Core Insights - Zscaler, Inc. reported strong first-quarter fiscal 2026 results with non-GAAP earnings of 96 cents per share, exceeding estimates by 12.94% and showing a year-over-year increase of 23.6% driven by higher revenues and effective cost management [1][9] - The company's revenues for the first quarter reached $788.1 million, surpassing the Zacks Consensus Estimate by 1.91% and management's guidance, reflecting a 26% year-over-year growth [2][9] - Zscaler raised its fiscal 2026 revenue guidance to a range of $3.282-$3.301 billion, up from the previous forecast, indicating strong market demand and performance [7] Financial Performance - Non-GAAP gross profit increased by 24.5% year over year to $630 million, while the gross margin contracted by 100 basis points to 80% [5] - Non-GAAP operating income rose to $172 million from $90 million in the previous year, with the operating margin expanding by 100 basis points to 22% [5] - Remaining Performance Obligations (RPO) reached $5.9 billion, a 35% increase year over year, indicating strong future revenue commitments [3][9] Customer Growth - Zscaler added multiple large customers across its offerings, ending the quarter with 698 customers generating $1 million or more in annual recurring revenues (ARR) [4] - The total customer count for ARR exceeding $100,000 reached 3,754 by the end of the first quarter [4] Cash Flow and Balance Sheet - As of October 31, 2025, Zscaler had $3.32 billion in cash and short-term investments, down from $3.57 billion as of July 31, 2025 [6] - The company generated operating cash flow of $448.3 million and free cash flow of $413.3 million during the first quarter [6] Future Guidance - For the second quarter of fiscal 2026, Zscaler projects revenues between $797 million and $799 million, with non-GAAP earnings per share expected between 89 cents and 90 cents [10] - The Zacks Consensus Estimate for second-quarter revenues is $794.38 million, indicating a year-over-year growth of 22.6% [10]

Market Overview - U.S. stock futures rose on Wednesday following Tuesday's gains, with major benchmark indices showing positive movement [1] - The three-day winning streak occurs during a holiday-shortened week, with markets closed on Thursday and open until 1:00 p.m. ET on Friday [1] - Traders are pricing in an 84.9% likelihood of a Federal Reserve interest rate cut in December, influenced by dovish central bank guidance [2] Index Performance - Dow Jones increased by 0.21%, S&P 500 by 0.23%, Nasdaq 100 by 0.29%, and Russell 2000 by 0.22% [2] - The SPDR S&P 500 ETF Trust (SPY) rose by 0.29% to $677.01, while Invesco QQQ Trust ETF (QQQ) advanced by 0.36% to $611.10 in premarket trading [2] Company Highlights - **Dell Technologies Inc. (DELL)**: Stock jumped 4.94% after mixed Q3 results; raised full-year revenue outlook to $111.2 billion - $112.2 billion from $105 billion - $109 billion [7] - **HP Inc. (HPQ)**: Stock fell 5.67% despite better-than-expected Q4 earnings; announced layoffs and issued weak forward guidance [7] - **Autodesk Inc. (ADSK)**: Stock climbed 7% after beating Q3 earnings and revenue expectations; raised full-year revenue guidance to $7.15 billion - $7.17 billion and adjusted earnings guidance to $10.18 - $10.25 per share [7] - **Zscaler Inc. (ZS)**: Stock dropped 7.15% despite beating analyst estimates and raising fiscal 2026 outlook; maintained a weaker price trend in the short and medium terms but a strong long-term trend [14] - **Uber Technologies Inc. (UBER)**: Stock increased by 0.73% after announcing the launch of Level 4 fully driverless Robotaxi operations in Abu Dhabi [14] Sector Performance - Communication services, health care, and consumer discretionary sectors recorded the biggest gains on Tuesday, leading the S&P 500 into positive territory [9] Economic Data - Initial jobless claims data for the week ending Nov. 22 and September's delayed durable-goods orders data will be released at 8:30 a.m. ET [15]

