Earnings Results to be Released on Tuesday, November 25, After the Close of the MarketSAN JOSE, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, will release first quarter fiscal year 2026 earnings after the market closes on Tuesday, November 25, 2025. The company will host an investor conference call that day at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the results. Date:Tuesday, November 25, 2025Time:1:30 p.m. PTWebcast:https://ir.zscal ...

Core Insights - Zscaler's 2025 ThreatLabz Mobile, IoT, and OT Threat Report highlights the increasing sophistication of malware attacks, with a significant rise in malicious applications targeting productivity tools [1][2] - The report indicates a 67% year-over-year increase in Android malware transactions, with 239 malicious apps identified on the Google Play Store, collectively downloaded over 42 million times [2][10] - The energy sector has seen a staggering 387% increase in attacks, emphasizing the growing threat to critical infrastructure [4][10] Mobile Threat Landscape - Malicious apps are primarily distributed through the "Tools" category, exploiting user trust in productivity applications, especially in hybrid work environments [3] - The top three countries for mobile attacks are India (26%), the United States (15%), and Canada (14%), with India experiencing a 38% increase in mobile threat attacks [7][10] - Adware has become the most prevalent mobile threat, accounting for 69% of cases, surpassing the Joker malware family [11] IoT and OT Threats - Manufacturing and Transportation sectors are the most targeted in IoT attacks, each representing 20.2% of all observed incidents, indicating a diversification of threat actor focus [5] - The Mirai family of malware accounts for approximately 40% of blocked IoT transactions, with Mozi and Gafgyt together making up about 75% of all malicious payloads in IoT environments [6] - The United States is identified as the epicenter for IoT threats, with 54.1% of IoT malware traffic originating from there [7][10] Recommendations and Solutions - A Zero Trust approach combined with AI-powered threat detection is recommended to mitigate the risks posed by evolving attacks [7] - Zscaler's Zero Trust Branch and Cellular solutions aim to enhance security for mobile and IoT devices, ensuring continuous verification and robust policy enforcement [12][13]

Core Insights - Zscaler has acquired AI security pioneer SPLX to enhance its Zero Trust Exchange platform, integrating shift-left AI asset discovery, automated red teaming, and governance to secure AI investments throughout their lifecycle [1][2][3] Company Overview - Zscaler is a leader in cloud security, providing a platform that protects organizations from cyberattacks and data loss by securely connecting users, devices, and applications globally [5] Acquisition Details - The acquisition of SPLX aims to strengthen Zscaler's capabilities in AI security, addressing the expanding attack surface created by increasing AI infrastructure investments projected to exceed $250 billion by the end of 2025 [2][3] - SPLX's technology will introduce a dedicated layer of AI protection within the Zscaler Zero Trust Exchange, enhancing asset management, threat inspection, and governance [3][7] AI Security Enhancements - The integration will include features such as: - AI Asset Discovery and Risk Assessment, covering AI models, workflows, and code repositories in both public and private environments [7] - Automated AI Red Teaming and Remediation, utilizing over 5,000 attack simulations to identify vulnerabilities and provide real-time remediation [7] - AI Runtime Guardrails and Prompt Hardening, enhancing protection for sensitive data and blocking malicious attacks across AI applications and large language models [7] - AI Governance and Compliance, shifting organizations from reactive to proactive protection for their AI investments [7]

Core Insights - Zscaler has introduced new innovations in its Zscaler Digital Experience™ (ZDX™) that enhance enterprise productivity by enabling faster issue detection and resolution, achieving a 98% reduction in issue detection time and resolving issues in minutes [1][2][3] Group 1: ZDX Innovations - The new ZDX features provide end-to-end visibility and control, allowing enterprises to resolve issues quickly, thus minimizing downtime and enhancing user productivity [3] - ZDX unifies device, network, and application telemetry to facilitate rapid root-cause identification, addressing the estimated $400 billion annual losses from digital downtime [2][3] - The innovations include Network Intelligence, which identifies ISP bottlenecks and reroutes traffic to ensure fast connectivity, and Zscaler Managed Monitoring, which provides 24/7 monitoring of critical applications [6] Group 2: Market Positioning - Zscaler is positioned to meet the evolving demands of a dynamic, distributed, and AI-first world by consolidating security and networking functions through its globally distributed, multi-tenant cloud [3] - The shift from fragmented point solutions to unified platforms is highlighted as a key trend, with Zscaler leveraging AI to enhance user experience and accelerate issue resolution [3] Group 3: Operational Benefits - The new features allow organizations to monitor device health and performance, proactively addressing widespread issues, extending device lifecycles, and reducing hardware refresh costs [6] - By holding service providers accountable and ensuring compliance with SLAs, organizations can secure compensation and negotiate better terms, further enhancing productivity [6]

