--- title: "Data Security Industry: Companies, KPIs" description: "140 SEC filers are classified under the Standard Industrial Classification code that describes the data security industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/data-security/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Data Security Industry ## Direct Answer 140 SEC filers are classified under the Standard Industrial Classification code that describes the data security industry, and their latest annual reports show $630.2 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 Data security companies protect sensitive information through encryption, access control, backup and data loss prevention, sold as software and subscriptions. Regulation and ransomware risk drive spending. The first numbers to compare across companies here are annual recurring revenue, net retention and customer count. ## Key Industry Metrics - **Annual recurring revenue**: Annualized value of subscription contracts for protecting data. It follows data growth and regulation, and growth shows how many organizations adopt tools for encryption and recovery. - **Net retention**: Spending from existing customers versus a year earlier. Above 100% shows customers adding data sources and modules, while declines suggest consolidation onto other vendors. - **Customer count**: The number of organizations paying. Growth shows reach, but large accounts with many data sources matter more, so count should be read with average contract size. - **Gross margin**: Revenue left after hosting, storage and support. Backup and protection services store and process large volumes, so margin shows the cost of serving data-heavy customers. - **Billings**: Amounts invoiced in a period. Billings lead revenue and show demand, though prepaid multi-year contracts and timing can make quarterly comparisons noisy. ## Primary Macro Drivers - **Ransomware and breach risk**: Attacks that encrypt or steal data push firms to buy backup, encryption and recovery tools, supporting annual recurring revenue and new customers. - **Data privacy regulation**: Rules on handling personal and sensitive data create mandatory controls, adding spending that supports renewals and larger deals. - **Cloud data growth**: As data piles up across cloud services, more of it needs discovery and protection, raising revenue per customer and customer count. - **AI governance**: Companies setting rules for how models can access data buy controls that track and limit it, creating a new category of demand. ## Major Risks - **Platform competition**: Big platform vendors bundle similar protections, pressuring pricing and win rates; watch net retention and discounting commentary. - **Budget cuts**: Customers cut or delay purchases when budgets tighten, slowing new deals; watch billings and renewals for signs of softening. - **Technology change**: New architectures can render older products less relevant and favor newer vendors; watch customer churn, product mix and research spending. - **Long sales cycles**: Large deals take months of reviews and approvals, so revenue shows up late; watch billings against revenue and delayed-deal commentary. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Low | | Regulatory Intensity | Medium | | Industry Maturity | Growth | | Geographic Importance | U.S. / Global | ## Data Security Filers in the SEC Record 140 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 7372. Their latest fiscal years end between 2024 and 2026, and together they reported $630.2 billion of revenue. Median revenue growth over the prior year was 13.5%. Median operating margin was -5.5% and median net margin -2.3%. Median total liabilities were 44% of total assets, and 65 of 140 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 | | [Servicenow, Inc.](https://www.getswoopr.com/stocks/companies/servicenow/) | $13.3 billion | 20.9% | 13.7% | 13.2% | FY 2025 | | [Shopify Inc.](https://www.getswoopr.com/stocks/companies/shopify/) | $11.6 billion | 30.1% | 12.7% | 10.7% | FY 2025 | The 8 largest of 140 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 Data Security 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 Storage Hardware](https://www.getswoopr.com/stocks/industries/information-technology/data-storage-hardware/) - [Data Center Semiconductors](https://www.getswoopr.com/stocks/industries/information-technology/data-center-semiconductors/) - [Database Software](https://www.getswoopr.com/stocks/industries/information-technology/database-software/) - [Data Center Networking](https://www.getswoopr.com/stocks/industries/information-technology/data-center-networking/) - [Deposition Equipment](https://www.getswoopr.com/stocks/industries/information-technology/deposition-equipment/) - [Data Center IT Services](https://www.getswoopr.com/stocks/industries/information-technology/data-center-it-services/) - [Design & Engineering Software](https://www.getswoopr.com/stocks/industries/information-technology/design-and-engineering-software/) - [Cybersecurity](https://www.getswoopr.com/stocks/industries/information-technology/cybersecurity/) ### 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 Data Security industry? Key performance indicators for the Data Security industry include: Annual recurring revenue, Net retention, Customer count, Gross margin, Billings. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Data Security industry? The Data Security 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 Data Security industry? The primary risks for Data Security companies include: Platform competition, Budget cuts, Technology change, Long sales cycles. 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/).