Direct Answer
140 SEC filers are classified under the Standard Industrial Classification code that describes the identity & access management 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
Identity and access management companies sell software that verifies who users are and controls what they can reach, covering employees, customers and machines. Identity has become the center of security, and revenue is subscription-based. 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 identity tools. It shows how much revenue repeats, and growth follows adoption of single sign-on and privileged access controls.
- Net retention: Spending from existing customers versus a year earlier. Above 100% shows customers adding users, applications and modules, and declines show consolidation onto a broader vendor.
- Customer count: The number of organizations paying. Growth shows reach, but identity revenue scales with users and applications, so read it with spend per customer.
- Gross margin: Revenue left after hosting and support. Cloud-delivered identity handles many logins, so margin shows how efficiently the vendor processes large volumes.
- Billings: Amounts invoiced in a period. Billings lead revenue and show demand ahead, though multi-year prepayments and timing make quarterly comparisons uneven.
Primary Macro Drivers
- Zero-trust adoption: Policies that verify every user and device raise demand for identity tools, supporting annual recurring revenue and customer count.
- Cloud and remote work: More workers and apps outside company networks need identity controls, expanding the number of users and workloads protected.
- Regulation: Rules requiring access controls and audit trails make identity spending mandatory, supporting renewals and larger deals.
- Credential attacks: Stolen credentials are a leading way in, so buyers invest in stronger verification and privileged access, supporting billings and upsell.
Major Risks
- Competition and bundling: Large platforms and suites include basic identity features, pressuring prices and win rates; watch net retention and discounting commentary.
- Platform consolidation: Customers prefer fewer vendors, which can favor broad platforms over specialists; watch customer growth, net retention and module adoption.
- Breach incidents: A successful attack on an identity vendor affects many customers at once, damaging trust and sales; watch disclosed incidents, churn and liability language.
- Pricing pressure: Competition and procurement push prices down at renewal, narrowing gross margin; watch revenue per customer and billings.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Low |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Identity & Access Management 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 | $281.7 billion | 14.9% | 45.6% | 36.1% | FY 2025 |
| Oracle Corp | $67.4 billion | 17.3% | 30.6% | 25.2% | FY 2026 |
| Salesforce, Inc. | $41.5 billion | 9.6% | 20.1% | 18.0% | FY 2026 |
| Block, Inc. | $24.2 billion | 0.3% | 7.1% | 5.4% | FY 2025 |
| Adobe Inc. | $23.8 billion | 10.5% | 36.6% | 30.0% | FY 2025 |
| Intuit Inc. | $18.8 billion | 15.6% | 26.1% | 20.5% | FY 2025 |
| Servicenow, Inc. | $13.3 billion | 20.9% | 13.7% | 13.2% | FY 2025 |
| Shopify Inc. | $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 Identity & Access Management 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.
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Frequently Asked Questions
What are the main KPIs for the Identity & Access Management industry?
Key performance indicators for the Identity & Access Management 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 Identity & Access Management industry?
The Identity & Access Management 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 Identity & Access Management industry?
The primary risks for Identity & Access Management companies include: Competition and bundling, Platform consolidation, Breach incidents, Pricing pressure. Investors should assess each company's exposure to these factors and its track record of navigating them.