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Core Viewpoint - Zscaler's recent earnings report shows strong performance with significant revenue and earnings growth, indicating a positive trend leading up to the next earnings release [2][3][9]. Financial Performance - Zscaler reported Q4 fiscal 2025 non-GAAP earnings of 89 cents per share, exceeding estimates by 11.3% and reflecting a year-over-year increase of 23.6% [2]. - Revenues for Q4 reached $719.2 million, surpassing estimates by 1.9% and management's guidance, with a year-over-year growth of 21% [3]. - Calculated billings increased by 32% year over year to $1.2 billion, with the Americas contributing 55% of revenues [4]. Customer Metrics - As of July 31, Zscaler had 664 customers with annualized recurring revenues (ARR) of $1 million or more, and 3,494 customers with ARR exceeding $100,000 [5]. Operating Details - Non-GAAP gross profit rose 18.5% year over year to $570.1 million, while the gross margin contracted to 79.3% [6]. - Non-GAAP operating income increased to $158.9 million, with an operating margin of 22.1% [6]. Balance Sheet & Cash Flow - Zscaler's cash, cash equivalents, and short-term investments totaled $3.57 billion as of July 31, 2025, up from $3.01 billion in April 2025 [7]. - The company generated operating cash flow of $250.6 million and free cash flow of $171.9 million in Q4 [7]. Guidance - For fiscal 2026, Zscaler forecasts revenues between $3.265 billion and $3.284 billion, with non-GAAP earnings per share expected in the range of $3.64 to $3.68 [9]. Industry Context - Zscaler is part of the Zacks Security industry, which has seen positive performance from peers like CrowdStrike, which reported a 21% year-over-year revenue increase [13].

Core Insights - The session focuses on Snowflake's security approach and the shared responsibility model, emphasizing the need for customers to ensure data security [2][3] - The discussion will address challenges related to managing large volumes of data across various databases and how automated tools can assist in this process [3] Group 1: Snowflake's Security Model - Snowflake promotes a shared responsibility model for security, which requires customer involvement to secure their data [2] - The session will cover the necessary actions customers must take to align with Snowflake's security framework [2] Group 2: Data Management Challenges - The presentation will highlight the difficulties of securing vast amounts of data stored in data lakes and various services [3] - An automated tool, specifically DSPM, will be discussed as a solution to enhance data security within Snowflake [3] Group 3: Zscaler's Role - Zscaler will provide a deep dive into its DSPM capabilities, detailing how it can improve the security and protection of data in Snowflake [3]

Group 1 - The session features Ofer Yarom from Zscaler, Sushil Menon, and Jake Berkowsky from Snowflake, focusing on security in data management [1][2] - Jake Berkowsky will discuss Snowflake's security model and the shared responsibility model, emphasizing customer roles in data security [2][3] - The discussion will address challenges in managing large datasets across various databases and how automated tools like DSPM can assist in securing Snowflake data [3] Group 2 - Sushil Menon will provide an in-depth look at Zscaler's DSPM and its functionality in enhancing the security and protection of Snowflake data [3] - The session is structured to last approximately 40 minutes, with a Q&A segment to address audience questions in real-time [4]

Core Insights - Fidelity Growth Strategies Fund reported a 22.74% return in Q2 2025, underperforming the benchmark Russell Midcap Growth Index which returned 18.20% [1] - The fund focuses on mid-cap growth investments in high-quality companies with consistent growth and positive free cash flow [1] - U.S. mid-cap growth stocks rebounded in Q2 2025 after a brief decline in early April due to President Trump's tariff announcement [1] Company Highlights - Zscaler, Inc. (NASDAQ:ZS) is highlighted as a key stock in the Fidelity Growth Strategies Fund's portfolio, with a one-month return of 3.47% and a 66.89% increase over the last 52 weeks [2] - As of September 25, 2025, Zscaler's stock closed at $286.66, with a market capitalization of $45.379 billion [2] - The fund's decision to not hold Zscaler, which gained 58%, negatively impacted its relative performance [3] Financial Performance - Zscaler reported a fiscal fourth quarter revenue growth of 21% year-over-year, reaching $719 million [4] - The company exceeded analysts' expectations in its first-quarter results and revised its full-year guidance upward [3] - The number of hedge funds holding Zscaler increased from 46 to 60 in the second quarter, indicating growing interest [4]

Core Viewpoint - J.P. Morgan identifies Zscaler, Varonis, and SailPoint as top cybersecurity stocks to consider for investment as the year concludes [2] Group 1: Company Insights - Zscaler (NASDAQ:ZS), Varonis (NASDAQ:VRNS), and SailPoint (NASDAQ:SAIL) are highlighted as key players in the cybersecurity sector [2] - The demand for Secure Access Service Edge (SASE) and Next Generation Security Information and Event Management (SIEM) remains high within the network security domain, indicating robust market conditions [2]

