It's time to spotlight AI versus cybersecurity and why some of these cyber stocks could be the real AI winners. Joining us now Dr. . Chris Pierson, the CEO at Black Cloak to take a deeper dive into the space.Chris, thank you so much for being with us today. You know, we spend so much time talking about who the AI winners are going to be and we talk about all these big hyperscaler names and I've said SASpocalypse more times than I would like to admit at this point over the last month, but you make a very com ...

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. The performance was in line with expectations for the full year. The firm believes that the Strategy underperformed in 2025 because it did not own Palantir Technologies Inc (PLTR). The Strategy focuses on achieving solid risk-a ...

Core Insights - Okta and Zscaler are both leaders in the cybersecurity market, serving different niches, but Zscaler is viewed as the stronger long-term investment due to its superior growth trajectory [9] Okta - Okta reported a 12% year-over-year revenue increase for fiscal 2026, with subscriptions nearing $3 billion and a turnaround from net loss to net gain in operating income [1] - Guidance for fiscal 2027 indicates a slowdown, with only 9% revenue growth expected, down from 12% [2] - The company faces challenges as AI poses a significant threat, and its stock has dropped 30% in the past year, potentially making it undervalued [3] Zscaler - Zscaler reported a 26% year-over-year revenue increase in Q2 of fiscal 2026, with annual recurring revenue growing 25% to $3.3 billion [5] - The company revised its full-year 2026 guidance upward, now expecting 24% revenue growth, and its stock is trading at a premium with a forward P/E ratio above 40 [6] - Zscaler meets the "Rule of 40" for SaaS companies, indicating efficient growth with a combined growth rate and profit margin exceeding 40% [8] - The company is focusing on AI-driven security products, collaborating with AI to enhance customer safety [8]

Core Thesis - Zscaler, Inc. is viewed positively by analysts, with a current share price of $153.76 and a forward P/E ratio of 40.32, indicating potential for growth in the cloud security sector [1][3] Financial Performance - Zscaler reported FY1Q26 results with revenue of $788 million, reflecting a 26% year-over-year growth, and operating income of $172 million, achieving a 21.8% operating margin, attributed to disciplined expense management and scale benefits [3] - Earnings per share (EPS) reached $0.96, significantly surpassing expectations, while annual recurring revenue (ARR) increased by 26% year-over-year to $3.2 billion, driven by strong demand across key growth areas [4] - Remaining performance obligations (RPO) rose 35% year-over-year to $5.9 billion, with current RPO growing 29%, indicating strong forward visibility for the company [5] Market Reaction and Concerns - Despite strong fundamentals, Zscaler's stock declined post-results due to investor concerns regarding limited disclosure on organic versus inorganic growth following the Red Canary acquisition and fears of slowing momentum in core offerings [6] - Management indicated that the market reaction may have been overdone, as Red Canary contributed approximately $89 million in ARR, with integration progressing smoothly and operational synergies emerging [6] Future Outlook - Zscaler maintained a cautious guidance approach amid a tight IT spending environment but raised its FY2026 ARR, revenue, and EPS outlook modestly, indicating confidence in continued demand for Zero Trust security and AI security solutions [7]

Key Takeaways CRWD's Falcon Flex ARR topped $1.69B in Q4 FY26, rising over 120% with strong enterprise adoption.Zscaler faces margin pressure as newer AI security products prioritize adoption over profitability.CRWD trades at 18.13X forward sales versus ZS at 6.74X, reflecting stronger growth expectations.CrowdStrike (CRWD) and Zscaler (ZS) are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. While CrowdStrike specializes in endpoint ...

We recently compiled a list of the 11 Technology Stocks with Insider Buying in 2026. Zscaler, Inc. (NASDAQ:ZS) is one of the stocks with insider buying on this list. TheFly reported on March 10 that Oppenheimer adjusted its price target for ZS to $250 from $280 while maintaining an Outperform rating. Following a discussion with the company’s CFO, the firm reaffirmed its confidence in ZS’s strong market position and strategic product roadmap. The company’s core operations remain robust, go-to-market effort ...

