ZS

A bad day for International Business Machines has turned into great day for CrowdStrike Holdings and other cybersecurity companies. The reason why seems to be a short reference about cybersecurity in a letter to shareholders from IBM CEO Arvind Krishna. Krishna discussed how IBM clients in June shifted quarterly capital spending toward servers, storage, and memory purchases ahead of expected price increases.

A month has gone by since the last earnings report for Zscaler (ZS). Shares have added about 0.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Zscaler due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Zscaler, Inc. before we dive into how investors and analysts have reacted as of late. Zscaler posted third-quarter fiscal 2026 non-GAAP earnings of $1.08 per share, up 28.6% year over year. The figure beat the Zacks Consensus Estimate of $1.00 by 8%. Zscaler’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.4%. Revenues rose 25% year over year to $850.4 million, topping the Zacks Consensus Estimate of $834 million by 1.88% and exceeding management’s guidance of $834-$836 million. The quarter reflected continued demand for the company’s Zero Trust platform, supported by expanding customer commitments. Zscaler’s third-quarter momentum was broad-based geographically. The Americas represented 56% of revenues in the quarter, up approximately 31% year over year, and delivered the strongest growth rate among regions. EMEA accounted for 28% of revenues, up approximately 16%, while Asia Pacific and Japan contributed 16%, rising about 23%. The company also noted that roughly 46% of its remaining performance obligation was classified as current, underscoring near-term visibility tied to committed, non-cancelable future revenues. Remaining Performance Obligations (“RPO”), representing Zscaler’s committed non-cancelable future revenues, were $6.5 billion as of April 30, which increased 30% year over year. Current RPO accounted for 46% of the total revenues. Enterprise traction continued to reflect in the customer mix. Zscaler ended the quarter with 748 customers generating more than $1 million of ARR, an 18% year-over-year increase. Customers generating more than $100,000 of ARR reached 4,003, up 19% from the prior-year period. Total ARR increased 25% year over year to $3.5 billion. The company mentioned that newer offerings delivered just over 30% of new ACV in the quarter, and the ARR tied to those offerings more than doubled from the year-ago period, supporting broader platform adoption. Management highlighted record $1 m...

NEW YORK, June 25, 2026 /PRNewswire/ -- Fred Alger Management, LLC ("Alger"), a privately held growth equity investment manager, today announced the quarterly rebalancing of the Alger Russell Innovation Index ("Index"). Following the close of trading on Friday, June 26, 2026, the Index will be rebalanced, and the following changes will be effective. For additional information, please visit www.lseg.com. Unlock Your Growth Potential with AlgerFounded in 1964, Alger is recognized as a pioneer of growth-style investment management. Privately-owned and headquartered in New York City, Alger can help "Unlock Your Growth Potential" through a suite of growth equity separate accounts, mutual funds, ETFs, and privately offered investment vehicles. Alger's investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for more than 60 years. For more information, please visit www.alger.com. Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies' earnings and may be more sensitive to market, political, and economic developments. This material is not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Alger pays compensation to third party marketers to sell various strategies to prospective investors. London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2026. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" "Russell®", "FTSE Russell®" are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. View original content to download multimedia:https://www.prnewswire.com/news...

NEW YORK, June 22, 2026 /PRNewswire/ -- Fred Alger Management, LLC ("Alger"), a privately held growth equity investment manager, today announced the quarterly rebalancing of the Alger Russell Innovation Index ("Index"). Following the close of trading on Friday, June 26, 2026, the Index will be rebalanced, and the following changes will be effective. For additional information, please visit www.lseg.com. Unlock Your Growth Potential with Alger Founded in 1964, Alger is recognized as a pioneer of growth-style investment management. Privately-owned and headquartered in New York City, Alger can help "Unlock Your Growth Potential" through a suite of growth equity separate accounts, mutual funds, ETFs, and privately offered investment vehicles. Alger's investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for more than 60 years. For more information, please visit www.alger.com. Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies' earnings and may be more sensitive to market, political, and economic developments. This material is not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Alger pays compensation to third party marketers to sell various strategies to prospective investors. London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2026. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" "Russell®", "FTSE Russell®" are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. View original content to download multimedia:https://www.prnewswire.com/new...