Core Insights - India's artificial intelligence startup ecosystem is expected to experience significant growth-stage funding within the next 4-12 months, with projections of $100 million funding rounds becoming common [1][12] Investment Trends - WestBridge Capital has already led several substantial investments in AI startups in 2025, including a $60 million round in Tessel, a $50 million Series B in UnifyApps, and a $40 million investment in Finbox [3][12] - The firm is focusing on enterprise-oriented AI investments across both infrastructure and application layers, aiming to serve global enterprises [4][6] Market Dynamics - Investor interest in AI has shifted from broad enthusiasm to a more focused approach, with firms like Peak XV and Lightspeed concentrating on specific application layers, while WestBridge maintains a broader investment strategy [4] - The IT and business process outsourcing (BPO) industry in India is anticipated to be one of the first sectors disrupted by AI, as it can significantly reduce operational costs [6] Company Portfolio - WestBridge Capital manages over $7 billion in assets, with early-stage investments ranging from $5-10 million, growth-stage investments typically between $50 million and $70 million, and late-stage deals spanning $100-300 million [9][12] - The firm has a diverse portfolio that includes several unicorns such as Rapido, Innovaccer, and PhysicsWallah, indicating a strong presence in various sectors [10][12] Recent Exits - Notable exits for WestBridge include the acquisition of GlobalLogic by Hitachi for $9.6 billion and a complete exit from Aptus Value Housing Finance in a block deal worth ₹2,600 crore [11][12]

Core Insights - Cybersecurity threats are increasing rapidly, with AI making it easier for attackers to exploit vulnerabilities in corporate systems [1][2] - Generative AI tools can quickly identify vulnerabilities that previously required extensive research, necessitating companies to adopt AI technologies for defense [2][3] - Cybersecurity stocks are performing well, with Zscaler shares up over 57% year-to-date, indicating investor confidence in AI-driven demand for advanced security solutions [3] Industry Challenges - The adoption of generative AI agents could significantly increase cybersecurity challenges, potentially making data protection ten times more difficult [4] - While financial institutions have improved their security measures, critical infrastructure sectors like utilities remain vulnerable to cyber threats [5] Company Performance - Zscaler has over 50 million users and employs a "zero trust exchange" model to securely connect users, applications, and devices, which can also be adapted for AI agent governance [4] - Zscaler reported a 146% increase in blocked attacks year-over-year, marking the largest spike in three years, alongside a 70% rise in public extortion cases [6]

Core Insights - Zscaler is a pioneer in zero trust security, which fundamentally changes how access is granted within organizations, limiting users to specific applications rather than broad access [2][4][5] - The company has a market capitalization of $43 billion, indicating significant investor confidence and market presence [2] - Zscaler's approach is positioned to address the evolving challenges of cybersecurity, particularly with the rise of AI and agentic AI, which complicates security protocols [25][26] Company Overview - Zscaler operates a zero trust exchange that facilitates secure access for approximately 50 to 55 million users [27] - The company aims to secure communications between AI agents and applications, addressing the growing complexity of cybersecurity threats [26][27] - Zscaler's technology is designed to replace traditional firewalls and VPNs, which are increasingly seen as inadequate in modern security landscapes [16][20] Industry Context - The rise of AI is viewed as a transformative force in cybersecurity, with implications that could surpass those of the internet and mobile technology [25] - Cybersecurity threats are intensifying, with ransomware attacks increasing at an alarming rate, particularly from adversaries in Eastern Europe and China [38][39] - The security industry is urged to adopt AI-driven solutions to combat the rapid evolution of cyber threats, as attackers are leveraging AI to exploit vulnerabilities more efficiently [32][33] Leadership Insights - The founder of Zscaler emphasizes the importance of passion and integrity in entrepreneurship, highlighting that success in startups often comes from a genuine desire to solve complex problems [12][18] - Zscaler's leadership is focused on long-term growth and innovation, with a goal of reaching $10 billion in annual recurring revenue (ARR) [20] - The company is actively working with public sector entities to enhance security measures for critical infrastructure, which remains vulnerable to cyber threats [36]

Core Viewpoint - The latest earnings season has alleviated investor concerns regarding the artificial intelligence boom, highlighting robust growth outlooks and capital spending projections from tech companies [1] Group 1: Broadcom (AVGO) - Broadcom reported impressive fiscal third-quarter results, driven by AI demand, and secured a new customer worth $10 billion [3][4] - Analyst Harlan Sur from JPMorgan reaffirmed a buy rating on Broadcom, raising the price target to $400 from $325, citing strong fundamentals and accelerating AI demand [4][6] - Broadcom's AI revenue grew 18% sequentially in Q3 FY25, with guidance for a 19% quarter-over-quarter growth to $6.2 billion for Q4 [5][6] Group 2: Zscaler (ZS) - Zscaler delivered strong Q4 FY25 results, driven by demand for its Zero Trust and AI security solutions, prompting Stifel analyst Adam Borg to raise the price target to $330 from $295 [8][10] - The company experienced a 31% growth in remaining performance obligations (RPO), marking the fourth consecutive quarter of acceleration [10][11] - Borg expects Zscaler to maintain high-teens top-line growth and margin expansion, supported by its leading portfolio and emerging AI security solutions [11] Group 3: Oracle (ORCL) - Oracle's stock surged due to robust cloud growth projections, despite a Q1 earnings miss, with a 359% year-over-year growth in remaining performance obligations to $455 billion [13][14] - Analyst Brent Thill from Jefferies raised the price target to $360 from $270, emphasizing the significant growth in RPO and its implications for AI optimism [14][15] - Oracle's Cloud Infrastructure business is projected to grow by 77% to $18 billion in fiscal 2026, indicating rising demand for AI workloads [16]