Market Overview - All three major indexes ended lower, with the Dow logging its biggest weekly drop since November, driven by uncertainty over costs and disruptions related to artificial intelligence, revived tariff uncertainties, and geopolitical tensions [1][5] - The S&P 500 lost 30.49 points (0.44%) to close at 6,878.91 points, the Nasdaq Composite fell 204.74 points (0.92%) to 22,673.65, and the Dow Jones Industrial Average decreased by 521.69 points (1.05%) to 48,977.51 [5] Earnings and Corporate Performance - Corporate America is projected to see over a 14% gain in earnings for the fourth quarter, indicating a strong earnings season despite market volatility [2][5] - Financial stocks experienced declines due to concerns over potential losses related to the collapse of UK mortgage provider Market Financial Solutions Ltd, affecting banks like Barclays, Jefferies, and Wells Fargo [5] Sector Performance - Defensive sectors such as consumer staples, healthcare, and utilities outperformed during the session, indicating a risk-off environment where investors are favoring stability over growth [4][5] - Tech shares continued to decline, with concerns over AI impacting chip and software stocks, including Nvidia, which extended its previous drop despite solid earnings [5] Economic Indicators - A hotter-than-expected Producer Price Index reading has reinforced expectations that the U.S. Federal Reserve is unlikely to cut interest rates in the near term [5] - The market is experiencing a shift, with defensive areas gaining strength while cyclical growth sectors lag [5] Company-Specific Developments - Zscaler reported a wider net loss in the second quarter, leading to a significant drop in its stock price [5] - Netflix's stock rose after its decision to exit the competition for Warner Bros Discovery, while Paramount Skydance, the likely buyer, saw its shares close sharply higher [5] - Block's stock surged after announcing it would cut nearly half its workforce to integrate AI into its operations [5] - Dell's shares increased after the company projected that revenue from its AI-optimized servers business would double by fiscal year 2027 and promised to return more cash to shareholders [5]

Core Insights - Zscaler reported a strong quarter, exceeding expectations in both revenue and operating income, with a year-over-year revenue growth of 26% and an Annual Recurring Revenue (ARR) growth of 25% [2][3] Financial Performance - The company achieved a record level of operating income for the period and has consistently exceeded the "Rule of 40," indicating a disciplined growth approach [3] - Net new business for the first half of the year, excluding the acquisition of Red Canary, increased by 10%, compared to just 1% in the previous year [4] - Guidance for net new ARR has been raised to 9.5% for the year, up from the original guidance of 6.7% [4][5] Market Demand and Trends - There is broad-based demand across all metrics, particularly in the context of escalating cyber threats and the growing importance of AI in cybersecurity [6][7] - Zscaler's focus on zero trust inline communication is seen as essential for securing autonomous agent-to-agent communications [7] Growth Strategy - The company continues to pursue both organic growth and growth through acquisitions, with a focus on integrating leading-edge technology into its platform [10][11] - Zscaler has completed three acquisitions this year, with Square X being the most recent, aimed at expanding the breadth of its platform [11] Competitive Landscape - Zscaler is the largest security cloud globally, operating over 160 data centers and processing more than 50 billion transactions daily, which is significantly higher than the daily Google searches [12][13] - The company has not observed notable shifts in the competitive landscape and reports stronger pipeline conversion and visibility going into the second half of the year [14]

Image credit: Getty ImagesWall Street’s main indexes dropped on Friday as AI anxiety hammered technology stocks, with the Nasdaq and the S&P 500 on pace for their steepest monthly loss since March 2025, while hotter-than-expected inflation data also weakened sentiment.Technology shares faced selling pressure this month as concerns over high valuations and the uncertain payoff from Big Tech’s massive AI spending grew.Nvidia slid 2.4 per cent after plunging more than 5 per cent in the previous session despit ...

Welcome back. Shares of cloud security companies Zcaler sinking today despite solid earnings last night after the close. Joining us this morning is Zcaler CEO Jay Chaldry along with John Fort.Morning John. Morning Carl and uh good morning Jay. Good to see you.You beat on the top and bottom lines yesterday. Your revenue guide for the current quarter slightly ahead of estimates at the midpoint and yet your stock is down more than 14% at the moment supposedly because of annual recurring revenue concerns. At th ...

Group 1 - Zscaler (ZS) stock has experienced a significant decline of 23.8%, dropping from $219.67 to $167.36 within a month, with potential for further decline to $113 based on historical performance [2] - The stock has historically shown an average return of 24% in the 12 months following sharp dips, with a peak return of 38% [3][8] - Zscaler has faced six instances of a dip exceeding 30% within 30 days since January 1, 2010, indicating a pattern of volatility [5] Group 2 - The Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has outperformed benchmarks like the S&P 500, achieving over 105% in cumulative return since inception [7] - The median time to peak return after a dip event for Zscaler is 232 days, with a median maximum drawdown of 23% within one year of a dip [8]

