Overview
Barclays analysts released a thematic note ahead of the upcoming earnings season, highlighting the most attractive setups among fourteen on‑cycle U.S. software names across security, design and vertical software segments. The note singles out five companies—Cloudflare, Varonis Systems, CCC Intelligent Solutions, Check Point Software, and Tenable Holdings—as having the strongest near‑term upside, while flagging two others for closer monitoring.
Cloudflare, Inc.
Barclays sees the most favorable setup for Cloudflare, citing that a surge in non‑human traffic is inflating request volumes, which should translate into revenue as customers exhaust existing volume caps. The firm notes that Cloudflare now sits in front of roughly 24% of internet traffic via its reverse‑proxy offering. Barclays projects approximately 31% growth in current remaining performance‑obligation (CPO) and about 30% revenue growth for the second quarter, with upside potential as the lag between request volume and monetisation narrows. Recent analyst actions include an upgrade to Sector Outperform by Scotiabank and a price‑target increase from TD Cowen, both referencing AI‑driven growth opportunities. Cloudflare also announced a research pilot with OpenAI to explore how network signals can aid AI search engines in indexing web content.
Varonis Systems, Inc.
Barclays expects Varonis to deliver another earnings beat, driven by continued strength in software‑as‑a‑service (SaaS) annual recurring revenue (ARR) excluding conversions. The bank anticipates that the FY2026 ARR guidance will flow through to a second‑quarter beat, and that ARR growth could accelerate in FY2027 as comparisons ease. Varonis was upgraded to Overweight by Stephens, which also noted media speculation of potential private‑equity interest. Additionally, Varonis secured GovRAMP authorization for its Data Security Platform, enabling it to serve state and local government agencies.
CCC Intelligent Solutions Inc.
Barclays points to positive trends for CCC Intelligent Solutions as industry claim‑volume headwinds begin to normalize. The note highlights two large casualty‑insurance wins that are expected to contribute to revenue in the second half of the year, supporting a favorable outlook for the company.
Check Point Software Technologies Ltd.
Barclays advises investors to watch Check Point, indicating that a catalyst may still be several quarters away. The firm expects mixed checks and go‑to‑market disruptions to weigh on second‑quarter billings, and notes a particularly tough comparison for third‑quarter billings. Improvement, if any, is likely to materialise only in the fourth quarter. Despite the caution, Check Point received an upgrade to Buy from Guggenheim and announced integration of OpenAI models into its security products. The company also made its Cloud Firewall offering available on the AWS European Sovereign Cloud.
Tenable Holdings, Inc.
Barclays projects 7% year‑over‑year growth for calculated current billings and revenue, deeming the targets beatable. The note questions whether a potential revenue beat alone will be sufficient for the stock, which has risen 85% versus the IGV index’s 9% gain during the quarter. Tenable received price‑target increases from both JPMorgan and Needham. Its Tenable One Cloud Exposure product achieved FedRAMP High authorization, and the firm announced a partnership with OpenAI to embed AI capabilities into its exposure‑management platform.
Editorial Note
The article was generated with AI assistance and reviewed by an editor, as indicated in the footer.