[UBS: Cybersecurity Valuations Surpass Pandemic Peak, 3Q Results Must Exceed Expectations] According to Deep Tide TechFlow, citing research from Tide Research, UBS stated in a report dated September 28, 2026, that the current market-cap-weighted enterprise value/free cash flow for the next 12 months in the cybersecurity sector is 62x, and enterprise value/revenue for the next 12 months is 15x, both exceeding the peak levels during the COVID period. Apart from CrowdStrike, Fortinet, Palo Alto Networks, and Qualys, most vendors did not see accelerated growth in 2Q revenue and billings, and 3Q guidance remains generally lackluster. Since the release of Mythos on April 7, cybersecurity stocks, excluding the aforementioned four companies, have risen by an average of 62%. UBS believes that 3Q results need to significantly exceed expectations to support current valuations, and any minor misstep by CrowdStrike or Palo Alto Networks could impact the entire sector. The competitive narrative among cutting-edge AI labs and infrastructure providers is gaining traction, putting pressure on vendors whose primary value proposition lies in analytics. Corporate governance demands are driving the integration of security budgets with AI deployments, benefiting areas such as identity, governance, and data security.