分组1: Dell Technologies - Dell's stock is up over 10% despite a volatile market, marking a significant performance in the tech sector [1] - The company reported an EPS of $3.89, a 45% increase from $2.68 last year, and beat estimates of $3.52 [2][3] - Sales increased by 39% year-over-year to $33.3 billion, surpassing the expected $31.9 billion, compared to nearly $24 billion last year [3] - Infrastructure services grew by 73%, and the server business saw a remarkable 123% increase [3] - Dell has raised its guidance for the server business for AI computing to 103% for the full fiscal year 2027, with EPS guidance increased to $2.90 from $2.39 [4] 分组2: CoreWeave - CoreWeave reported a negative EPS of $0.56, missing the estimate of $0.50, but achieved a sales growth of 110% to $1.57 billion [5] - Total revenues for the year reached $5.1 billion, up 168% year-over-year, with guidance for sales between $12 billion and $13 billion [6] - The current contract backlog is reaffirmed at $67 billion, but the market is punishing stocks that are not profitable [7] 分组3: Zscaler - Zscaler's stock has decreased by about 37% over the last six months, despite a strong earnings report [8] - The company reported an EPS of $1.00, up 29% from $0.78 last year, beating the estimate of $0.89, with sales of $815 million, a 26% increase [9] - Free cash flow guidance increased by 18%, and average recurring revenue guidance rose to $3.74 billion [10] - Despite a good report, Zscaler faces challenges due to competitive threats from AI and is trading at high earnings multiples of 35 to 40 times forward earnings [11]

Zscaler Inc. (NASDAQ:ZS) on Thursday reported better-than-expected second-quarter financial results but slashed its FY26 sales guidance.The company reported quarterly earnings of $1.01 per share, which beat the analyst consensus estimate of 90 cents, according to data from Benzinga Pro. Quarterly revenue came in at $815.75 million which beat the analyst consensus estimate of $798.82 million."We believe Zscaler is the cybersecurity platform for the AI age — our in-line Zero Trust platform is uniquely archite ...

Core Viewpoint - Zscaler Inc. reported better-than-expected second-quarter financial results but reduced its fiscal year 2026 sales guidance, leading to a significant drop in share price [1][2]. Financial Performance - The company reported quarterly earnings of $1.01 per share, surpassing the analyst consensus estimate of $0.90 [1]. - Quarterly revenue reached $815.75 million, exceeding the analyst consensus estimate of $798.82 million [1]. Guidance Update - Zscaler raised its fiscal 2026 adjusted EPS from $3.99 to $4.02, compared to the previous estimate of $3.81 [2]. - The revenue outlook for fiscal 2026 was lowered to a range of $3.31 billion to $3.32 billion, slightly above the previous estimate of $3.3 billion [2]. Market Reaction - Following the earnings announcement, Zscaler shares fell by 13.4%, trading at $144.97 in pre-market [2]. Analyst Ratings and Price Targets - Needham analyst Mike Cikos maintained a Buy rating but lowered the price target from $310 to $180 [4]. - Piper Sandler analyst Rob Owens maintained a Neutral rating and reduced the price target from $260 to $185 [4]. - Citizens analyst Trevor Walsh maintained a Market Outperform rating while lowering the price target from $355 to $290 [4].

Core Insights - Zscaler, Inc. reported strong second-quarter fiscal 2026 results, with non-GAAP earnings of $1.01 per share, exceeding estimates by 12.94% and reflecting a year-over-year increase of 29.5% driven by revenue growth and cost management [1][9] - The company's revenues for the second quarter reached $815.8 million, surpassing estimates by 2.22% and management's guidance, marking a 26% year-over-year growth [2][9] - Zscaler raised its fiscal 2026 revenue guidance to a range of $3.309-$3.322 billion, up from the previous forecast, indicating a projected growth of 23.2% from fiscal 2025 [7] Financial Performance - Non-GAAP gross profit increased by 25.6% year over year to $654 million, with a stable gross margin of 80% [4] - Non-GAAP operating income rose to $181 million from $140.5 million in the previous year, maintaining an operating margin of 22% [5] - The company generated operating cash flow of $204 million and free cash flow of $169 million in the second quarter, with total cash and short-term investments amounting to $3.5 billion [6] Customer Metrics - Zscaler added multiple large customers, ending the quarter with 728 customers generating $1 million or more in annual recurring revenues (ARR) and 3,886 customers with ARR exceeding $100,000 [4] - Remaining Performance Obligations (RPO) reached $6.1 billion, reflecting a 31% year-over-year increase, with current RPO representing approximately 47% of total RPO [3] Future Guidance - For the third quarter of fiscal 2026, Zscaler projects revenues between $834 million and $836 million, indicating a year-over-year growth of 22.5% [10] - Non-GAAP earnings per share for the third quarter are expected to be between $1.00 and $1.01, compared to the Zacks Consensus Estimate of 94 cents [10]

U.S. stock futures were lower this morning, with the Dow futures falling around 250 points on Friday.Shares of Flutter Entertainment PLC (NYSE:FLUT) fell sharply in pre-market trading after the company reported worse-than-expected fourth-quarter financial results and issued weak FY26 revenue guidance.Flutter reported fourth-quarter revenue of $4.74 billion, up 25% year-over-year. The revenue missed a Street consensus estimate of $4.97 billion, according to data from Benzinga Pro. The company reported quarte ...