NEW YORK, June 11, 2026 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced the results of the June 2026 quarterly rebalance of the Nasdaq-100 Index® (NDX®), which will become effective prior to market open on Monday, June 22, 2026. The following five companies will be added to the Index: Astera Labs, Inc. (Nasdaq: ALAB), CoreWeave, Inc. (Nasdaq: CRWV), Nebius Group N.V. (Nasdaq: NBIS), Rocket Lab Corporation (Nasdaq: RKLB), Teradyne, Inc. (Nasdaq: TER). The following five companies will be removed from the Index: Charter Communications, Inc. (Nasdaq: CHTR), Cognizant Technology Solutions Corporation (Nasdaq: CTSH), Insmed Incorporated (Nasdaq: INSM), Verisk Analytics, Inc. (Nasdaq: VRSK), Zscaler, Inc. (Nasdaq: ZS). For additional information, including notifications on changes to any Nasdaq Indexes, please go to https://indexes.nasdaq.com/ About Nasdaq Global Indexes Nasdaq Global Indexes is one of the world's leading index providers, offering a comprehensive suite of rules-based benchmarks and indexes. The Nasdaq-100 Index® — which measures the performance of 100 of the largest Nasdaq-listed non-financial companies — is tracked by more than 200 investment products with over $800 billion in assets under management globally. Nasdaq Global Indexes publishes and maintains more than 10,000 indexes across asset classes and geographies. About Nasdaq Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software, and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com. Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, and NDX® are registered trademarks of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may diff...

Interested in Okta, Inc.? Here are five stocks we like better. Okta surged nearly 48% over two days after beating estimates and citing strong demand for its AI agent identity offerings. Zscaler dropped more than 31% despite a beat-and-raise quarter, as investors focused on a lowered free cash flow margin outlook and slowing ARR growth guidance. CrowdStrike fell 7% after its fiscal Q1 2027 report despite beating estimates and raising net new ARR growth guidance by 520 basis points to 27.7%. Cybersecurity earnings delivered a sharp split this week, even as three major names all topped expectations and raised their outlooks. The difference came down to quality, guidance, and confidence in the AI opportunity. One company delivered a clean quarter and showed clear signs of AI-driven momentum, sending shares higher. Two others sold off as investors focused on softer spots beneath the headline beats. Here are the key takeaways from the latest round of cybersecurity earnings. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential The latest cybersecurity earnings reports show that investors are rewarding clean execution—and punishing anything less. Identity and access management giant Okta (NASDAQ: OKTA) was the standout in this cybersecurity earnings cycle. → Cybersecurity Earnings: 1 AI Standout and 2 Stocks Under Pressure The day after Okta's fiscal Q1 2027 earnings report was released, the stock popped 30% and then climbed another 13% the next day, for a total two-day gain of nearly 48%. The firm saw revenue grow by just over 11% year over year (YOY) to $765 million, handily beating estimates near $752 million. → Planet Labs: Coming Back Down to Earth Adjusted earnings per share (EPS) rose by 6% YOY to 91 cents. This was much better than analyst expectations of 85 cents, which implied a decline of 1% YOY. Adding to the positives, Okta also raised the midpoints of both its full-year revenue and adjusted operating margin guidance. These figures each increased by 50 basis points to 9.5% YOY and 25.5%, respectively. Notably, current remaining performance obligations (RPOs) rose 12% YOY, while total RPOs grew 16% YOY. Both figures ran ahead of revenue growth, pointing to building demand momentum. Importantly, the company noted strong demand for its AI agent identity offerings, which was key to the stock’s rise. As companies deploy more AI agents, the...