Core Insights - Cybersecurity stocks have shown mixed results in 2025, with significant attention on upcoming earnings reports from major companies like CheckPoint Software, Tenable, and Cloudflare [1][2] - Analysts predict that corporate spending on cybersecurity will remain a priority, despite the sector's underperformance compared to the broader market since Q2 [2][3] Company Performance - Zscaler has seen a remarkable 79% increase in 2025, while Cloudflare has surged by 102%, making them top performers in the cybersecurity sector [4] - Other notable performers include CrowdStrike with a 54% rise and Palo Alto Networks with a 19% increase, while Fortinet has declined by 9% [5] Market Trends - Demand for network security solutions like SASE and next-gen SIEM remains high, with identity and data security gaining importance as enterprises adapt to new threats [6] - The buzz around artificial intelligence is driving interest in cybersecurity stocks, as firms leverage AI tools to enhance threat detection and response capabilities [8] Major Deals - Palo Alto Networks is set to acquire CyberArk for $25 billion, while Alphabet has agreed to purchase Wiz for $32 billion, both deals expected to reshape the cybersecurity market [7] Industry Outlook - Analysts believe that the recent pullbacks in cybersecurity valuations make the sector more attractively positioned, with many customers still committed to nondiscretionary projects [3]

Group 1 - Zscaler (ZS) has reached a new high, breaking out of a cup base at a buy point of 318.46 in early October, and is currently in a buy zone [1] - The stock is on track for its second consecutive weekly win after pulling back to its 21-day moving average [1] - Zscaler's stock has experienced a significant rally of 74%, making it a focus for investors [4] Group 2 - The stock market is currently at highs, influenced by huge earnings reports and upcoming events involving the Fed and trade negotiations between Trump and Xi [1] - Futures are rising, with notable performances from Intel and AI-related companies, particularly Comfort Systems [2]

Core Insights - The Red Canary report highlights the increasing pressure on security leaders to address cybersecurity threats and manage complex technology stacks despite rising investments in security measures [2][6]. Group 1: Financial Impact of Cyber Incidents - Security leaders estimate that cyber incidents cost their organizations an average of $3.7 million over the past year, with 46% experiencing service outages or disruptions due to attacks [2]. - 80% of security leaders report spending more on security than ever, yet breaches and threats continue to escalate [6]. Group 2: Challenges in Security Operations - Security operations center (SOC) teams are struggling to secure cloud environments, identities, and AI technologies amid evolving threats, which amplifies the risk and business impact of cyberattacks [2]. - The attack surface has widened by 41% in the past 12 months, and 73% of security leaders indicate that the time from detecting an attack to resolution has increased [6]. Group 3: Role of AI in Cybersecurity - 85% of security leaders believe that failing to automate more will result in being overwhelmed by missed threats, while 78% view concerns about AI-generated attacks as exaggerated [4][7]. - AI is currently being utilized in security operations for detection analytics (65%), intrusion detection (59%), and SIEM management (54%) [7]. Group 4: Skills and Resource Shortages - 75% of organizations report skills shortages in intrusion detection, and 72% face shortages in incident response [6]. - Security leaders express concerns that while AI can enhance speed, it may ultimately reduce the ability of teams to solve problems independently [7].

Core Thesis - Zscaler, Inc. is positioned as a foundational security infrastructure provider, similar to Salesforce's role in enterprise software during the 2008 financial crisis, with unique advantages that competitors cannot replicate [2][6] Financial Performance - As of October 10th, Zscaler's share price was $309.88, with a forward P/E of 84.03 [1] - In Q4 FY25, Zscaler reported a 21% year-over-year revenue growth to $719 million, with operating margins reaching a record 22.1% and free cash flow exceeding estimates by 29% [3] Growth Dynamics - The company’s Z-Flex pricing model allows for flexible, consumption-based adoption, which helps mitigate the threat from Microsoft bundling and accelerates platform expansion [3] - High single-digit net new ARR growth and 22-23% total ARR growth indicate that two-thirds of expansion is driven by existing customer adoption, showcasing effective cross-selling across its Zero Trust, Data Security, and Agentic Operations modules [4] Future Outlook - Enterprise AI adoption is a significant catalyst, leading to a 3,500% increase in AI/ML transactions, positioning Zscaler as a control plane for agent-to-agent and agent-to-application communication [5] - Over the next three years, Zscaler could see ARR growth of 20-25%, with potential margin expansion depending on Z-Flex adoption, AI Security momentum, and cross-sell execution [5] Competitive Position - Zscaler is viewed as a rare investment opportunity in transformative infrastructure, with durable competitive advantages and accelerating platform adoption, which could lead to substantial long-term upside as the market recognizes its security infrastructure model [6]

Core Insights - HCLTech and Zscaler are expanding their partnership to enhance AI-powered security and network transformation solutions [1] Company Developments - The partnership aims to leverage AI technologies to improve security measures and network efficiency [1] - HCLTech and Zscaler will collaborate on developing innovative solutions that address the evolving cybersecurity landscape [1] Industry Trends - The expansion of AI in security and network transformation reflects a growing trend in the industry towards integrating advanced technologies for better protection and performance [1] - Companies are increasingly recognizing the importance of AI-driven solutions to combat sophisticated cyber threats [1]

Group 1 - Zscaler (ZS) stock experienced a reduction in its morning loss to approximately 3% on Tuesday afternoon, following two days of approaching a buy point of a base [1] - The stock has increased around 69% year-to-date and has outperformed 88% of stocks in Investor's Business Daily's database [1] - Zscaler was recently highlighted as an IBD Stock to Watch, indicating strong market interest and potential for growth [1] Group 2 - Oracle is leading five AI stocks that are near buy points after a market sell-off, indicating a potential recovery in the AI sector [2] - All five companies mentioned have investments in the artificial intelligence field, covering areas such as cybersecurity, data analytics, and defense projects [2]