--- title: "Cybersecurity Industry: Companies, KPIs" description: "168 SEC filers are classified under the Standard Industrial Classification codes that describe the cybersecurity industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/cybersecurity/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Cybersecurity Industry ## Direct Answer 168 SEC filers are classified under the Standard Industrial Classification codes that describe the cybersecurity industry, and their latest annual reports show $697.8 billion of combined revenue and a median operating margin of -5.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Cybersecurity companies sell software and services that protect networks, endpoints, identities, cloud workloads and data from attack, mostly by subscription. Demand is persistent, and vendors compete as platforms. The first numbers to compare across companies here are annual recurring revenue, net retention and billings and remaining performance obligations. ## Key Industry Metrics - **Annual recurring revenue**: Annualized value of subscription contracts. It indicates scale, and growth shows how many customers adopt the vendor's platform as threats and compliance needs persist. - **Net retention**: Spending from existing customers versus a year earlier. Above 100% shows customers adding modules as vendors consolidate tools, while declines show churn to rival platforms. - **Billings and remaining performance obligations**: Amounts invoiced in a period and contracted revenue not yet recognized. They lead revenue and show demand ahead, though multi-year prepayments can distort short-term comparisons. - **Gross margin**: Revenue left after hosting, threat research and support. Cloud-delivered products process large volumes of data, so margin shows how well the vendor scales delivery. - **Free cash flow**: Cash from operations after capital spending. Upfront billing can lift cash above profit, so check it alongside stock compensation and billing terms to understand real cash generation. ## Primary Macro Drivers - **Threat environment and breaches**: Each major breach or new attack technique prompts companies to buy more tools, supporting bookings and annual recurring revenue growth. - **Regulation and disclosure rules**: Disclosure and data-protection rules push companies to document and improve defenses, adding mandated spending that supports renewals and new modules. - **Cloud migration**: Workloads moving to the cloud need security tools built for that environment, expanding the market and revenue per customer. - **Vendor consolidation**: Customers who want fewer security vendors buy more modules from one platform, raising net retention for broader vendors and squeezing point-product sellers. ## Major Risks - **Competition and platform bundling**: Rivals and large suites sell overlapping modules at lower incremental price, pressuring pricing and win rates; watch net retention and discounting commentary. - **Budget scrutiny**: When companies tighten spending, security purchases can be delayed or trimmed to core needs; watch billings and remaining performance obligations for slowing. - **Execution on integrations**: Combining acquired products into one platform is hard and can delay releases and annoy customers; watch operating margin, integration costs and retention. - **Breach or outage damaging trust**: A successful attack on the vendor or a faulty update can bring lost customers and legal exposure; watch disclosed incidents, churn and liability language. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Low | | Regulatory Intensity | Low | | Industry Maturity | Growth | | Geographic Importance | U.S. / Global | ## Cybersecurity Filers in the SEC Record 168 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 7372, 7373. Their latest fiscal years end between 2023 and 2026, and together they reported $697.8 billion of revenue. Median revenue growth over the prior year was 12.7%. Median operating margin was -5.5% and median net margin -2.5%. Median total liabilities were 46% of total assets, and 75 of 168 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Microsoft Corp](https://www.getswoopr.com/stocks/companies/microsoft/) | $281.7 billion | 14.9% | 45.6% | 36.1% | FY 2025 | | [Oracle Corp](https://www.getswoopr.com/stocks/companies/oracle-corporation/) | $67.4 billion | 17.3% | 30.6% | 25.2% | FY 2026 | | [Salesforce, Inc.](https://www.getswoopr.com/stocks/companies/salesforce/) | $41.5 billion | 9.6% | 20.1% | 18.0% | FY 2026 | | [Block, Inc.](https://www.getswoopr.com/stocks/companies/block-inc/) | $24.2 billion | 0.3% | 7.1% | 5.4% | FY 2025 | | [Adobe Inc.](https://www.getswoopr.com/stocks/companies/adobe/) | $23.8 billion | 10.5% | 36.6% | 30.0% | FY 2025 | | [Intuit Inc.](https://www.getswoopr.com/stocks/companies/intuit/) | $18.8 billion | 15.6% | 26.1% | 20.5% | FY 2025 | | [Leidos Holdings, Inc.](https://www.getswoopr.com/stocks/companies/leidos/) | $17.2 billion | 3.1% | 12.3% | 8.4% | FY 2026 | | [Kyndryl Holdings, Inc.](https://www.getswoopr.com/stocks/companies/kyndryl-holdings-inc/) | $15.1 billion | 0.2% | n/a | 1.2% | FY 2026 | The 8 largest of 168 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Cybersecurity guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Information Technology - [Information Technology sector overview](https://www.getswoopr.com/stocks/industries/information-technology/) - [Data Center IT Services](https://www.getswoopr.com/stocks/industries/information-technology/data-center-it-services/) - [CRM Software](https://www.getswoopr.com/stocks/industries/information-technology/crm-software/) - [Data Center Networking](https://www.getswoopr.com/stocks/industries/information-technology/data-center-networking/) - [CPU & Processor Semiconductors](https://www.getswoopr.com/stocks/industries/information-technology/cpu-and-processor-semiconductors/) - [Data Center Semiconductors](https://www.getswoopr.com/stocks/industries/information-technology/data-center-semiconductors/) - [Contract Electronics Manufacturing](https://www.getswoopr.com/stocks/industries/information-technology/contract-electronics-manufacturing/) - [Data Security](https://www.getswoopr.com/stocks/industries/information-technology/data-security/) - [Container & Kubernetes Software](https://www.getswoopr.com/stocks/industries/information-technology/container-and-kubernetes-software/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Cybersecurity industry? Key performance indicators for the Cybersecurity industry include: Annual recurring revenue, Net retention, Billings and remaining performance obligations, Gross margin, Free cash flow. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Cybersecurity industry? The Cybersecurity industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Cybersecurity industry? The primary risks for Cybersecurity companies include: Competition and platform bundling, Budget scrutiny, Execution on integrations, Breach or outage damaging trust. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).