%)

• Calculated Billings: $785 million (up 25%)

• Deferred Revenue: Nearly $2 billion (up 26%)

• Earnings per Share: $0.84 (12% above estimates)

• Cash and Short-Term Investments: Over $3 billion

Price Targets

• Average Analyst Target: $310.33

• Highest Estimate: $385

Zscaler continues to grow its contract base and recurring revenue as more large companies look to replace legacy security with flexible, scalable cloud protection.

Microsoft SharePoint Incident Puts Security Spending — and Stocks — Back in View

The SharePoint incident showed how even core enterprise software can be exploited through a single overlooked vulnerability. Security firms with strong recurring revenue, proven solutions, and cloud-native architectures are now at the center of investor discussions.

CyberArk, Broadcom, and Zscaler each address different areas of risk:

• CyberArk handles identity and access control.

• Broadcom delivers integrated endpoint and infrastructure security.

• Zscaler applies real-time filtering and Zero Trust at the cloud layer.

All three are backed by strong balance sheets, steady growth, and increased attention from institutional analysts.

Also Read: China-Backed Hackers Exploit Microsoft SharePoint Zero-Day, Say Google and Microsoft