Here’s How Zscaler (ZS) Affected Fidelity Growth Strategies Fund’s Performance

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]