Core Insights - Zscaler Inc. is enhancing its global data sovereignty capabilities through its Zero Trust Exchange platform, with a focus on compliance with local laws while maintaining performance [1][2] - The company is introducing in-region SSL inspection and malware analysis to analyze encrypted traffic locally, preventing data from leaving specific territories [2] - Zscaler's architecture allows customers to maintain ownership of their encryption keys and choose between regional or on-premises log storage, ensuring high availability and business continuity [3] Group 1: Expansion and Capabilities - Zscaler is expanding its dedicated control and logging planes to new regions, including Canada, to support enterprises in complying with local regulations [1] - The platform features private, single-tenant service edges for organizations with specific hardware certification needs, along with dedicated technical teams for regulatory interpretation [2] - The expansion is supported by a 'Collect Once, Certify All' framework to facilitate compliance with regulations such as GDPR and NIS2 [3] Group 2: Company Overview - Zscaler operates as a cloud security company, providing cyberthreat protection and data security products globally [4]

Group 1 - The article provides a market analysis focusing on four key companies: Adobe Systems Incorporated, Zscaler Inc, CrowdStrike Holdings Inc, and Datadog Inc [1] Group 2 - Adobe Systems Incorporated is highlighted for its strong performance in the digital media and marketing sectors, indicating robust revenue growth [1] - Zscaler Inc is noted for its leadership in cloud security solutions, with significant increases in customer adoption and revenue [1] - CrowdStrike Holdings Inc is recognized for its innovative cybersecurity offerings, showing impressive growth metrics and market expansion [1] - Datadog Inc is discussed in the context of its observability platform, which has gained traction among enterprises, contributing to its revenue growth [1]

Core Insights - Zscaler (ZS) is positioned to benefit from the growing adoption of enterprise AI, with its core product, the "Zero Trust Exchange," already trusted by over 45% of the Fortune 500, indicating significant upsell opportunities for the company [1] Company Overview - Zscaler's "Zero Trust Exchange" is a key product that aligns with the increasing demand for security solutions in the context of enterprise AI adoption [1] Market Position - The company has established a strong foothold in the market, as evidenced by its trust among a substantial portion of Fortune 500 companies, which enhances its potential for growth and expansion [1]

Core Insights - Zscaler, Inc. (ZS) shares have decreased by 33.7% over the past three months, significantly underperforming the Zacks Computer and Technology sector, which declined by only 1% [1][3] - The decline is more pronounced compared to competitors like Cisco Systems, Fortinet, and Palo Alto Networks, with Fortinet's shares rising by 2.4% during the same period [1][3] Financial Performance - Zscaler reported Q2 FY26 revenues of $816 million, reflecting a 26% year-over-year increase, while EPS rose by 29.5% to $1.01 [7][17] - The company has a growing customer base, with 728 customers generating $1 million or more in annual recurring revenues (ARR), including a significant portion from Fortune 500 and Global 2000 companies [18] Market Position and Valuation - Zscaler holds a premium valuation with a Forward 12-month Price-to-Sales (P/S) ratio of 6.66, higher than the sector average of 6.18 [4] - Compared to key competitors, Zscaler trades at a lower P/S multiple than Palo Alto Networks (10.76) and Fortinet (8.00), but higher than Cisco Systems (4.89) [8] Growth Drivers - Zscaler's three main growth areas—AI Security, Zero Trust Everywhere, and Data Security Everywhere—have surpassed $1 billion in combined ARR, indicating strong growth potential [10][11] - AI Security's ARR is expected to exceed $500 million in fiscal 2026, driven by the adoption of AI Guard and agentic operations [11] - The Z-Flex program has generated over $290 million in total contract value bookings in Q2 FY26, marking a 65% sequential increase, which supports long-term customer relationships and sustainable growth [14] Future Outlook - Despite macroeconomic challenges, Zscaler is well-positioned to benefit from enterprise migration to cloud environments and increasing adoption of AI-driven cybersecurity solutions [19] - The Zacks Consensus Estimate indicates strong double-digit revenue and earnings per share growth for fiscal years 2026 and 2027 [19]