Market Overview - U.S. stock futures rose on Wednesday following Tuesday's gains, with major benchmark indices showing positive movement [1] - The three-day winning streak occurs in a holiday-shortened week, with markets closed on Thursday and open until 1:00 p.m. ET on Friday [1] - Traders are pricing in an 84.9% likelihood of a Federal Reserve interest rate cut in December, influenced by dovish central bank guidance [2] Stock Performance - Dell Technologies Inc. (NYSE:DELL) increased by 4.94% after reporting mixed Q3 results and raising its full-year revenue outlook to $111.2 billion to $112.2 billion, up from $105 billion to $109 billion [7] - HP Inc. (NYSE:HPQ) fell by 5.67% despite better-than-expected Q4 earnings, due to announced layoffs and weak forward guidance [7] - Autodesk Inc. (NASDAQ:ADSK) rose by 7% after beating Q3 earnings and revenue expectations, guiding for full-year revenue of $7.15 billion to $7.17 billion and adjusted earnings of $10.18 to $10.25 per share [7] - Zscaler Inc. (NASDAQ:ZS) dropped 7.15% despite beating analyst estimates and raising its fiscal 2026 outlook [14] - Uber Technologies Inc. (NYSE:UBER) was up 0.73% after launching Level 4 fully driverless Robotaxi operations in Abu Dhabi [14] Sector Performance - Communication services, health care, and consumer discretionary sectors recorded the largest gains on Tuesday, contributing to the positive performance of the S&P 500 [9] - The Nasdaq Composite rose by 0.67%, S&P 500 by 0.91%, Dow Jones by 1.43%, and Russell 2000 by 2.14% [10] Economic Indicators - Initial jobless claims data for the week ending Nov. 22 and September's durable-goods orders data will be released on Wednesday [15]

Core Insights - Zscaler reported better-than-expected Q1 results for fiscal year 2026, with a non-GAAP EPS of $0.96, exceeding market expectations by $0.10 [1] - Revenue reached $788.1 million, a 26% year-over-year increase, surpassing expectations by $14.3 million [1] - Annual recurring revenue (ARR) hit $3.204 billion, also reflecting a 26% year-over-year growth, indicating strong execution in the zero-trust security market and expansion of AI security products [1] Financial Performance - Revenue growth accelerated from 21% in the previous quarter to 26% [1] - New ARR was $189 million, a decrease from $198 million in the previous quarter, which may exert pressure on after-hours stock prices despite solid fundamentals [1] - Zscaler projects full-year revenue between $3.282 billion and $3.31 billion [1] Stock Market Reaction - Zscaler's stock fell over 7% in pre-market trading following the earnings report [1] - The closing price on November 25 was $289.73, with a pre-market price of $268.64 on November 26 [2] - The stock experienced a trading volume of 3.3195 million shares, with a market capitalization of approximately $46.204 billion [2]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Insights - Zscaler's stock price initially increased by 3.35% to $290 following the release of strong results, but later erased these gains due to a mild forward estimate [1] Company Performance - The company reported strong results, indicating robust performance in its operations [1] - Despite the strong results, the forward estimate was described as mild, which may have contributed to the stock's decline [1] Market Reaction - The stock's initial rise was followed by a retreat, suggesting market volatility and investor sentiment influenced by future expectations [1]

Core Insights - Zscaler reported revenue of $788.11 million for the quarter ended October 2025, marking a year-over-year increase of 25.5% and exceeding the Zacks Consensus Estimate by 1.91% [1] - The company's EPS for the same period was $0.96, up from $0.77 a year ago, representing a surprise of 12.94% over the consensus estimate of $0.85 [1] Financial Performance Metrics - Remaining Performance Obligations stood at $5.93 billion, surpassing the average estimate of $5.65 billion from three analysts [4] - The Dollar-Based Net Retention Rate was reported at 115%, slightly above the average estimate of 114.1% from three analysts [4] - Revenue from Direct Customers reached $122.1 million, significantly exceeding the average estimate of $92.97 million from two analysts, reflecting a year-over-year increase of 75.5% [4] - Revenue from Channel Partners was $666.01 million, which fell short of the average estimate of $680.24 million from two analysts, but still represented a year-over-year growth of 19.3% [4] Stock Performance - Zscaler's shares have declined by 14.1% over the past month, compared to a decrease of 1.2% in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Zscaler exceeded Wall Street expectations for quarterly revenue and profit, indicating strong market performance [1] Company Performance - The company's revenue growth was driven by robust demand for its cloud and artificial intelligence security solutions [1]

Core Insights - Zscaler reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.77 per share a year ago, resulting in an earnings surprise of +12.94% [1] - The company achieved revenues of $788.11 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 1.91% and up from $627.96 million year-over-year [2] - Zscaler's stock has increased approximately 55.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 14% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $794.38 million, and for the current fiscal year, it is $3.66 on revenues of $3.27 billion [7] - The estimate revisions trend for Zscaler was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Security industry, to which Zscaler belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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