Palo Alto Networks PANW shares have lost 8.5% since the company reported its third-quarter fiscal 2026 results on June 2. The decline in share price can be attributed to the rising integration and acquisition-related costs. As a result of back-to-back acquisitions, PANW is incurring high integration-related costs, including onboarding employees, aligning go-to-market teams and integrating systems and operations. Acquisition-related costs in the third quarter of fiscal 2026 amounted to $113 million, a whopping increase from $5 million incurred in the prior quarter. These costs are expected to hurt the company's profitability before the benefits of synergies from acquisitions are fully realized. Further, PANW’s non-GAAP operating expenses rose to $1.46 billion in the third quarter of fiscal 2026, up from $1.19 billion incurred in the prior quarter. As a percentage of revenues, operating expenses expanded 290 basis points, sequentially. As a result, non-GAAP operating income margin contracted 320 basis points on a sequential basis. PANW is incurring rising costs, which could lead to slower operating leverage and warrants some caution about the company’s near-term prospects. Palo Alto Networks, Inc. (PANW) is currently trading at a high price-to-sales (P/S) multiple, above the Zacks Security industry. Palo Alto Networks’ forward 12-month P/S ratio sits at 16.84X, higher than the Zacks Security industry’s forward 12-month P/S ratio of 15.39X. The Zacks Value Score of F also suggests that PANW stock is overvalued. Image Source: Zacks Investment Research The stock trades at a premium valuation to other industry peers, including Qualys QLYS, Zscaler ZS and Check Point Software CHKP. At present, Qualys, Zscaler and Check Point Software have P/S multiples of 5.18X, 5.54X and 4.95X, respectively. However, for investors, not everything is gloom and doom. Palo Alto Networks is well-positioned to capitalize on the growing demand for advanced cybersecurity solutions. According to Fortune Business Insights, the global cybersecurity market is projected to expand from $248.28 billion in 2026 to $699.39 billion by 2034, representing a massive addressable market. As cyber threats become more sophisticated, enterprises are increasingly prioritizing multi-layered security platforms, which directly contribute to PANW’s strengths. Palo Alto Networks’ wide range of innovative produc...

Advances in artificial intelligence (AI) have had a significant impact on many software companies over the last few years. Many are actively looking to integrate new AI features while defending against disruption. Stock analysts have been trying to understand the impact of AI across various software segments and what future earnings will look like, leading to a massive sell-off across the sector earlier this year. Software stocks aren't out of the woods yet. A slightly disappointing earnings outlook could send a stock cratering. That was the case with Zscaler (NASDAQ: ZS), the cybersecurity software company. Its early-2027 guidance came up well short of expectations, sending the stock 32% lower after its report. Shares have bounced back slightly but remain an incredible buying opportunity for long-term investors. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The big reason for Zscaler's sell-off after its third-quarter earnings report was management's guidance for just 16% to 17% annualized recurring revenue (ARR) growth in 2027. That's a marked slowdown from the 21% it reported last quarter. The largest contribution to the slowdown is how management is accounting for Red Canary contracts. Zscaler acquired Red Canary, a threat detection and response software company, at the start of fiscal 2026. Management said that without including Red Canary renewals, ARR growth would have been 14% last quarter. That is to say, Zscaler actually expects some acceleration in ARR growth on a comparable basis. However, it raises questions about whether the company can continue to grow at the pace investors demand without simply buying growth through acquisitions. The company announced yet another acquisition, Symmetry Systems, ahead of its earnings report. But Zscaler's acquisitions aren't just about showing continued growth. They're an important strategy as the era of agentic AI takes hold. Artificial intelligence increases the need for cybersecurity solutions that can cover multiple attack angles and secure networks and systems. Zscaler's Internet Access and Private Access solutions provide secure routing for internal and external network traffic and...

