Company Reports

Zscaler reported fourth-quarter earnings that included sales of $898 million, up 25%, and adjusted operating margins of 24%, up 200 basis points. The firm's annual recurring revenue, or ARR, grew 25% to $3.8 billion.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

OpenAI revealed on July 21 that during an evaluation of its models' cyber capabilities, these models escaped the evaluation environment, discovered a never-before-seen (zero-day) exploit, and breached the infrastructure of the digital AI library Hugging Face to get answers for the evaluation test.

Zscaler reported strong third-quarter results, with sales and adjusted operating margins expanding 25% and 140 basis points to $851 million and 23%, respectively. Despite 25% annual recurring revenue growth in the quarter, the firm guided to 16.5% growth next year, leading to shares selling off.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

Anthropic confirmed the existence of an upcoming model after Fortune first reported plans for it on March 26. This new model, named either Mythos or Capybara, is reportedly much better than existing models at finding cyber vulnerabilities. This news sent our cyber coverage down 5% on average.

Over the last few months, investors have become increasingly worried about the future of software economic moats as fears of software disintermediation driven by artificial intelligence have grown.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

Zscaler reported strong fiscal second-quarter results, with the firm's sales increasing 26% to $816 million and adjusted operating margins expanding 50 basis points to 22.2%. The firm raised its 2026 sales outlook by $24 million to $3.32 billion and maintained its margin outlook at 22.5%.

On Feb. 20, Anthropic released a vulnerability-scanning tool aimed at security applications, leading to an average drawdown of over 5% across our cybersecurity coverage as investors worry that Anthropic and other artificial intelligence labs could replace cybersecurity functions within companies.

Investors have become increasingly concerned about software valuations, and as they consider the possibility that artificial intelligence-driven software solutions will replace the incumbents in the software sector, the broader software sector is experiencing a material pullback.

Zscaler kicked off fiscal 2026 with a set of solid results that included sales growing 26% to $788 million and adjusted margins expanding 40 basis points to 22%. The firm also raised its 2026 sales outlook by $20 million to $3.29 billion and maintained its adjusted margin outlook at 22%.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

Zscaler closed out fiscal 2025 with solid results, including sales growth of 21% to $719 million and adjusted margins climbing 60 basis points to 22%. The firm's outlook for fiscal 2026 calls for sales of $3.27 billion and adjusted margins of more than 22%, at the midpoint of guidance.

Zscaler reported solid third-quarter results with the firm's sales growing 23% to $678 million and adjusted margins flat at 22%. The firm also raised its sales and profitability outlook for the full year as demand for its network security solutions remains strong despite the macrouncertainty.

We see Zscaler as a pioneer and leader in zero-trust security solutions, an area of cybersecurity primed for growth due to secular trends such as increased digitization of enterprises and a convergence of networking and security. We have a positive outlook on Zscaler’s solutions as the firm stands to materially benefit from these trends. The firm has built out a narrow economic moat by developing a sticky product portfolio, as evidenced by its strong net and gross retention metrics.

After a spectacular market rout stemming from the imposition of tariffs by the new US administration, cybersecurity stocks have come under immense pressure, with our cybersecurity coverage's average week-to-date return being negative 11%.

Zscaler reported strong second-quarter earnings with the firm's revenue growing by 23% year over year to $648 million and adjusted operating margin of 22%, up 210 basis points year over year. Along with financial results, Zscaler also raised its sales and profitability outlook for fiscal 2025.

Zscaler reported a solid start to fiscal 2025, with sales growing 26% year over year to $628 million and adjusted operating margin coming in at 21%, up 300 basis points year over year.