The United States market has shown robust performance, climbing 1.6% in the last 7 days and up 28% over the past year, with earnings forecasted to grow by 17% annually. In this thriving environment, growth companies with high insider ownership can be particularly appealing as they often signal strong confidence from those closest to the business and can offer significant potential for earnings growth. Click here to see the full list of 176 stocks from our Fast Growing US Companies With High Insider Ownership screener. Underneath we present a selection of stocks filtered out by our screen. Simply Wall St Growth Rating: ★★★★★☆ Overview: REalloys Inc. is a North American company specializing in rare earth metals and permanent magnets, with a market cap of $548.05 million. Operations: The company's revenue is primarily derived from its Metals & Mining - Miscellaneous segment, totaling $0.80 million. Insider Ownership: 31.8% Earnings Growth Forecast: 69.1% p.a. REalloys, with high insider ownership, is poised for significant growth, driven by strategic alliances and innovative technologies. The company recently announced a partnership with Ramaco Resources to secure rare earth materials essential for U.S. strategic sectors. Despite reporting a net loss of US$75.56 million in 2025 and delayed SEC filings, REalloys' revenue is forecasted to grow rapidly at 66.8% annually, outpacing the market average significantly, although share price volatility remains a concern. Navigate through the intricacies of REalloys with our comprehensive analyst estimates report here. Insights from our recent valuation report point to the potential overvaluation of REalloys shares in the market. Simply Wall St Growth Rating: ★★★★★☆ Overview: Streamex Corp. is a medical device technology company that offers advanced digital signal processing solutions for electrophysiology in the United States, with a market cap of $273.53 million. Operations: Streamex Corp. generates its revenue through the provision of advanced digital signal processing solutions specifically designed for electrophysiology applications in the U.S. Insider Ownership: 12.1% Earnings Growth Forecast: 114.5% p.a. Streamex, with substantial insider ownership, is positioned for growth through its innovative tokenized securities platform. The recent launch of a 24/7 secondary liquidity infrastructure in partnership with Orca e...

The United States market has experienced a notable upswing, climbing 1.6% in the last week and up 28% over the past year, with earnings projected to grow by 17% annually. In this environment, growth companies with high insider ownership stand out as potentially attractive investments due to their alignment of interests between management and shareholders and their potential for significant earnings expansion. Click here to see the full list of 176 stocks from our Fast Growing US Companies With High Insider Ownership screener. Let's uncover some gems from our specialized screener. Simply Wall St Growth Rating: ★★★★★☆ Overview: AIRO Group Holdings, Inc. is a multi-faceted advanced Aerospace and Defense company operating in the United States, Europe, and internationally, with a market cap of $282.38 million. Operations: The company's revenue segments consist of Drones at $77.13 million, Avionics at $6.38 million, and Training at $4.51 million. Insider Ownership: 12.6% Earnings Growth Forecast: 67.2% p.a. AIRO Group Holdings is poised for growth with expected revenue expansion of 28.5% annually, outpacing the US market. Despite a volatile share price, insider transactions show more buying than selling recently. The company is exploring acquisitions to enhance its drone and avionics platforms while planning share repurchases to boost shareholder value. Recent product unveilings highlight AIRO's focus on defense and government applications, with promising advancements in autonomous aircraft technology aimed at commercialization by 2027. Click to explore a detailed breakdown of our findings in AIRO Group Holdings' earnings growth report. In light of our recent valuation report, it seems possible that AIRO Group Holdings is trading behind its estimated value. Simply Wall St Growth Rating: ★★★★★★ Overview: Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure with a market cap of $58.77 billion. Operations: The company's revenue primarily comes from its semiconductor segment, amounting to $1.00 billion. Insider Ownership: 10.3% Earnings Growth Forecast: 31.5% p.a. Astera Labs is experiencing rapid growth, with earnings projected to increase significantly at 31.5% annually, surpassing the US market average. Despite recent insider selling, the company’s revenue is expected to grow 26.4% per year, d...

Zscaler’s first quarter results for 2026 were met with a significant negative market reaction, despite the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management attributed quarterly momentum to robust adoption of its Zero Trust SASE platform, expanded usage in the public sector, and strong performance in the Americas. CEO Jagtar Singh Chaudhry highlighted the critical role of Zscaler’s security architecture as organizations accelerate AI adoption, noting, “AI is changing the nature of cybersecurity in real time.” However, the departure of two senior sales leaders and uncertainty around new customer growth contributed to investor concerns. Is now the time to buy ZS? Find out in our full research report (it’s free). Revenue: $850.5 million vs analyst estimates of $835.4 million (25.4% year-on-year growth, 1.8% beat) Adjusted EPS: $1.08 vs analyst estimates of $1.01 (7.1% beat) Adjusted Operating Income: $195.8 million vs analyst estimates of $188.1 million (23% margin, 4.1% beat) Revenue Guidance for Q2 CY2026 is $876.5 million at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $4.11 at the midpoint, a 2.5% increase Operating Margin: -3.5%, in line with the same quarter last year Annual Recurring Revenue: $3.53 billion vs analyst estimates of $3.51 billion (25.1% year-on-year growth, in line) Billings: $972.3 million at quarter end, up 23.9% year on year Market Capitalization: $25.18 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brad Zelnick (Deutsche Bank) asked about the impact of sales leadership turnover. CEO Jagtar Singh Chaudhry said these were senior departures and replacements are underway, while CFO Kevin Rubin explained the guidance reflects potential short-term disruption. Saket Kalia (Barclays) requested clarity on underlying business trends excluding a large federal deal. Rubin responded that the deal included a sizable renewal, and overall performance was strong, with nothing unusual outside the large contract. Joshua Tilton (Wolfe Research) questioned the flat outlook for organic net new ARR...

Zscaler Inc (NASDAQ:ZS) shares plunged 31.52% on Wednesday, May 27, marking one of the sharpest selloffs among major U.S. technology companies in recent years, even after the cloud cybersecurity provider delivered quarterly results that topped Wall Street expectations across key financial measures. For the third quarter of fiscal 2026 ended April 30, Zscaler reported revenue of $850.5 million, representing 25% year-over-year growth and exceeding analyst estimates of $835.7 million. Non-GAAP earnings came in at $1.08 per share, ahead of consensus forecasts of $1.01, while annual recurring revenue (ARR) increased 25% to $3.525 billion. The company also posted a record non-GAAP operating margin of 23%. Despite the stronger-than-expected results, investors reacted negatively after management lowered its annual free cash flow margin guidance to a range of 22.8% to 23.3%, down from the previous forecast of 26.5% to 27%. Executives attributed the reduction to accelerated purchases of IT infrastructure components, including memory, storage, and processors, aimed at getting ahead of rising hardware costs. However, the revision unsettled investors because Zscaler’s premium valuation has long been supported by its relatively asset-light cloud business model. Increased spending on physical infrastructure raised concerns that the company’s operating structure may become more capital intensive than previously expected. Selling pressure intensified further after the company issued fourth-quarter guidance that came in slightly below market expectations, adding to worries about near-term growth visibility. Even after the sharp decline, some valuation models suggest the stock may now be trading below intrinsic value. InvestingPro’s Fair Value model estimates Zscaler’s value at $199.80 per share, implying potential upside of roughly 58% from post-selloff levels. Wall Street analysts remain broadly optimistic as well, with a strong buy consensus and an average price target of $222.03, suggesting possible upside of more than 75%. Still, several risks remain for investors evaluating the pullback. The reduction in free cash flow expectations could prompt analysts to revise future forecasts lower, while Zscaler continues to trade at elevated valuation multiples relative to the broader market even after the correction. Competition within the cybersecurity industry is also becoming i...